This article first appeared in The Edge Financial Daily, on December 28, 2015.

IPOH: Property revaluation currently being carried out by the Ipoh City Council (MBI) is necessary to keep up with the overall trend of rising prices, according to mayor Datuk Seri Zamri Man. 

He said the council needed to secure its own funding because it was also affected by the increase in cost of goods and services. “In order to keep providing services to the people and maintaining standards, funds are necessary. 

“We have also kept up by fulfilling our key performance index (KPI),” he told reporters after chairing the MBI full board meeting last Wednesday, in response to a spate of objections against the move, deemed excessive by some affected residents. 

At a public hearing last Tuesday, residents from Taman Ipoh Jaya were at the MBI office in Greentown, Ipoh, for a chance to voice their concerns about their respective revised annual assessment bills. 

One resident and shoplot owner, who only wanted to be known as Swee, said she felt it was not justified, based on the standard of MBI services. 

“It takes ages for them to respond when I complain about rubbish in drains. I am not happy with their performance and feel this revaluation is excessive and at the wrong time,” said the 56-year-old clerk. 

Another resident, Chin, 60, said she had carried out minimal renovations and yet is expected to pay up to RM50 more than previously, which was too much.

“I have simply put up an awning on my premises, which I feel is necessary due to the weather. Why should I be charged so much for such a simple extension?” she said. 

Zamri said the public hearings were held to address the individual grouses of rate payers. 

“We will consider what is to be raised and if there needs to be adjustment in the calculation of their bill, we will do so,” he said. 

“This can result in a lower, higher or unchanged quote than previously,” he said. He added that the public should understand that the MBI revaluation still relied on real estate valuations that had not been revised since 1982. 

Zamri said the 16.5% assessment rate was also only raised from 16% last year. It had been unchanged for many years. 

“Opposition leaders claim that this is the highest rate in the country, but comparatively, we are still using an old value to calculate it.

“The increase in property value due to renovations and extensions is still based on the 1982 value, which is lower than current market prices,” he added. — The Malaysian Insider