Data Protection Malaysia - Move to monitor data protection law

THE STAR - KUALA LUMPUR: A new department is being established under the Information, Communication and Culture Ministry to oversee the implementation of the Malaysian Personal Data Protection Act 2010, scheduled to be enforced early next year.

Deputy Minister Datuk Joseph Salang said the new department was expected to start operating by next year or earlier.

“As you know, to establish the department, we need to do everything right and this will take time,” he told reporters after the launch of the Information Security Summit here yesterday.

He said there was an urgent need for the Government to establish personal data protection laws as there were currently 17 million Internet users in the country.

“The more than 58% of household broadband penetration in the country is also a factor for drawing up the Malaysian Personal Data Protection Act.

“Prior to the implementation of this Act, personal data is only bound by contractual agreement or common law,” he said, adding that the legislation would significantly alter the way personal data was collected, processed, stored and transmitted between individuals and commercial organisations in Malaysia.

“The people will be able to dictate how their data is used by a third party as well as have clearly defined rights to access and correct their personal data.

“I admit that our digital infrastructure is still at its infancy and years behind the more mature infrastructure of digital goliaths, such as the United States.

“But our digital infrastructure has a sound foundation through the establishment of the Multimedia Super Corridor and is reinforced by the Government's commitment to continually improve and upgrade our system through cooperation and smart partnership with the private sector,” he said. - Bernama

http://thestar.com.my/news/story.asp?sec=nation&file=/2011/6/21/nation/8938933

Teh Tai Yong

MASTERING THE LEGAL ASPECTS OF BUYING PROPERTY - TEH TAI YONG

MASTERING THE LEGAL ASPECTS OF BUYING PROPERTY: The past 2 years have been phenomenon years for property prices in Malaysia. Many people call this period the “Property Boom”. Property value, especially in the prime areas, has been soaring. Property investors, new graduates who have just found jobs, bankers, businessmen, and even the Government are discussing the massive increase in property prices.

I have a client who bought a piece of vacant bungalow land in Shah Alam at RM550,000 in 2005 and sold it at RM910,000 in 2009 – a whopping 65% capital appreciation in 4 years. This same piece of land was sold in 2011 at RM1,815,000 recording a capital appreciation of almost 100% in 2 years. How can the price of the same piece of vacant land with no building erected on it increase from RM550,000 to RM1,815,000 in a span of about 6 years?

I have another client who bought a shop lot in Kota Damansara at RM2.7 million in 2007 and sold it for RM4.5 million in 2009. The asking price for the same property in 2011 is RM6.0 million. How can the price of the same shop lot increase from RM2.7 million to RM6.0 million in a span of about 5 years?

The answer is – why not?

Land is a scarcity. The supply decreases as few plots of land are available for development, whilst the demand increases exponentially along with our increasing population.

It is no secret that many people put their money into real estate as one of their investment portfolios. Property investment is viewed as a safer and more stable type of investment which is always preferred by long-term investors as compared to short-term investments, such as shares and commodities.

However, many people buy and sell properties without understanding the legal aspects of the property game. Can someone do that and yet make money from property? The answer is obviously – yes! But wouldn’t you want to be in a better position to play the game by knowing what the rules of the game are?

Playing the property game without understanding the legal aspect is like playing football without understanding the rules. You can simply aim at the goal and kick the ball towards that direction. If you’re lucky, you score. If you’re unlucky, you may have violated some of the rules, making the goal an invalid one. So, would you want to play a game without having a clue as to what the rules are at all? I guess not.

On the other hand, if you know the rules and learn the skills well enough, you will score – not because you are lucky, but because you know how to play the game and win it!

The same goes to the property game when you buy and/or sell properties. If you are lucky, the transaction goes smoothly. But if you aren’t lucky, you may face legal issues, some of which may be extremely unfair to you.

This book serves as a basic manual for housing property buyers and sellers concerning the legal aspects of property transaction.

Besides acquiring knowledge on what the best properties are to buy, it is extremely important that you equip yourself with the basic legal knowledge of property transactions. You can leave the more technical and complicated matters to your property lawyer.

PART A provides you with an essential guide on buying property from a housing developer. You will know what to expect from the day you decide to buy your property until the day when all legal papers are signed.

PART B delves into the salient aspects of sub-sale transactions. Buying a sub-sale property is not always a standard process, due to the different nature or types of property, for example Freehold/ Leasehold, Master Title/ Individual Title etc.

PART C deals with Money! It discusses the financing aspect of buying a piece of property. You may finance your purchase by your fund or obtain a bank loan to part-finance the purchase. This Part deals mainly with the bank financing of your purchase of property.  

PART D explains one of the most commonly used terms in property transactions – Undertaking.

PART E provides you with some samples of practical documents, such as the Sale and Purchase Agreement, the Title, the land search report, etc.

It is my sincere hope that through this book, you will gain some basic knowledge on buying a residential property.

To order, please email to "book@tehkimteh.com"

The Star: Personal Data Protection Act to be introduced next year

KUALA LUMPUR: The long awaited Personal Data Protection Act 2010 will be enforced next year. 

Information, Communications and Culture Minister Datuk Seri Dr Rais Yatim said the Ministry was in the process of getting "the right personnel with the right expertise" to set up the Personal Data Protection Department.

The Act was gazetted into law in June last year.

Dr Rais said the Act, when enforced, would safeguard people's personal information from being abused by organisations that collect and process personal data of individuals.

He said this after the Get Malaysian Business Online (GMBO) launch Tuesday.

PROPERTY - LEASE OPTION IN MALAYSIA: A common practice? By TEH TAI YONG

LEASE OPTION IN MALAYSIA: Would Lease Option become a common practice in Malaysia?

No one would know for sure what is going to happen in the property industry for next 10 years.

However, the following factors may contribute to the popularity of Lease Option in Malaysia:

1) ECONOMY: The banks are tightening their loan approval in view of the global economy conditions. Purchaser/ Borrower/ Investor would face more obstacles in applying for loans.

2) RULES: The 70% ruling on financing by Bank Negara Malaysia has substantial impact on property buyers.

3) TAXES/ STAMP DUTIES: Real property gains tax, stamp duty for transfer/ loan, lock-in period penalty etc - not payable for Lease Option.

4) CRISIS/ BUBBLE??  Lots of Motivated Sellers? [nobody knows this...]


It is the best time to learn the skills now : )

By: TEH TAI YONG

PROPERTY - Lease Option in Malaysia - by TEH TAI YONG

Lease Option Malaysia: I am attending a Property workshop these few days on "Lease Option" in Malaysia.


It is rather a new concept for many people in Malaysia, although this concept has been widely used as a strategy to acquire properties in many other countries such as the United Kingdom, New Zealand, Australia etc. 


Many people approached me and asked whether the concept of Lease Option could work in Malaysia. I would like to share the following views/ information on Lease Option in Malaysia.


What is Lease Option?


A Lease Option is a contract which consist of 2 fundamental elements:

1) Lease of the property: the owner leases the property
2) An Option: the owner grants the buyer the option to purchase the property at an agreed price which is exercisable within a specified period

Who are the parties to Lease Option?


1) Property owner (known as the Seller) who grants the lease and the option
2) Buyer who has been granted the option. He/she may be the tenant under the lease OR may sub-let the property to another tenant.

Why Lease Option? 


This strategy allows the buyers/ property investors to take control of the property without having the need to apply for financing to purchase the property.

Would Lease Option work in Malaysia? 


Why not?  

As long as the parties enter into valid and binding Lease Option contracts, such strategy would work in Malaysia (like in any other countries mentioned above).

Is Lease Option common in Malaysia?

Personally, I do not think so. 

What are the challenges? 


As such concept is still not common in Malaysia, the buyers must have the knowledge and skills to convince the other parties to enter into Lease Option arrangements.

It would be interesting to observe how this concept would develop in Malaysia in next few years.

By: TEH TAI YONG 28-11-2011

Profitability Starts From The Legal Aspects – Mastering The Legal Aspects Of Buying Property” Written By Teh Tai Yong

A review of my book "Profitability Starts From The Legal Aspects – Mastering The Legal Aspects Of Buying Property” by Horlic Lim www.horlic.com

The author, Teh Tai Yong is a practicing lawyer and also an active property investor in Malaysia.

So, it won’t be wrong to learn on the legal aspects of buying property from a lawyer, who is active in property investment activities, too.

Generally, this book tells about the basic legal aspects or knowledge of property transactions, which shall be concerned by both housing property buyers and sellers.

Perhaps, the impression on reading a law-related book is usually boring for majority. But, do not worry! You can actually finish this book within 2 to 3 hours.

The book has a total of 87 pages only, including 50 pages of sample housing development SPA, sub-sale SPA, land search report and company search report.

The contents were written in simple language, any layman should be able to catch up the points easily. The tips given in the book is useful for me! It is definitely worth more than the price of the book.

Major topics covered:

• Buying From Housing Developer
• Sub-Sale Purchase
• Financing
• Undertaking
• Practical Documents

About the Author
Teh Tai Yong is a practicing lawyer in Selangor, Malaysia. He is a partner of Messrs Teh Kim Teh, Salina & Co., a law firm based in Kota Damansara and Setia Alam.

His areas of practice include Property, Banking, Corporate & Commercial, Privacy & Data Protection Laws. He has been invited to speak at seminars and has written several articles which have been published in Malaysia and United Kingdom-based law journals.

How To Make Smoother Transaction For Greater Profit - by Teh Tai Yong

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