Consumers Association of Penang

Giving voice to the little people...since 1970


The Consumers’ Association of Penang (CAP) has over the past decades been advocating rental housing as the most logical move to embrace but apparently both the government and the developers have been promoting house ownership instead.

Khazanah Research Institute managing director Datuk Charon Mokhzani stated that rental housing schemes such as the People’s Housing Programme is the way forward. He cautioned that the government should ensure an efficient use of resources, be wary of exhausting resources for the sake of encouraging home ownership as there are other alternatives such as renting and rent-to-own schemes.

Developers Should Not Provide Housing Loans

The Consumers Association of Penang is strongly against the Urban Wellbeing, Housing and Local Government Ministry’s decision to allow developers to give out loans under the Money Lenders Act 1951 (Amendment ) 2011 . According to the Minister Tan Sri Noh Omar this is a win-win situation.

With all due respect, there is only one obvious winner from this scheme and that is the developer. After all Noh were also quoted as saying that “Our intention is to help developers sell the houses they have built”. Is the Government shifting the burden of unsold units to consumers?

Mortgagees Overinsuring for Fire Insurance of Mortgaged Properties

Banks are exploiting mortgagors by taking out fire insurance on the mortgaged properties to cover the full amount of the loan which in almost all cases will be about 90% of the market value of the properties.

Market value is the combination of the cost of the land and of the building on it. Fire insurance does not cover land, but only the cost of re-building the building(s) on it.

Pressing need for a Tenancy Act

Malaysia urgently needs a Tenancy Act (TA) which will offer protection to both landlords and tenants. A Tribunal should also be set up under the TA to settle disputes between both parties.  

Tenants often complain about landlords that raise rents indiscriminately and impose unreasonable conditions.  On the other hand landlords complain about bad tenants that do not pay rents and the difficulty of getting rid of them.


New apartment owners extorted by developers’ agents/contractors!

renovation-racketThe Consumers’ Association of Penang (CAP) has received countless complaints since 2008 via anonymous letters, telephone calls, letters of complaint and even read in our mainstream media, letters written by hapless flat and condominium owners, highlighting the tactics used by developers’ agents/contractors to force new owners to renovate their units at exorbitant charges.