sequential approach

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CHAPTER 1 BACKGROUND OF STUDY, AIMS AND SCOPE OF WORK OF STUDY

CHAPTER 2 THE SEQUENTIAL APPROACH

CHAPTER 3 THE MALAYSIAN URBAN SCENARIO

CHAPTER 4 PRELIMINARY PERCEPTION SURVEY : SEREMBAN AND GEORGE TOWN

CHAPTER 5 PLANNING PROCESS AND LAND MATTERS

CHAPTER 6 SEQUENTIAL APPROACH AND POSSIBLE INCORPORATION INTO THE MALAYSIAN PLANNING AND DEVELOPMENT SYSTEM


Prepared by :

In association with

MR. TAN THEAN SIEW

DR. JAMALLULLAILI ABDULLAH

(University Teknologi Mara)

PN. FAHARIAH WAHAB

(Henry Butcher Pty. Ltd)


F I N A L R E P O R T

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1.1 INTRODUCTION AND BACKGROUND

A Study commissioned by the Federal

Department of Town and Country Planning

Peninsular Malaysia in July 2007 on the

feasibility of adopting and adapting the

“Sequential Approach“ in planning and

development in the country, has resulted in an

expanded look at new approaches in the

management of urban growth. This was

undertaken after detailed analysis was made,

based on data on property, market and

development trends in the designated study

areas, as well as examining the issues of urban

planning and development system in meeting

up with the objectives of sustainable

development.

The Study focused on the feasibility of the

Sequential Approach and its application /

adoption into the Malaysian Planning and

Development System. The Sequential Approach

was a management tool used in the United

Kingdom since 1996 to control and monitor

development, such that new developments will

not encroach further and further into prime

agricultural or environmentally sensitive areas.

The Sequential Approach was also used to

control the supply of commercial floor space

within urban areas such that property overhang in

that sector will not occur as what happened

during the recession of 1987-1990’s.



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However, in addressing the whole spectrum of

urban planning and management, the study

team also looked at an alternative urban

management approach that has been applied

mainly in the United States. This alternative

approach was examined in light of the

legislation, existing guidelines and governance

in Malaysia. The mechanisms, goals and

objectives of both approaches were further

examined with the intention of formulating what

is best to address the urban issues in Malaysia.

This Final Draft report is prepared in two

volumes. The first is on the findings of the

sequential Approach and the feasibility of

adopting the technology in managing urban

growth in Malaysia. The second volume is a

report that outlines the alternative approach,

and the final recommendations for the planning

and management of urban development in

Peninsular Malaysia.

1.2 THE GOAL AND SCOPE OF WORKS

1.2.1 Goal of Study

The goal of the study was to present

the findings on the Feasibility of the

Sequential Approach in the

development plan system (Structure

Plans and Local Plans) and the

planning process, with the aim of

assisting local planning authorities and

the State authority in making decisions

on development.

1.2.2 Objectives

The objectives of the research was

outlined as:

a. To study on the understanding of the

“Sequential Approach” , its meaning

and approach as well as suitability in

the land use planning system and

implementation in Malaysia;

b. Research on the best planning

practices in the country as well as

internationally, and identifying the

weaknesses and strengths if they are to

be implemented in the land use

planning system in Malaysia;

c. Undertake an analysis and

rationalization based on the findings

and statistical projections if the

Approach is to be implemented in the

country;



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d. Make recommendations on the

policies and development strategies

in using the Sequential Approach to

address urban issues that affect

land use, economics , social and

environment;

e. Recommend and suggest

improvements in the existing system if

Sequential Approach is to be

adopted in Peninsular Malaysia,

through the development plan and

planning process for use by State

and Local authorities.

f. However, as mentioned above, the

study goals were altered by the

consultants in the midst of the study

such that it focused on the best

planning and management

approach that could be adopted

for use in the country. This is in order

that the urban issues in Malaysia,

which will be outlined below, will be

comprehensively addressed.

1.3 WORK UNDERTAKEN

The Study team undertook extensive research

on secondary sources on the two approaches

to urban growth management. As part of the

original requirement of the Study, the Team also

undertook the collection of primary data in the

form of a survey of people involved in the

formulation of development plans, in the planning

approval process as well as those involved in the

decision making of the development

applications.

Stage 1 involved a comprehensive technical

evaluation of the Sequential Approach and the

Smart Growth Approach. This included extensive

research and literature review as well as data

collection via primary and secondary collection

of the selected cities under study. The analysis

and understanding the potentials, constraints and

major issues related to the two approaches in

terms of possible adoption and implementation

were incorporated.

At stage 2, the initial findings were tabled and

early recommendations made. A SWOT analysis

of the Sequential Approach was undertaken to

determine the strengths, opportunities, Threats

and Weaknesses. An analysis of the study areas,

namely George Town and Seremban were made,

and an opinion survey was undertaken of the

stakeholders involved in plan making, plan

processing and decision making. A preliminary

proposal was forwarded that included the

technical, legislative, procedural and

organizational elements. The preliminary report

also indicated where possible implementation

can be made.



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The Draft Final Report is the third stage which is

the formulation of the Strategic Proposals and

recommendations based on the findings and

identification made in Stage 2. This report shall

be detailed and shall focus on implementation

issues such as agencies to implement,

investment opportunities and mechanisms to

implement including statutory regulations and

requirements.

Three reports have been produced prior to this

one. In order that the draft final report is fully

understood, the contents of the previous

submitted reports shall be outlined so that all

facts and study elements are well covered.

1.3.1 The Inception Report

The Inception report studied in detail the

Sequential Approach as required out of

the study being commissioned. The

concept of the Sequential Approach,

the legislative provision, its application

and mechanism, and its impact were all

outlined so that the clients and potential

stakeholders would fully understand and

comprehend the Approach.

The Inception report also outlined issues

with the identification of urban

boundaries and used the cities of

George Town and Seremban as

examples.

1.3.2 The Interim Report

The interim report further explored the

issue of urban land delineation as well as

categorization of urban boundaries by

types of centres and their definition. The

current urban issues in the country,

especially pertaining to sprawl were

outlined and this was evidenced by data

and previous studies undertaken in both

Johor Bharu and Kuala Lumpur. This report

also introduced and elaborated on the

concept of smart growth besides that of

the Sequential Approach.

The Interim Report also looked at current

Malaysian policies, legislation and

guidelines that prevail upon the subject of

urban growth and management. Issues of

land development and the planning

process were outlined, and the results of

the perception survey undertaken on

stakeholders in Seremban and George

Town were also tabled.



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1.3.3 The Technical Report

The Technical Report presented the

analysis and inferences from the Interim

report findings. This included

analyzing the current

Planning Legislation and

Development Planning

System. A SWOT analysis was

also undertaken on the

Sequential Approach to

prove the fact that the

Approach will not be

sufficient to address urban

planning and management

issues in Malaysia. The

criteria required and the

prospects of the Approach

were also outlined.

Finally the Technical Report presented in

detail an alternative approach that was

worth exploring. The detailed concept,

objectives and mechanisms were tabled.

The report made recommendations on a

combined approach that included the

Sequential Approach as one of the mechanisms

of the Smart Growth concept. This combined

approach has been given a new terminology,

namely “INTEGRATED SUSTAINABLE URBAN

GROWTH” (ISUG) Approach. Its strategic tools

and mechanisms, criteria and implementation

mechanism, as well as the possible

incorporation of the ISUG into the Malaysian

Planning and Development System were

mooted.



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The three reports and a summary of their contents are as follows:

REPORT STAGES CONTENTS

Inception

Report

The Goals of the Study; Objectives and current issues;

The Scope and Methodology, definitions of the concept, policy, laws and

procedures pertaining to implementation, a Study on existing mechanisms and

improvement;

Methodology, output and deliverables, and data and information needs.

Interim report Defining and delineating city boundaries; delineation of urban boundaries in

national policies;

Problem Statement and Issues – urbanization and urban sprawl and sustainable

development;

International Urban Development Policies and Practices – a literature review; The

Sequential Approach, Smart Growth;

National Policies, Strategies & Legislative provisions – the national physical plan,

The National Urbanization Policy, 5 –year Malaysia Plans, The Town & Country

Planning Act, The National Land Code, Uniform Building Bye-Laws, Strata Titles Act,

Local Government Act;

Planning Process and Land matters – Development Planning, Development

Comtrol, Plan Implementation and Monitoring;

Urban Development, Property and Market Trends – the trend in George Town and

Seremban, Overview of the property markets;

The preliminary perception survey of Seremban and George Town.

Technical

Report

Analysis and Inferences from the Interim Report Findings – the planning legislation

and the development plan system, the land development system, urban growth

trends and sustainability, and urbanization trends of study areas;

Strengths, Weaknesses, Opportunities and Threats Analysis – the criteria required

and prospects of sequential approach;

The alternate approach – smart growth, criteria required and the Malaysian

experience and context;

The recommended approach – the Integrated Sustainable Urban Growth

Approach – key goals and objectives, strategic tools and mechanisms, and

criteria for implementation

The incorporation of the ISUG approach into the Malaysian Development Plan

System



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Volume 1 of this Draft Final Report focuses on the

Sequential Approach, the legislative and

technical provision and implementation, as

practiced in the United Kingdom where it

originated from.

The flow chart shown in Fig. 1.1 provides an

overview of the approach taken in the study in

order to examine the applicability of the

Sequential Approach to the Malaysian Planning

and Development System. As the Sequential

Approach was developed to address an Urban

problem in the U.K., the Malaysian Urban issues

and problems were examined. Studies that have

been previously undertaken are quoted herein,

and a survey has been undertaken also on the

property markets and trends within the

designated urban areas of Georgetown and

Seremban. This is to gauge not only on the

current urban issues but also to test the

application of the Sequential Approach into the

Malaysian urban context. Reference is also made

to the Brownfield Study, undertaken by the JPBD.



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Figure 1.1 Sequential Approach Study Flow Chart

What is Sequential Approach

- definitions

- mechanisms

- requirements

Defining

Urban

Centres

Study of

Johore Bharu

and Klang

Valley Urban

Sprawl

Property

Scenario

Survey of Georgetown &

Seremban

The Malaysian Urban Scenario & Development Issues


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2.1 INTRODUCTION

The Sequential Approach to Planning can be

summed up as a technique towards

sustainable development. It is a method of

monitoring physical development and in the

planning system and process, ensures that

physical development meets up with

demand. The approach also ensures that

“brownfield” sites as well as previously

developed sites, be given priority for

development, over “greenfield” areas. In this

way, urban sprawl is minimized, there is no

oversupply in development products (housing

or commercial floor space), and existing

infrastructures are fully utilized.

The Sequential Approach in planning and

development has been in practice in the UK

since 1996 through the Planning Policy

Guidance (PPG) No.6 issued by the

Department of Environment, Transport and

the Regions, on Town Centres and Retail

Developments, and then followed by PPG 3, on

Housing, in 2002.

The Principles of the Sequential Approach have

been described in the Planning Policy Guidelines

(PPG) of the Department of the Environment,

Transport and the Regions, United Kingdom, in

particular PPG No.6.

PPG No.6 (June 1996) relates to Planning

guidelines for Town Centres and Retail

developments, in which emphasis has been

given to a plan-led approach to promoting

retail, leisure and employment development. It

establishes a Sequential Approach …”with

preferance to Town Centre locations, then

edge-of-town centre and finally out-of-town

centre.

This has been followed by PPG 3 (March 2002),

which is a guideline on Housing. PPG 3


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encourages “new housing to be provided in

such a way as to promote sustainable forms

of development, making the most efficient

use of previously developed land. This is to

be achieved by amongst other things,

concentrating most additional housing

development within urban areas; maximising

the use of “brownfield” sites and the

conversion/re-use of existing buildings; and,

securing minimum development densities of

between 30-50 dwellings per hectare.”

2.2 ENABLING LEGISLATION –PLANNING POLICY

GUIDELINES (PPG), ENGLAND AND WALES.

As mentioned above, the enabling legislation in

the UK is the Town and Country Planning Act

1990 (as amended by the Planning and

Compensation Act 1991). Section 54 (A) of the

Act states that :

“Where, in making any determination

under the planning Acts, regard is to be

had to the development plan, the

determination shall be made in

accordance with the plan unless material

considerations indicate other wise.”

Planning Policy Guidance (PPG) notes set out

the Government’s policies on different aspects

of planning. They should be taken into account

by regional planning bodies and local planning

authorities in preparing regional planning

guidance and development plans and may also

be material to decisions on individual planning

applications and appeals. This guidance

introduces a new approach to planning for

housing which, for most authorities, will mean

that their development plan will require early

review and alteration in respect of housing.

PPG 3 outlines the Sequential Approach in

clause 1.8 and 1.11 as follows:

1.8 The Government wishes local

planning authorities to take a

positive approach, in partnership

with the private sector, in

identifying additional sites for

retail development.

Brownfields are abandoned or under-used industrial and

commercial facilities where expansion or redevelopment is

complicated by real or perceived environmental

contaminations.

In city planning, brownfield land (or simply a brownfield) is

land previously used for industrial purposes or certain

commercial uses that may be contaminated by low

concentrations of hazardous waste or pollution and has the

potential to be reused once it is cleaned up. Land that is more

severely contaminated and has high concentrations of

hazardous waste or pollution, such as a Superfund or

hazardous waste site, does not fall under the brownfield

classification.

In the United Kingdom and Australia, the term applies merely

to previously used land.

Greenfield land is a term used to describe a piece of

undeveloped land, either currently used for agriculture or just

left to nature. In contrast, brownfield land is an area that has

previously been developed, such as a paved lot or the site of a

demolished building.


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1.11 Adopting a sequential

approach means that first

preference should be for town

centre sites, where suitable

sites or buildings suitable for

conversion are available,

followed by edge-of-centre

sites, district and local centres

and only then out-of-centre

sites in locations that are

accessible by a choice of

means of transport.

In Scotland, a system of National Policy

Guidelines (NPPGs), Circulars and Planning

Advice Notes (PANs), are used in Town and

Country

Planning. The

differences in

these are listed

as follows:

National Planning Policy Guidelines

(NPPGs) provide statements of

Government policy on nationally

important land use and other

planning matters, supported where

appropriate by a locational

framework.

Circulars, which also provide

statements of Government policy,

contain guidance on policy

implementation through legislative or

procedural change.

Planning Advice Notes (PANs) provide

advice on good practice and other

relevant information.

Statements of Government policy contained in

NPPGs and Circulars may, so far as relevant, be

material considerations to be taken into

account in development plan preparation and

development control.

This National Planning Policy Guideline (NPPG 8)

sets out the Government’s policy for town

centres and retail developments. It also

addresses other non-retailing uses which have a

role in contributing to the economic health and

enhancement of the town centre. The NPPG8

defines the factors that the Secretary of State

will have in mind when considering policies and

development proposals that come before him.

Planning authorities are expected to take its

contents into account in preparing their

development plans and in undertaking their

development control responsibilities.

The advice on sequential approach is

mentioned in section 12 of these guidance:

“12. Planning Authorities and

developers should adopt a sequential

approach to selecting sites for new

retail, commercial leisure

developments and other key town

centre uses. First preference should

be for town centre sites, where sites or

buildings suitable for conversion are

available, followed by edge of centre

sites, and only then out of centre sites

in locations that are, or can be made

easily accessible by a choice of means

of transport.”


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2.3 OBJECTIVES OF SEQUENTIAL APPROACH

The NPPG 8 Town Centres and Retailing

document has outlined the following

objectives and commitment:

i. Shopping is an

essential part of life

for most people in

Scotland, serving

both their everyday

needs, and

providing more

specialist goods. It

also has important

links to tourism and

leisure activities.

Retailing is in turn an

important economic

activity in the service sector, providing

over 214,000 full and part-time jobs in

Scotland as well as economic benefits

to both the local and national

economies.

ii. The Government has put sustainable

development at the heart of its

domestic and international policies. It

takes the view that it embraces

economic growth and social progress

as well as concern for the environment.

This is reflected in the Government’s

commitment to promoting economic

activity by establishing favourable

economic conditions for the market to

exploit. As part of its policies related to

welfare to work and overcoming social

exclusion, it wants as many as possible

to take advantage of the changes in

retailing and leisure, and to ensure that

most people, including the disabled, have

access to them. Promotion of and greater

reliance on public transport will form part

of this approach. Furthermore, concern

about environmental change has resulted

in challenging global, international and

national commitments, while protection

and improvement of the natural and built

environment continues to be a priority at a

domestic and international level.

iii. Having regard to these wider objectives,

the Government has adopted planning

policies which promote sustainable

development by supporting the

regeneration of urban areas, particularly

town centres, reuse previously developed

sites, protect green belt or countryside.

Moreover, as part of its integrated

transport policy, the Government expects

development to be located where there is

better access by public transport, walking

and cycling and less dependence on

access by car. It attaches importance to


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air quality and recognizes that traffic is

the dominant source of pollution in

urban areas.

iv. Government policy gives particular

weight to the environmental quality of

our cities and towns, and is strongly of

the view that the economic and social

consequences of urban decay are

unacceptable. The quality of the urban

environment and urban life should

encourage people to want to live and

work there. The Government is

committed to land use policies which

ensure that retailing and major

commercial leisure developments are

suitably located and designed, and

provide a catalyst for economic, social,

and environmental benefits for the

community at large.

v. Accordingly, the Government’s broad

policy objectives are:

to sustain and enhance the vitality,

viability and design quality of town

centres, as the most appropriate

location for retailing and other

related activities ;

to maintain an efficient,

competitive and innovative retail

sector offering consumer choice,

consistent with the overall

commitment to town centres; and

to ensure that ways of meeting

these objectives are compatible

with sustainable development and, in

particular, that new developments are

located where there are good public

transport services, and better access

for those walking and cycling, leading

to less dependence on access by car.

vi. The Government is committed to

protecting and enhancing the vitality and

viability of town centres. They offer a

range, quality and convenience of

services and activities that are attractive

not only to the local population and visitors

but also to investors. Despite recent

pressures, they retain many natural

advantages for shopping, leisure and

employment. Shops in particular make an

important contribution to their character.


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Town centres have a key role in

contributing to the quality of life in

urban areas and provide an important

focus in rural areas, allowing both urban

and rural communities to benefit from

competition between retailers and

types of retailing. Sustaining their vitality

and viability depends on continuing

investment in new schemes and

refurbishments and a positive and a

proactive approach by planning

authorities, in partnership with other

public sector agencies and the private

sector, in the identification and

development of suitable sites.

Furthermore, a range of uses other than

shopping should be encouraged to

locate within the town centre, including

commercial leisure developments.

vii. Protecting and enhancing town centres

is therefore a key consideration which

underpins Government policy. In

considering whether there is a

requirement for additional retail and

other developments, planning

authorities are expected to reflect the

primacy of town centres and promote

comprehensive policies and proposals

for sustaining them, both through

development plans and development

control decisions. In support of this

policy, planning authorities should

adopt a sequential approach to

selecting sites for new development,

with first preference always being given

to development opportunities in town

centres.

From the above documentation, the

objectives of the Sequential Approach to

Planning and Development can be

summarized as follows:

a. To achieve sustainable development

in reducing the growth or expansion

of cities into valuable greenfield

areas;

b. To maximize land use within existing

city or urban centres by developing

on previously developed lands, or

brownfield sites;

c. To retain the city core as the most

vibrant commercial centre, thus

maximizing on the use of public

transport and other amenities;

d. To bring back people into the inner

cities to make city centres vibrant,

social places where people can live,

work and play.

e. To integrate land use planning and

transport by reducing the need to

travel and promote increased

accessibility to jobs, services and

facilities.


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2.4 HOW IT WORKS

PPG 3 describes clearly the process of using

the sequential approach in the housing

sector. However, a similar approach can be

applied to retail, private institutional or any

other development that is associated with

the provision of services for a vibrant town

centre. PPG 3 describes the steps necessary

from the identification of areas and sites to

allocating and releasing land for

development.

PPG3 requires local planning authorities, in

identifying sites to be allocated for housing in

local plans, to follow a search sequence,

starting with the re-use of previously developed

land and buildings within urban areas identified

by their urban housing capacity study, then

urban extensions, and finally new development

around nodes in good public transport corridors.

PPG3 also emphasizes that local plans should:

include policies for the release of sites for

housing and make allowance for previously

developed windfalls; and

be kept up to date, reflect national policy

guidance and be underpinned by effective

monitoring.


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a. Identifying areas and sites

RPG (Regional Planning Guidance) and

development plans should provide clear

guidance as to the location of new

development so that it meets housing

requirements in the most sustainable way:

at the regional level, RPG should

identify the major areas of growth

in the region, and determine

where housing provision is to be

sought by structure plan/UDP area,

taking account of assessed

capacity;

at the strategic planning level,

structure plans/Unitary

Development Plans (UDP’s) should

identify growth areas and a

distribution of the additional

housing likely to be required to

district level; and

at the local level, local plans and

Unitary Development Plans should

identify sites for housing and

buildings for conversion and re-use

sufficient to meet housing

requirements after making an

allowance for windfalls and

manage the release of land over

the plan period.

Local planning authorities in preparing

development plans should adopt a

systematic approach to assessing the

development potential of sites, and the

redevelopment potential of existing buildings,

deciding which are most suitable for housing

development and the sequence in which

development should take place.

In identifying sites to be allocated for housing in

local plans and UDPs, local planning authorities

should follow a search sequence, starting with

the re-use of previously-developed land and

buildings within urban areas identified by the

urban housing capacity study, then urban

extensions, and finally new development around

nodes in good public transport corridors. They


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should seek only to identify sufficient land to

meet the housing requirement set as a result

of the RPG and strategic planning processes.

In doing so they do not need to consider all

the land in their area: they should not extend

the search further than required to provide

sufficient capacity to meet the agreed

housing requirement.

In deciding which sites to allocate for housing

in local plans and Unitary Development Plans,

local planning authorities should assess their

potential and suitability for development

against each of the following criteria:

the availability of

previously-developed

sites and empty or under-

used buildings and their

suitability for housing use;

the location and

accessibility of potential

development sites to

jobs, shops and services

by modes other than the

car, and the potential for

improving such

accessibility;

the capacity of existing and

potential infrastructure, including

public transport, water and

sewerage, other utilities and social

infrastructure (such as schools and

hospitals) to absorb further

development and the cost of

adding further infrastructure;

the ability to build communities to

support new physical and social

infrastructure and to provide sufficient

demand to sustain appropriate local

services and facilities; and

the physical and environmental

constraints on development of land,

including, for example, the level of

contamination, stability and flood risk,

taking into account that such risk may

increase as a result of climate

change.


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2.5 ALLOCATING AND RELEASING LAND

FOR DEVELOPMENT

In determining the order in which sites

identified in accordance with the criteria set

out , the presumption will be that previously-

developed sites (or buildings for re-use or

conversion) should be developed before

greenfield sites. The exception to this principle

will be where previously-developed

sites perform so poorly in relation to

the criteria listed as to preclude

their use for housing (within the

relevant plan period or phase)

before a particular greenfield site.

Local plans and Unitary

Development Plans should include

policies for the release of sites for

housing development according to

the order of priority set out in the first

sentence of paragraph.

This should take account of the likely

supply of windfall sites. Local

authorities should manage the

release of sites over the plan period in order

to control the pattern and speed of urban

growth, ensure that the new infrastructure is

coordinated with new housing development

and deliver the local authority’s recycling

target. It is for each local planning authority

to determine the form of such phasing

policies but good practice guidance will be

issued. One possible approach to managing

the release of land for housing is to divide the

plan into three phases, allocating sites for

development in accordance with the set criteria

and assumptions.

Sufficient sites should be shown on the plan’s

proposals map to accommodate at least the

first five years (or the first two phases) of housing

development proposed in the plan. Site

allocations should be reviewed and updated as

the plan is reviewed and rolled forward at least

every five years. Local planning authorities

should monitor closely the uptake of both

previously-developed and greenfield sites and

should be prepared to alter or revise their plan

policies in the light of that monitoring. However,

it is essential that the operation of the

development process is not prejudiced by

unreal expectations of the developability of

particular sites nor by planning authorities

seeking to prioritise development sites in an

arbitrary manner.


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2.6 THE PROCESS UNDER SCOTLAND’S NPPG8

Only if it can be demonstrated that all town

centre options have been thoroughly

addressed and a view taken on availability,

should less central sites in out-of-centre

locations be considered for key town centre

uses. Where development proposals in such

locations fall out with the development plan

framework, it is for developers to demonstrate

that town centre and edge-of-centre options

have been thoroughly assessed. Even where

a developer, as part of a sequential

approach, demonstrates an out-of-centre

location to be the most appropriate, the

impact on the vitality and viability of existing

centres still has to be shown to be

acceptable. Furthermore, the development

should be easily accessible by a choice of

means of transport and not be dependent

on access solely or mainly by car. The

majority of customers and staff in the forecast

catchment area should be served by

networks for walking and cycling and regular

and frequent public transport services.

The principles underlying the sequential

approach apply also to proposals to expand, or

change the use of existing out-of-centre

developments, where the proposals are of such

a size or type that they would result in a change

to their character as determined by the

development plan.

2.7 Assessing new development applications

During the 1980s and 1990s there were

investments in town centres, but more

significantly there was also growth in new forms

of retail and commercial leisure developments

with traditional centres, such as food superstores

and retail parks. Cities and most towns in

Scotland are now served by a range of recent

major developments and others approved or

under construction, often in out-of-centre

locations. Where Planning Authorities consider

there to be a requirement for further new

developments or the expansion of existing

developments, development plan policies and

proposals should indicate the location, scale of

additional floor space and type of development

appropriate. Such policies or proposals should

be consistent with the general policies in this

NPPG. Accordingly, applications for further new,

or expansions to existing, major retail and

commercial leisure developments, should initially

be assessed as to whether they are consistent

with the development plan. Where there is

considered to be no requirement for further

developments, additional sites should not be

identified in the development plan.


2-12


Where a proposed development is not

consistent with the development plan, it is for

the developer to demonstrate why an

exception to policy should be made. Such

proposals should be rigorously assessed by

the planning authority against the policies set

out in this NPPG and should be refused if all

the following considerations cannot be met.

The proposed development should :-

a. Satisfy the sequential approach;

b. Not affect adversely, either on its own

or in association with other built or

approved developments, the

development plan strategy in support

of the town centre, taking account of

progress being made on its

implementation, including through

public and private investment;

c. Be capable of co-existing with the

town centre without individually or

cumulatively undermining its vitality

and viability, if necessary supported

by planning conditions limiting, for

example, floorspace or the range of

goods sold or the level of car parking;

and should not lead to changes to

the quality, attractiveness and

character of the town centre,

affecting the range and types of

shops and services that the town

centre would be able to provide, or

undermine leisure, entertainment and

the evening economy;

d. tackle deficiencies in qualitative or

quantitative terms which cannot be met

in or at the edge of the town centre;

e. Not run counter to the Government’s

integrated transport policy. Locations for

major growth and travel generating uses,

including retail and commercial leisure

developments, should be easily and

safely accessible by a choice of means

of transport providing a network of

walking, cycle and public transport

routes, which link with the forecast

catchment population, in addition to the

car. Consideration should be given to

whether the development would have

an effect on travel patterns, car use and

air pollution ;

f. Be, or able to be made, easily accessible

by existing regular, frequent and

convenient public transport services.

Such services should be available from

the time of opening of the development

and, where possible, improved over its


2-13


life. Planning agreements may be

used to secure such accessibility in

appropriate circumstances;

g. Address at the developer’s expense

the consequences to the trunk and

local road networks of the generated

and redistributed traffic resulting from

the development proposal. In certain

circumstances the

impact may not be

restricted to junctions

and road lengths

adjacent to the

development;

h. result in a high

standard of design,

ensuring the built form,

scale, materials and

colour contribute

positively to the overall

environmental quality

and attractiveness of the urban area,

and should not, for example, result in

sporadic and isolated development,

especially along major road corridors;

i. not threaten or conflict with other

important policy objectives e.g. green

belt, urban regeneration, the loss of

good quality industrial or business

sites; or where priority is being given to

the reuse of vacant or derelict land,

the development should, in all other

respects, provide an appropriate

location for the proposed

development;

j. not affect adversely local amenity; and:

k. not lead to other significant

environmental effects.

As with new developments, the expansion of

existing developments should be judged against

the Government’s objectives of sustaining and

enhancing existing town centres. Unless the

proposed expansion accords with the strategy

set out in the development plan which provides

for further development, it should be assessed

against the considerations in paragraph 45

above. The presence of an established

development should not in itself set a precedent

or provide the justification where such expansion

would be inconsistent with the development

plan and/or the policy principles in the NPPG


2-14


Figure 2.1:

Methodology of Using Sequential Approach

To Planning And Development

LOCAL PLAN

- Identification of sites

for buildings for

conversion + re-use

- Land availability

- Future housing &

commercial

requirements

- Detail guidelines (gfa,

plinth, density, etc)

IDENTIFY SEQUENCE OF PRIORITY AREAS

SEARCH SEQUENCE

1. Start – re-use of previously developed

land & buildings

2. Identify sufficient land & capacity to

meet needs

3. Location – priority to transportation

nodes & services

CONTROL RELEASE OF

SITE (BY PHASING)

- Slow down pattern &

speed of growth

- Ensure that

infrastructure is

coordinated

REVIEW & MONITOR

- Every 5 years

- Update plan


2-15


Figure 2.2: Sequential Approach to Determining Planning Applications for

Residential Development PAN 30

Footnote:

Issues such as design and layout, mix of dwelling types

and size and car parking spaces should be

considered as a matter of course in any application for

residential development

Yes

Yes

Yes

Yes

Yes

No

No

No

No

No

Receive application for

residential development

Is the site 0.4 hectare (Section 3) or

above?

Is the application a further

phase of an existing

scheme?

No seq

approach

required

Is the site wholly

brownfield? (Section 4)

Do NOT assess

application site

against alternative

sites

Assess application

siteagainst PPG3

policies and criteria

(Section 7)

Does the application site

perform so poorly against PPG3

policies and criteria that it

ought to be refused?

Refuse

Application

Approve

Application

Assess against all available

brownfiled sites (as set out in

Table 1) and against PPG

policies and criteria)

No sequential approach

required (unless site is part of a

UDP Housing Proposal or forms

part of a larger site over 0.4

hectare that may have

potential for residential

development)

Are there available

brownfield sites within the

area of search?

Refuse

application

Approved

application unless

the site performs

particularly poorly

against PPG3 policies

and criteria


2-16


2.8 REQUIREMENTS FOR IMPLEMENTATION

There are several factors and elements that

are required for the implementation of the

sequential approach. These have been well

outlined in Scotland’s NPPG8 as extracted

below:

2.8.1 Support of Town Centres as the first

choice

The Government recognizes that the

application of the sequential

approach requires flexibility and

realism from developers and retailers

as well as planning authorities In

preparing their proposals developers

and retailers should have regard to

the format, design, scale of the

development, and the amount of car

parking in relation to the

circumstances of the particular town

centre. In addition they should also

address the need to identify and

assemble sites which can meet not only

their requirements, but in a manner

sympathetic to the town setting. As part

of such an approach, they should

consider the scope for accommodating

the proposed development in a different

built form, and where appropriate

adjusting or sub-dividing large proposals,

in order that their scale might offer a

better fit with existing development in the

town centre. The scope for converting

existing vacant and under-used premises

in the town centre should be addressed

as part of this approach. Consideration

should also be given to whether the

range of goods to be sold, including, say,

bulky, electrical and fashion goods,


2-17


could be retailed from a town centre

or edge-of-centre site, in some cases

in a different manner.

Planning authorities should also be

responsive to the needs of retailers

and other town centre businesses. In

consultation with the private sector,

they should assist in identifying sites in

the town centre which could be

suitable and viable, for example, in

terms of size and siting for the

proposed use, and are likely to

become available in a reasonable

time, for example, within the plan

period or 5 years, where the plan

period is short or silent on the matter.

There may also be sites in town

centres which are currently subject to

constraint. The planning authority

should indicate whether, how and

when the constraints could be

resolved, for example, by assisting in

land assembly.

2.8.2 Action required -Development Plans

In preparing development plans,

planning authorities should take account

of the broad forecasts of retail demand,

deficiencies in retailing provision (if any),

and how the retail sector is likely to

respond to that demand over the plan

period, by reference to location and

type of retailing. Likewise, they should

take account of the market demand for

other related developments, such as

commercial leisure developments. They

should, in consultation with business

interests and the local community, seek

to agree a framework for promoting the

retailing and commercial leisure roles of

town centres, co-ordinated with their

policies on transport, car parking and

regeneration. This

should lead to a

town centre

strategy involving

the private sector

including retailers,

leisure operators,

property owners

and investors, and

infrastructure

providers, setting

out the scope and

policies for

change, renewal

and diversification.

2.8.3 Identify Qualities of the Town Centre

Planning authorities should identify and

build on the essential qualities of the


2-18


centre and seek to ensure that it

meets the needs of the community it

serves. They should take account of

the dynamic nature of the retail and

leisure industries and the need to

make good use of existing

infrastructure investment in town

centres. In this way, the town centre

strategy can then be reflected in the

development plan. Important

considerations will include:

the opportunities for growth,

improvement or

redevelopment (including

sites on the edge of centres)

and the need to encourage

the best use of existing

facilities;

the scope for diversification

of uses to broaden the range

of town centre activities ;

accessibility,

the impact of

traffic, and the

availability of

public

transport ;

the need to

retain and

improve open

space and

recreational

opportunities;

the opportunities for housing

and offices, particularly in

mixed-use developments; and

scope for adding to the quality

of the urban environment.

2.8.4 Establishing Priorities

Within that context it should be possible

to establish the extent to which the town

centre in the first instance, and edge-of-

centre in the second instance, can

satisfy that demand through

development and change. As part of

the overall provision, consideration

should be given to the role of out-of-

centre developments and whether there

is a requirement for further such provision.

If so, such developments should always

be within the overall policy objective of

giving priority to, and strengthening and

safeguarding, the town centre. The

scope for provision of any new out-of-

centre development should satisfy all


2-19


and should be incorporated in the

development plan for the area.

2.8.5 Likely Impact on Rural Areas

Where appropriate, development

plans should take account of the likely

impact of major shopping proposals

on rural areas. They should also ensure

that their policies are compatible with

the aim of encouraging sustainable

development and generally seek to

minimise travel demand for shopping

in their locational decisions. In

devising policies for the overall

retailing and commercial leisure

strategies, planning authorities should

take account of the existing stock of

recently developed floorspace and

the likelihood of other approved

proposals being developed.

2.8.6 Structure Plans

The strategic framework in structure

plans should :

set out the policy for supporting

and enhancing town centres,

including an assessment of how

far the existing town centres might

be able to meet the demands for

new shopping floorspace and

other uses, while contributing to

consumer choice and access to

new formats;

indicate whether, as part of the

sequential approach, there is

scope for retail developments with

town centres; if so, indicate their

scale and general location, ensuring

co-ordination with expected housing,

employment, or other planned

developments, including transport

infrastructure; and

reflect the criteria set out in this

guideline against which retail and

commercial leisure development

proposals with town centres should

be assessed.

The key diagram should distinguish the

types of location to which different

policies apply.

2.8.7 Local Plans

Local plans should provide local detail

and a sharper focus to the structure plan

framework. They should:


2-20


assess the performance of

individual centres and, as part of

the strategy for town centres,

indicate their potential for

change, improvement or stability;

aim to safeguard and support

existing town centres and other

retail facilities, such as local

centres and village shops, where

they are serving the local

community well;

identify sites, including those

suitable and available within a

reasonable timescale, for new

retail and commercial leisure

developments within town

centres, and, if appropriate, at the

edge-of-centre;

include criteria based policies to

provide guidance to developers

who may propose new

developments out with the

framework of preferred sites in the

development plan, and indicate

how such developments will be

assessed; and

include related policies for

transport, car parking and for

improving the environmental

quality of town centres, retail and

commercial leisure developments,

and specify design criteria and

standards against which proposals

will be judged, including those in out-

of-centre locations.

Local plans may also distinguish between

primary and secondary frontages in town

centres, when different policy

approaches are being applied. In each

case the plan should set out clear

policies for development control

decisions on retailing and related

development. Plans should also show

any areas for special initiatives to

improve accessibility for people with

disabilities, and for shoppers with prams

or pushchairs.

2.8.8 Monitoring of Retail Developments

Plans should be soundly based on up-to-

date information. Retailing policies and

proposals in development plans should

therefore be based on a factual

assessment of retail developments and

trends. Data on the quality, quantity and

convenience of retailing in the area and


2-21


the potential capacity for growth or

change in the shopping centres will

be important to ensure plan policies

and proposals are properly informed.

Where appropriate, authorities should

maintain time series data on shopping

patterns set up by former authorities.

The private sector should also be

encouraged to help provide

information. A useful source of data is

the publication Retail Inquiry (Central

Statistical Office); Scottish results are

produced biennially, and are

reported in the Scottish Economic

Bulletin (available from The Stationery

Office).

The validity of any assessment will

depend particularly on the quality,

quantity and relevance of the

information obtained. It is therefore

important for an authority to ensure that

data are as comprehensive, accurate,

and up-to-date as possible. Relevant

data might include population change,

economic growth or decline, retail floor

space, shop counts, expenditure

patterns, car parking, accessibility,

pedestrian flows and consumer attitudes

2.9 SUMMARY

From the above, it can be summarized that the

Sequential Approach:

i. was to address the issue of property

overhang due to speculation;

ii. was to limit urban expansion into the

countryside, thereby protecting

agricultural and environmentally sensitive

areas;

iii. received strong political suppot from the

National Government right to the Local

Government;

iv. had pre-requisites to make the

Approach a success, foremost being a

good and integrated public transport in

all city centres;

v. The location and size of brownfield sites

in the inner city was vital in order that the

approach be offered as an option for

development locations;

vi. Detailed guidelines and data on each

potential site are in place in order that

these be offered as first choice to the

developers;

vii. The approach be legislated in the

Structure Plan and Local Plan system.


3-1


In order to see whether the Sequential

Approach fits into the Malaysian Planning and

Development scenario, the urban issues faced

in Malaysia must first be identified. The

following are the current issues faced in the

Malaysian urban scenario.

3.1 TRENDS AND PROBLEMS OF URBAN

GROWTH AND DEVELOPMENT IN

PENINSULAR MALAYSIA

Malaysia officially became an urban nation in

1991 when 51 percent of her population

resided in urban areas. The percentage now

stood at around 65 percent and is expected to

increase to 75 percent by 2020. However, upon

closer inspection, most of these growths are in

at fringe of traditional main urban areas,

mainly in the newly opened up suburbs. This

sections looks at urban growth in two main

metropolitan areas in Peninsular Malaysia,

namely the Kuala Lumpur Metropolitan,

Georgetown Metropolitan ,

3.1.1 KUALA LUMPUR METROPOLITAN AREAS

The most prominent case of rapid

growth of the suburb is in the Kuala

Lumpur Metropolitan Area. While the

rapid growth of Kuala Lumpur is

undeniable, a closer look of population

data, especially those starting from the

1980 Census showed that most of the

urban growth in Klang Valley for the

past two decades occurred outside of

the city limit of Kuala Lumpur, i.e. the

suburbs. Kuala Lumpur population

growth was adversely affected by this

development.

Kuala Lumpur’s population growth rate

between 1980 to 2000 was much less

than that of Malaysia. This is in contrast


3-2


to its rate of growth since its

establishments more than 100 years

ago where the rate of population

increase for Kuala Lumpur was much

higher than the nation’s average. In

between 1970 to 1980, population

growth rate of Kuala Lumpur was at

3.50 percent where as Malaysia’s

average was 2.30 percent.

In between 1980 to 1991, the

population of Kuala Lumpur grew by

only 2.00 percent per annum, smaller

than that of Malaysia which stood at

2.64 percent. During the same period,

the State of Selangor grew by 4.33

percent per annum. Most significantly,

the growth came from districts

surrounding Kuala Lumpur with the

highest in Ulu Langat (where Kajang,

and Semenyih are located), followed

by Gombak and Petaling districts

(comprising of Petaling Jaya, Subang

Jaya and Shah Alam).

The trend of suburbanization is more

evident between 1991 and 2000.

During this period, the population

growth for Kuala Lumpur was only 1.39

percent per annum, about half the

annual growth rate of 2.60 for Malaysia.

Since the 2.60 is much closer to natural

population growth rate, the figure of

1.39 percent indicates Kuala Lumpur

experienced a net out migration of its

population during that period.

Based on the inter-state migration in

between 1986 to 1991, Kuala Lumpur

indeed had a net migrant of –3.7

percent which was the second highest


3-3


net out migration after Perak at -3.8

percent. In comparison, Selangor had

a net migration of 6.8 percent during

the same time period.

Most of the people who migrated out

of Kuala Lumpur moved into Selangor.

Actually, more than one third of out of

state migrants into Selangor between

1986 and 1991 were from Kuala Lumpur

(109,334 of the 290, 00 in migrants).

During the same census, 56,045 people

moved from Selangor into Kuala

Lumpur. Thus, for every resident that

Kuala Lumpur gained from Selangor, it

lost two of its people to the state. The

imbalance was even higher in the 2000

census.

During the five years period of 1986-

1991, almost half of Kuala Lumpur

outmigration to Selangor were to Ulu

Langat District, followed by Petaling

and Gombak Districts. Due to the high

migration rates, the Petaling District

which was only a third the size of Kuala

Lumpur in 1970 is now about the size of

the city; Ulu Langat grew from only 20

percent of the size of Kuala Lumpur to

about 75 percent of the size of the

capital in the same 20 years period. This

has led to the expansion of urban built-

up in Klang Valley. This urban sprawl

trend which started in 1980 is expected

to continue in the future as more lands

are opened up in the Klang Valley and

better transportation infrastructures are

put in place. The trend of urban sprawl

of Klang Valley is vividly shown by Ahris

Yaakop in Figure 3.1.


3-4


Figure 2.1: Urban Built-up Area Morphology in

Klang Valley

Source: Ahris Yaakup et.al (UTM) National

Planning Seminar 21 November 2005

This urban sprawl phenemona

has led to the depletion of

green areas in KLMR as shown in

Table 3.1 below. What is

worrying is that the loss of green

space was actually much

higher than the population

growth in KLMR which indicates

unsustainability of present urban

development. Thus, new

planning paradigm has to be

found to arrest this situation.

Year 1988 Year 1990

Year 1996 Year 1994

Year 1998 Year 1999

Year 2002 Year 2004


3-5


Table 3.1. : Percentage of Green Area in Kuala

Lumpur, 1988 to 1998

Source: i) BKWPPLK, (2001) ii) Ahris Yaakup

et.al (UTM)

Figure 3.2: Urban Green Changes in Klang

Valley

Source: Ahris Yaakup et.al (UTM) National

Planning Seminar21 November 2005

Year 1988

Year 1999


3-6


3.1.2 Urban Development Trends of Penang

and Georgetown

City of Georgetown

and its surrounding

area is the second

largest metropolitan

area in Malaysia.

The dominance of Georgetown as the

main urban centre of Penang and the

northern region was very evidenced

ever since the founding of the city a

few centuries ago.

Things began to change since the

1980s, however. The attractiveness of

Georgetown and its dominance has

started to wane off. Due to the high

cost of living in the city as well as the

relative attractiveness of new

development outside the city, many

people started to migrate out of

Georgetown to newly opened areas.

Districts outside of

Georgetown started

to attract more

people and grew

very rapidly since the

1980s.

Table 3.2 shows at

the macro level the

population trend in

the state of Penang.

One notable change

is the reduced

importance of the

Timor Laut district, where Georgetown is

located, as the centre of population

concentration in the state. The

percentage of the state population

living in Timor Laut was reduced from

almost half (48%) in 1970 to only 34

percent in 2000.

On the other hand, Seberang Perai

Tengah (where Butterworth and Bukit

Mertajam are located), Seberang

Perai Selatan (where Batu Kawan is

located) and Barat Daya had

increased their shares of the state

population. The trend here shows that

districts surrounding the Timor Laut

District, i.e., Barat Daya, SP Tengah and

Selatan had increased their shares of

the population while Timor Laut’s share

had decreased. This may be one

indication of urban sprawl in the state.


3-7


Table 3.2: Population Ditsribution by District, Penang State, 1970-2000

District 1970 1980 1991 2000

Population % Population % Population % Population %

SP Tengah

117,475

15.19

161,975

17.98

236,270

22.20

294,051

23.88

SP Utara

161,524

20.89

199,449

22.14

224,647

21.11

243,938

19.81

SP Selatan

63,626

8.23

71,558

7.94

84,771

7.97

117,722

9.56

Timor Laut

369,991

47.84

391,400

43.45

395,714

37.18

416,369

33.82

Barat Daya

60,711

7.85

76,390

8.49

122,764

11.54

159,129

12.93

Pulau Pinang 773,327 100.00 900,772 100.00 1,064,166 100.00 1,231,209 100.00

Source: Statistic Department Malaysia, 2005 cited by Zuwairi, 2006

In terms of population growth rates, the average annual growth rate (AAGR) for

Barat Daya, Seberang Perai Tengah and Selatan were rather high since 1970

(Table 3.3). On the other had, the AAGR for Timor Laut was below 1 percent

per year during the three decades. Overall, these three districts grew more than

four times faster that Timor Laut.

Table 2.3: Average Annual Growth Rate by District, Penang State, 1970-2000

Average Annual

growth Rate

District 1970-1980

(%)

1980-1991

(%)

1991-2000

(%)

NEGERI PULAU PINANG 1.52 1.51 1.62

Seberang Perai Tengah 3.21 3.43 2.43

Seberang Perai Utara 2.10 1.08 0.91

Seberang Perai Selatan 1.17 1.54 3.64

Timur Laut 0.56 0.09 0.56

Barat Daya 2.29 4.31 2.88

Source: Statistic Department 2005 cited by Zuwairi 2006


3-8


0

1

2

3

4

5

Tahun

Pu

rata

Kad

ar

Pert

um

bu

han

SPT 3.21 3.43 2.43

SPU 2.1 1.08 0.91

SPS 1.17 1.54 3.64

TL 0.56 0.09 0.56

BD 2.29 4.31 2.88

1 2 31970-1980 1980-1991 1991-2000

Figure 3.3: Average Annual Growt Rate by

District, Penang State, 1970-

2000

Source: Statistic department 2005 cited

by Zuwairi 2006

These urban tends are also evidenced

in other urban areas in Malaysia

including the Johor Bahru Metroplitan

areas as well as smaller cities such as

Ipoh, Seremban and Melaka.

Urban sprawl is not a new issue. It is an

impact of development from the past

that has occurred over a hundred

years. Urban development started

since the first century when people

started to develop their skills in built

environment to enhance their way of

life and their needs. The process of

urban development subsequently grew

bigger. This process took a long period

of time. During the process, there were

a lot of changes in the morphology of

the city and many problems occurred

in the long process of

urban development.

Researchers of urban

studies have found the

triggers that started the

changes of the urban

morphology and these

were urbanization and

urban growth which led

to the urban sprawl

phenomenon in general.

Decade after decade,

the population of the city

grew and the difference

between urban and rural population

becomes more obvious. The population

in the city is higher than before while

the rural population declines.

From all the definitions reviewed,

urbanization is structured by two major

elements, namely, population and

economy. Both elements can explain

urbanization clearly. Demographic

change in an urban area generally will

cause urban space expansions. This is

due to the demands generated by the

population. Since business activities

have become the main activity in

central urban cores, the population

actually earns higher income. Since the


3-9


land value and cost of living are higher

in the urban cores, the population then

consequently moves outside the urban

cores to the periphery where there is

cheaper land. This will lead to urban

explosion and expansion.

According to John Butler and Patrick

Grookes (1973), the pull factor is a

positive attraction of cities, derived by

the concentration of population and

activities. These concentrations of

activities offer employment, services

and guarantee better living compared

to those who live in the rural areas.

These activities are like magnets which

attract people to migrate into the town.

The basis of urban growth is that, an

urban area or a town doest not exist on

its own. The largest urban areas today

such as London originated from small

concentrated villages. Even Johor

Bahru and Kuala Lumpur were formed

and structured from small villages. As

time goes by, the number of total

population will then increase and the

economic structure will get more

complex. Due to the complexity of the

economic structure, more people

migrate and populate to these areas.

Consequently, these areas will face

rapid urbanization and expansion of

the urban area.

3.1.3 Issues of Urban Sprawl

Critics of sprawl argue that urban

expansion encroaches excessively on

agricultural land, leading to a loss of

amenity benefits from open space as

well as the depletion of scarce

farmland resources. The critics also

argue that the long commutes

generated by urban expansion create

excessive traffic congestion and air

pollution. In addition, growth at the

urban fringe is thought to depress the

incentive for redevelopment of land

closer to city centers, leading to decay

of downtown areas. Finally, some

commentators claim that, by spreading

people out, low-density suburban

development reduces social

interaction, weakening the bonds that

underpin a healthy society. (Brueckner,

Jan, 2001).


3-10


There are several interconnected

reasons why urban sprawl, a form of

urban growth characterized principally

by low densities and scattered

development, is one of the most

pressing concerns facing cities. At the

forefront of the criticisms levelled at

sprawl are its influence on urban travel

patterns; impacts on service and

infrastructure provision; loss of resource

lands, farmland, and encroachment on

environmentally sensitive areas;

pollution; ecological disturbance; its

influence on urban energy efficiency;

psychological and social costs to

resident populations; and central city

decline.

Sustainability has become a central

theme of our environment, human

development and resource use. The

central idea is that we should use

resources in way that do not diminish

them. Since the term “sustainability”

has been brought into our vocabulary,

one issue emerges and questions

whether our resources are sustained or

otherwise. Economic development

either in the developed country or

developing country has changed the

lifestyle of the nation. The economic

growth and change in society are also

a result of urban development and

urban growth. In this case, we must

understand that urban development

which responds to economics growth

has caused environmental, economics

and social disaster.

Urban development involves the

consumption of numerous natural

resources. Our environment as seen

today, mostly consists of non-renewal

resources. Land and soil are the most

concerned as they are non–renewable

resources. The changes from

agriculture land use to urban use tend

to be permanent and reversible only at

a very high cost. Regarding this, over

the past 20 years, low density

development in the periphery of

European countries and the expansion

of urban areas in the Western Europe

countries have increased over three

times compared to the growth of

population. The rapid urban expansion


3-11


rather than the population growth have

gobbled large amount of land

resources (European Environmental

Agency, 2006).

We can make an assumption on how

much the development or build-up

areas have sealed the land resources

permanently. Edith Lavalle (2002)

explained that sprawl transforms rural

areas into subdivisions, shopping

centre’s, parking lots and many more.

These have changed the face of rural

area from green and peaceful, to

concrete. The rapid expansion of urban

development across the landscapes

also reduces the capacity of soil to

perform an essential function.

Moreover, Sprawl has destroyed

farmland and therefore affected

agricultural productivity and agriculture

land. The land and soil which contain

trees and open space are used to

naturalize the surroundings, keeping the

surface cool. However, since the land

or farmland has been converted to

housing estates and road, the surface

turned into solid surface which caused

the urban heat island phenomena

(European Environmental Agency,

2006).

3.2 SUSTAINABLE DEVELOPMENT

The achievement of the objectives of planning

will not be meaningful if the achievement is

only temporary, and the desired situation once

reached is not sustainable. An important

aspect of planning for growth and

development is hence to ensure that the goals

and objectives are not only achieved but are

also sustainable. Ever since the Earth Summit in

Rio de Janeiro in 1992, “sustainable

development” has been the agenda (Agenda

21)

adopted by member countries in their

planning for their growth and development.

The definition commonly used for “sustainable

development” is “development that

meets the needs of the present

without compromising the ability

of future generations to meet

their own needs. (Brundtland, 1987)


http://en.wikipedia.org/wiki/Sustainable_development

http://en.wikipedia.org/wiki/Sustainable_development

3-12


“Although this definition is more concerned

with the rate of use of resources that will not

enable the resources to be able to be

replenished in the future, “sustainable

development” encompasses sustainability of

economic and social development as well as

of environmental and ecological protection.

It means that developing a better quality of life

now should not reduce the quality, or deprive

the opportunity for a better quality of life for

the future generations. It can also be

expanded to mean that developing a better

quality of life for a sector of society should not

reduce the quality, or deprive the opportunity

for a better quality of life for another sector of

society.

Sustainable development covers a very wide

range of activities. Four key areas have been

identified:

sustainable consumption and production:

changing the way products and services

are designed, produced, used and

disposed of – in short, achieving more with

less

climate change and energy – reducing

greenhouse gas emissions whilst at the

same time preparing for the climate

change that cannot be avoided

natural resources – understanding the limits

of the natural resources that sustain life,

such as water, air and soil

sustainable communities – looking after the

places people live and work, for example,

by developing green, open spaces and

building energy-efficient homes. (UK

Government)

In Malaysia, concerns about sustainability in

development and growth have been

indicated in most of the planning at national,

state and local levels. For example the stated

goal of the National Physical plan is “The

establishment of an efficient,

equitable and sustainable

national spatial framework to

guide the overall

development of

the country

towards achieving

developed nation

status by 2020”,

and objective II

states “To optimize

utilization of land and natural resources for

sustainable development.”

However, it is a different matter when it comes

to the implementation of this planning

intention and to the day-to-day decision-

making in the process of development and the

approval of development projects, such as the

de-gazetting of forest reserves, the cutting of


3-13


hill lands, and the conversion of agricultural

land, recreational open spaces and water

catchment areas to building land, with

subsequent undesirable impacts such as

flooding, soil erosion, land instability, loss of

agricultural products, loss of open spaces and

insufficient water supply.

Urbanization and the resulting urban sprawl

have serious implications on the goals of

achieving sustainability. Amongst the impact

of urbanization and sprawl on the issues of

sustainability are outlined below.

3.2.1 Impact of Depletion of Natural Land

Resources.

Edits Lavalle (2002) explained that sprawl

transforms rural areas into subdivisions,

shopping centres, parking lots and many

more. These have changed the face of

rural area from green and peaceful, to

concrete. The rapid expansion of urban

development across the landscapes also

reduces the capacity of soil to perform

an essential function. Moreover, sprawl

has reduced farmland, thus affecting

agricultural productivity and agriculture

land. The land and soil. Which surface

cool. However, since the land or

farmland has been converted to housing

estates and roads, the hard surfaces are

contributors to the urban heat island

phenomena (European Environmental

Agency, 2006)

a. Urban Heat Island Effect

Urban heat island is a metropolitan

area which is significantly warmer

than its surroundings. As population

centers grow in size from village to

town to city, they tend to have a

corresponding increase in average

temperature (Wikipedia, 2006). The

degree of the temperatures

depends on the size of the

metropolitan area. The bigger the

metropolitan areas are, the

temperature will be higher

accordingly. The heat is due to the

urban material - concrete, steel,

An urban heat island (UHI) is a metropolitan area

which is significantly warmer than its surroundings.

The temperature difference usually is larger at night

than during the day and larger in winter than in

summer, and is most apparent when winds are weak.

The main cause of the urban heat island is

modification of the land surface by urban

development; waste heat generated by energy usage

is a secondary contributor. As population centres

grow they tend to modify a greater and greater area

of land and have a corresponding increase in average

temperature. Partly as a result of the urban heat

island effect, monthly rainfall is about 28% greater

between 20-40 miles downwind of cities, compared

with upwind.


3-14


Figure 2.1 Population Densities and Energy

Consumption

Selected World cities

glass, etc -which seal the land and

nature to solid surface. The loss of

soil or land resources to

development also reduces the

capacity for the soil to act as

carbon sink, to reduce dangerous

gases which are the major factor of

global climate change.

Furthermore, rainwater which falls

on the sealed areas (built-up area)

is heavily polluted by the

transportation agent such as tires,

dust and chemicals in concrete

and building materials. Running

water now contains heavy metal. It

has been polluted and washed into

the major drainage system and

river, thus, pollutes the whole

hydrological system. This will lead to

ground water pollution and affect

the water quality (European

Environmental Agency, 2006).

b. Increasing Consumption of Energy

A further consequence of sprawl

that consumes land and reduces

population densities is the growing

consumption of energy. Figure 2.2

shows 17 cities around the world

that reflect a consistent link

between population densities and

energy consumption. The lower

population densities and high rate

of energy consumption

characterize the sprawl

phenomenon

c. Transportation

Another consequence of urban sprawl is

the impact on transportation.

Transportation is also related to energy

use. However, the rate of energy

consumption in cities depends on

numerous factors including the nature of

the rail and road network, level provision

of mass transportation systems and the

proportion between private and public

transport. An increase in private

transportation relates to energy

consumption which in turn leads to an

increase in the emission of carbon

dioxide to the atmosphere. If cities

provide poor public transportation

system, the use of private car increases

and energy consumption increases

(European Environmental Agency, 2006).


3-15


According to Edith Lavalle (2002), the

increase in use of private automobiles will

lead to the construction of new highways

and other road infrastructures to satisfy

the growing demand. However, this will

only cause further traffic congestion as a

result of the use of private automobiles

that will increase over time.

d. Loss of Natural and Protected Areas

Urbanization also leaves an impact on

natural resources. The natural

environment is a vital part of the

ecosystem functions that performs

including the production of food, habitat

for natural species, recreation, water

retention and storage. Land use

conversions from forest reserve to new

development harm the natural

ecosystem. The immediate impact of

sprawl is the lost of agriculture and

natural land or exploitation of forest,

wetland, and other habitats. These

inevitably will also give an impact on the

quality of life and human health such as

poor air quality and high noise level.

Sprawl is also closely associated to urban

transportation and green house gas

emissions which have major implications

on global warming and climate change,

which has brought about flooding, acid

rain, erosion and landslides.


3-16


e. Socio – Economic Impact

From the social point of view,

urbanization and sprawl has generated

social segregation of according to

income. Unlike the middle and high

income groups, people in the lower

income group cannot afford to own

private automobiles. The middle and high

income groups are the ones who move

out of the urban cores to avoid the

expensive cost of living and the

congestion. This has caused residential

segregation between those in the urban

cores and the suburban areas.

From an economic point of view,

urbanization and sprawl has had an

impact on the increase in household

spending on commuting from home to

work over longer distances, the cost to

business of the congestion in sprawled

urban areas with inefficient transportation

systems and the additional costs of the

extension of urban infrastructures

including utilities and related services

across the urban region (European

Environmental Agency, 2006).

3.3 URBAN PROPERTY TRENDS

As the main goal of the use of Sequential

Approach in the UK was to address the

overhang in the property market due to

speculation, the study also undertook to

examine the property trends and market in the

two cities under study.


3-17


3.3.1 Overview of Penang Property Market

Penang Island is witnessing a number of

very large scale mixed development

schemes which are either planned or

on-going, which when completed will

offer a large amount of residential and

commercial space into the market.

There have variety of property

products, many of which are intended

to be attracting foreign interest and

high net worth individuals. It has been

announced that Penang is the second

most popular place for Malaysia My

Second Home purchasers, after Kuala

Lumpur.

Amongst the large scale projects are:-

i. City Centre

Penang Global City Centre

(PGCC) – 105ha (260 acres)

at the Penang Turf Club in

Batu Gantung is expected

to take 15 years to

complete. It will comprise of

condominiums, service

apartments, retail,

conference centre, two 5

star hotels, cultural arts

centre etc. The estimated

development cost is at

RM25 b. The Developer is

Abad Naluri a subsidiary of

Equine Capital Bhd.

Penang Global City Centre


3-18


Penang Times Square – a

RM1 bil integrated

development, under

construction by Ivory

Properties Group on 5.2ha

(13 acres). It will have a 4

level (300 retail units) retail

mall, 2 blocks of 20 storey

with 416 units and 360 units

of service apartments,

offices and 5 star 400 rooms

hotel. In addition there will

be a 0.8ha (2 acres) urban

square for activities and a

monorail station.

ii. Bayan Lepas

Setia Pearl Island – RM800mil

township on 49ha (122

acres) located 2km from

Bayan Lepas town.

Developer is SP Setia.

Queensbay Mall – a revived

water front retail project on

29.5ha (73 acres) at the

coastal area of Bayan Baru

and is newly completed.

iii. Tanjong Tokong

Warisan Tanjung and

Tanjung West – a 27.5ha (68

acre) mixed development

along the coast at Tanjong

Tokong. Developer is UDA

Holdings Bhd. This is a

RM750 mil redevelopment

project which has stalled for

12 years. Warisan Tanjung is

on 12.5 ha will have 1,224

low cost flats and

commercial units. Tanjung

Penang Times Square


3-19


West is on 21.6 ha reclaimed

land will have 1,224

medium-cost and luxury

residential units and

commercial units. This

appears to be the only large

scale development catering

to low cost and medium-

cost purchasers.

iv. Gurney Drive

Seri Tanjung Pinang – a 329

ha master planned

development, north of

Gurney Drive. Phase 1

comprising 325 units of 2 ½

storey terrace houses (Ariza

courtyard) together with a

marina and 160 units of

service apartments, 96 ha of

land scaped parks. Phase 2

will be made up of 296 ha

with a cluster of islands

linked by a series of bridges.

Gurney Paragon - A mix

development incorporating

a shopping mall, high-end

condominiums to be built on

4.1ha (10.2 acres) along

Gurney Drive. Total gross

development value of

RM1bil. Developer is Hunza

Properties Bhd.

Many of the large scale mixed-

developments are located in the city or

near to the city. The high land cost in

these areas have resulted in private

sector developers going for high

density developments many of which

are targeted for high end purchasers.

Land cost in the city and prime areas

outside the city centre can fetch from

RM100psf to RM150psf, for small sites of

0.8ha (2 acres) and less.

Residential developments on the Island,

close to the city are spread out in

various locations with landed residential

types concentrating in upmarket areas

such as Batu Ferenghi, Bukit Jambul,

Tanjung Bungah. These new launches

are high end with most of them offering

units at more than RM1.0mil. Even

terrace houses launched in these areas

are large units and priced at more than


3-20


half a million ringgit each.

Condominium developments on the

Island close to the city are varied

comprising of;

super-condominiums, priced above

RM1 million per unit and are large

units generally more than 2,000

sq.ft.,

medium-high range, generally

above RM350,000 per unit, with sizes

below 1,500 sq.ft.

medium-low range, generally

below RM150,000 per unit, with sizes

below 1,000 sq.ft. and generally are

Malay Reserve title.

The super-condominiums are located in

upmarket addresses in the city centre

with sea front view, whilst the lower

medium-range condominium can be

found away from the city centre in

areas such as Jelutong, Bayan Lepas,

Relau etc.

Generally the property development

scene on the Island is active and there

seems to be no problems with

developers undertaking projects in the

city as well as out of the city. Although

there are times when the take-up is

slow, demand for properties on the

Island, in city locations or close to the

city, is generally good, as Georgetown,

Bayan Lepas, Jelutong, Bayan Baru,

Bukit Jambul etc are areas of high

employment.


3-21


Table 3.3: Selected High-End Landed Residential Launches Penang Island

Hill top Villas

(Asia Green)

Batu

Ferrenghi 23 units

3 storey & 4st villas

RM2.8mil +

land area : 418sm–1,200sm

Asia Hills

Courtyard Villas

(Asia Green)

Bt. Jambul 50 units

land area : 279sm–649sm

RM1.5mil +

Guarded

Sierra Vista

(IJM Properties) Bt. Jambul

32 units (semi-d)

10 units (studio)

3 storey semi-d

(strata) and studios

2,840 sq.ft. and 700sq.ft.

RM833,000 (semi-d)

Moonlight Bay Bt. Ferenghi 70 units (villa)

20 units (condo)

15 acres

4 storey villas and

2 cond units

gated

land area : 2,350 sq..ft.–6,550 sq.ft.

build-up : 3,800 sq.ft.–

5,500 sq.ft.

RM2,188,000 + (3,800 sq.ft. +)

Setia Pearl Island

(SP Setia)

291 +

267 units

(3 st. terrace)

112 acres

291 units (Life)

3 storey terrace

2,300 sq.ft.–

2,800 sq.ft.

267 (Aroma)

3 storey terrace

207 units (semi-d)

207 semi-detac

3 storey super link

4 storey villa

RM680,000–RM750,000 + terraces

RM1.1mil +

semi-detac

bungalow

RM2mil +

Alila

(Hunza

Properties)

Tanjung

Bungah 418 units

condominium and bungalow

guarded & gated

RM314,000 to

RM888,000

Desa Ara

(Taimima) Sungai Ara 11 units

2 storey terrace

build-up : 2,500 sq.ft.–

3,000 sq.ft.

RM618,000 and

RM698,000 +

Shamrock Beach

(OJY)

Tanjung

Bungah 62 units

10 acres

3 storey terrace

build-up : 3,100 sq.ft. +

RM850,000 +


3-22


Table 3.4: Selected Condominium Launches, Penang Island

i D Regency

(i deal, Cygal) Bt. Gambier

Min. 322,500

Max. 429,500

1,200, 1,388

1,550 sq.ft.

The Spring

(IJM Properties)

Bt. Jelutong

Express

925 sq.ft.–

1,281 sq.ft.

(for registration)

Nautilus Bay

(IJM Properties)

Jelutong

promenade

78 units

3 storey

2,600 sq.ft.

(for registration)

Platino

(IJM properties)

1,819 sq.ft.

(luxury)

Seaview @ Harbour Place(P J D)

670 sq.ft.–

1,785 sq.ft.

RM144,750 +

Gurney Paragon

(Hunza Properties) Gurney Drive

2 blocks high end condo and mall of 1mil sq.ft.

2 towers of

73 units

and 147 units

2,810 sq.ft.–

4,629 sq.ft.

Infinity

(Hunza Properties) Tg. Bungah

119 units

condominium

2 blocks of

36 and 35 storeys

4,800 sq.ft.–

8,200 sq.ft

Kelawei View

(Encony Devt.) Jln Kelawei

4,300 sq.ft.–

6,400 sq.ft.

super condo

Hillcrest Residences

(Bt. Jambul Condominium) Bt. Jambul

5.4 acres

65 units – Tower 1

79 units – Tower 2

2,200 sq.ft.– 7,100 sq.ft.

RM719,290 to RM2,776,500

Bay star

(C P Group) Bayan Lepas

160 units

1,560 sq.ft. 1,800 sq.ft.

2,250 sq.ft 1,700 sq.ft.

2,490 sq.ft

RM385,800 to RM1,479,000

Mutiara Heights

(Uda bina) Jelutong

RM108,000 to RM154,000

(bumi units)

800 sq.ft.

Vista Gambier

(Lereng Wira) Bt. Gambier

144 units intermediate 117sm

RM268,000 (lowest)

RM324,000 (highest floor)

Seri Nilam

(Koperasi Tunas Muda)

apartment

RM152,000 – RM156,000

Pangsapuri Saujana

(Koperasi Tunas Muda) Bayan Lepas

135 unit

RM135,000

Pangsapuri Relau

(Koperasi Tunas Muda) Relau

NA

The View

(Ivory Properties)

Penang Bridge

area

2,068 sq.ft. (i)

2,088 sq.ft. ©

Cert. of Fitness just received


3-23


Penang’s property market is also

buoyed by large investments in major

infrastructure projects currently

under construction or announced

which includes;

Penang Outer Ring Road

(PORR) a 17km, four-lane dual

carriageway from Tanjung

Bungah to Penang Bridge on

the Island. The value is

estimated at RM1.02bil.

Integrated transport hub at

PGCC; proposing a RM1.1bil

monorail link which is part of the

NCER proposal.

Second Penang Bridge is a

24km bridge from Batu Kawan,

Seberang Perai to Batu Maung

on Penang Island. The

estimated value is RM3.0bil.

An estimated RM7.8bil is going to be

invested into improving Penang’s

urban transportation system.


3-24


3.3.2 Property Transactions

The total units of property transactions

(all types of properties) for the whole

State ranges from 13,903 in 2003 to

17,380 in 2006 (although in 2004 higher

units were transacted at 20,857).

Penang’s property transactions are

dominated by the residential sectdor

where over the last 4 years between

74% to 79% of the total number of

property transactions in the State are

for residential properties.

Table 3.5 : Volume of Property Transactions in

Penang

2003 2004 2005 2006

Residential 13,177 19,205 18,011 15,439

All sectors 17,528 24,292 23,840 20,877

Source : Property Market Reports, Ministry of

Finance

Penang has an active property market,

much of it is concentrated on the

Island, specifically in Timur Laut District.

The residential property market in

District Timur Laut is active and

accounted for 6,103 residential

transactions out of 15,439 total

residential transactions in the State that

is 40% of total residential transactions. It

is the most active district in Penang and

in terms of value accounts for 51% of

State’s total value of residential

transactions.

The District also is active in the

commercial sector and accounts for

34% of total number of commercial

transactions in the State. Again this

District is the most active and in terms of

value of commercial transactions its

market share is even higher at 50% of

the State’s total value of commercial

transactions.

The following table shows the high level

of activity in the District for the

residential and commercial sectors.

Table 3.6 : Property Transactions in Timur Laut

District, Penang 2004-2006 Residential

transactions

Commercial

transactions

RM

mil Number RM mil Number

2004 1,631.00 7,927 256.84 646

2005 1,486.42 6,986 328.77 766

2006 1,394.15 6,103 395.05 692

3.3.3 Property Price Trends in Penang

a. Most popular price range,

RM100,000 – RM150,000

Over the past 4 years, transactions of

residential properties in Penang shows

that there is strong demand for

properties priced from RM100,000 to

RM150,000 which accounts for the

highest proportion of transactions that is

22% of the total residential transactions

in the State. The next price range of

RM50,000 to RM100,000 and RM150,000


3-25


– RM200,000 are the next most popular

price band. This shows that, there is still

strong demand for lower end

properties. From the

table above, some

65% of residential

transactions registered,

were those priced less

than RM200,000.

However, the above

price ranges are very

general as they are

reflective of the whole

State of Penang which

includes the mainland.

Prices on the mainland

are lower than on the

Island and therefore will

bring down the average price per

transaction of residential properties.

Table 3.7: Most Transacted Price Range Of Residential (Top Residential Price Range)

Price Range 2003 2004 2005 2006

RM25,000-RM50,000 7% 9% 10% 7%

RM50,000-RM75,000 18% 15% 14% 14%

RM75,000-RM100,000 18% 16% 15% 15%

RM100,000-RM150,000 23% 21% 21% 22%

RM150,000-RM200,000 12% 13% 13% 14%

RM200,000-RM250,000 6% 8% 8% 8%

RM250,000-RM500,000 12% 13% 13% 13%

RM500,000-RM1mil 3% 3% 3% 4%

Source : Property Market Report, Ministry of Finance


3-26


b. Strong Average Price Change For “Landed” Type Properties

The highest average price change were for double storey semi-detached houses

followed by terraces and single storey semi-detached houses.

The previous table showed that condominiums and flats accounted for 70% of total

residential transactions. In spite of the good demand, the average prices of

condominiums and flats have not shown any incremental. This could be attributed to

the large supply in the market (see next section on stock and future supply). Flats,

condominiums and low cost flats (all strata type residential) in the District account for

84% of existing supply whilst future supply shows the bulk are also these strata type

residential with minimal new supply of “landed” residential.

Table 3.8 : Average price of residential properties by type

Type of

Residential

2003

RM

2004

RM 2005 RM

2006

RM

Trend

2000-2006

% Change

2000-2006

1st terrace 275,300 281,700 270,900 313,700 14%

2st terrace 378,300 397,600 431,800 430,200 14%

1st. semi-d 342,800 407,900 393,900 375,500 10%

2st. semi-d 516,300 550,100 567,300 626,300 21%

Detached 1,067,100 1,055,900 953,200 1,014,600 -5%

Condominium 261,700 250,900 257,000 258,300 -1%

Flat 107,900 105,000 105,700 107,500 -

Low cost flat 58,400 56,700 59,000 59,600 2%


3.3.4 Popular Property type in Penang

For the District of Timur Laut there are

two very significant residential types

most popularly transacted and they are

flats and condominiums which together

constitute 69% of total residential

transactions in 2006 in the District. This

shows that purchasers in this District are

very acceptable to strata type

residential properties. It is to be noted

that flats are more popular than


3-27


condominiums as the flats are priced

much lower. The average price per

transaction for condominiums is

RM260,000, flats are RM107,000 per

unit. “Landed” type residential

properties account for only 2% to 6%

each of the total residential

transactions in the District, that is 1

storey terraces at 3%, 2 storey terraces

at 6%, semi-detached at 6% and

detached at 3%.

This shows that “landed” type

residential properties have limited

appeal (because of the price factor).

The average price per transaction for 2

storey terraces is RM430,000 whilst 1

storey terraces are at RM313,000 per

unit, semi-detached at RM626,000

and detached at RM1,014,000. Flats

and condominiums are affordably

priced and therefore for the majority of

the populace would be more

attractive over landed properties.

Table 3.9 : Most popular type of residential

property

Type of

Residential 2003 2004 2005 2006

Vacant land 0.8 1% 1% 3%

1st terrace 3% 2% 3% 3%

2st terrace 7% 5% 6% 6%

1st. semi-d 1% 2% 1% 2%

2st. semi-d 4% 5% 6% 4%

Detached 3% 3% 2% 3%

Condominium 19% 22% 21% 25%

Flat 51% 50% 49% 44%

Low cost flat 9% 9% 9% 9%

Source : `Property Market Report, Ministry of

Finance

3.3.5 Property Supply in Penang

The District of Timur Laut accounts for

the most number of residential stock

(existing supply) that is 41% of the total

existing stock in Penang, (the next

highest concentration of residential at

23% is in the District of Perai Tengah).

There is a high concentration of strata

properties in this District (District of Timur

Laut) at 85% in 2006 (whilst in the District

of Perai Tengah, strata properties such

as condominiums, flats, low cost flats

accounts for only 37% of the existing

stock).


3-28


Incoming supply (that is projects under

construction, launched projects) in the

District of Timur Laut, showed the same

trend (albeit even higher) as the existing

stock, where 94% are for strata properties

made up of flats (78%), condominiums

(12%) and low cost flats (4%).

From the foregoing secondary data, the

District Timur Laut encompasses a large

concentration of strata type residential

properties and this trend is continuing in

the future. In Penang, the bulk of the “landed”

type residential are located in Seberang Perai

that is Seberang Perai Utara, Tengah and

Selatan.

Table 3.10 : Large Supply of Flats And Condominiums, Timur Laut District, Penang

Existing

Residential Stock Breakdown of Property Type

Dist. Timur Laut Condominiums Flats

Low

cost

flat

Terraces (as a comparison)

2004 115,387 17% 53% 15% 7%

2005 120,836 18% 52% 14% 6%

2006 122,874 19% 52% 14% 6%


3.3.6 Property Overhang

The NAPIC (Pusat Maklumat Harta

Tanah Negara) Q1, 2007 report, states

that the overhang of residential units in

Malaysia have increased from 25,331

units in Q4 2006 to 26,045 units in Q1,

2007. Most of these overhang units

have been in the market for more than

24 months.

Penang’s overhang situation is amongst

the lowest with some 433 residential

units of overhang. Most of these units

are located in Sebarang Perai and

District Barat Daya comprising of

terraces, condominiums, apartments

and some detached units. There were

no overhang shop units or industrial

units in District Timur Laut according to

the NAPIC Q1, 2007 report. The

incident of overhang in Georgetown

and its periphery is therefore a non-

issue.


3-29


3.3.7 Estimates of Land Values in George

Town

The table below shows the estimates of

land values in key areas in the city and

outside the city centre for both

commercial and residential sites.

Table 3.11 : Estimates of Land Values, George Town

RM psf

1ac to 2ac

CITY CENTRE

- Around KOMTAR areas

(Jln Macalister, Jln Maxwell)

- Jln Burma area

- Jln Hj. Ahmad Shah area

- Lebuh Light, Lebuh Pantai,

Lebuh Chulia areas

- Gurney Drive areas

Commercial

Commercial

Commercial

Commercial

Commercial

230 – 250

230 – 250

200

180 – 200

200

OUTSIDE CITY CENTRE

- Around the Penang Global

City Centre areas

- Jln Contonment, Ayer Raja

road areas

- Bagan Jernal

- Pulau Tikus

- Jelutong

- Tanjong Tokong

- Tanjong Bungah

Commercial

Residential

Residential

Residential

Residential

Commercial

Residential

Commercial

Residential

Residential

100

100

150 – 180

150

150

60 – 70

50

100

100

50

Outside of Georgetown, large tracks of land available for township development would be in

Balik Pulau. Here the lands are estimated at RM10 psf.


3-30


3.3.8 Inference for Property Development in

George Town

Property development in Georgetown

and its periphery that is Bayan Lepas,

Bayan Baru, Jelutong, Bukit Jambul,

Tanjong Tokong, Tanjong Bungah, Batu

Ferrenghi etc is still very active and are

favoured by developers. Most

developers would have conducted

some market research to ascertain

what type of products, price, target

market their proposed development

would be geared for. Developers

would have tabulated the

development mix, number of units for a

particular site based on planning

requirements pertaining to plot ratio

and density. Thereafter they would

conduct a feasibility study to ascertain

whether their proposed development is

profitable. Sensitivity analysis would be

carried out and if the necessity arose,

the developer would appeal for some

concession from the local authority so

that the proposed development is

more viable.

One of the key factors which

determines the profitability of any

development is the land price.

Depending upon the location, if the

land is purchased at too high a price, it

would be difficult to make reasonable

profit for a particular development.

However if a developer has a strong

brand name and image, they would

be able to set the prices of their

property products above the market,

although most developers would not

be able to do this especially if the

location is not a prime one.

For Penang Island, there would be no

problems with developing on brown

field sites in George Town, as

developers here are actively

developing in the city as well as

periphery areas around the city centre.

However issues which would probably

concern the developers would be the

land price, plot ratio and other

authority requirements such as car

parks, set back, surrender for roads etc

which would have an impact on the

developable floor space cost of

development and the gross

development value.


3-31


3.4 OVERVIEW OF SEREMBAN PROPERTY

MARKET

3.4.1 Introduction

The Seremban property development

scene is currently predominantly made

up of medium to large residential on-

going townships and new shopoffice

developments. In the District of

Seremban within a 10km radus of

Seremban town, there are some 12

new on-going housing developments

ranging from medium size

developments to larger ones spanning

350 acres to 1,500 acres. Seremban’s

residential township developments

spread over a wide area and shows a

tendency towards leap frog type

development.

Table 3.12: Selected On-going Residential

Townships

Project

Name

Land

Area

Residential

Components

Taman

Mutiara

Galla

NA Terraces, detached

Mont Jade NA Detached

Taman Pulai

Impian NA

Terraces, semi-

detached

Taman Pulai

Perdana NA

Terraces, semi-

detached

Taman

Merpati

Seremban

NA Terraces, semi-

detached

Seremban

Forest

Heights

470

acres Terraces, detached

Seremban 2 1,500

acres

Terraces, semi-

detached,

detached

Seremban 3 1,000

acres

Terraces, semi-

detached

Rasah

Kemayan NA

Terraces, semi-

detached,

detached

Lavenda

Heights

353

acres

Terraces, semi-

detached,

detached

Taman

Arowana

Indah

NA Terraces

Source : Henry Butcher,2008

All these new residential developments

are providing “landed” type residential

either terraces, semi-detached or

detached units. The Seremban market

have not taken to strata-title type

residential properties, as landed


3-32


residential is largely available at

affordable prices. Given the landed

residential’s generous built-up areas

over condominiums and apartments,

demand for the latter is thus very soft.

Seremban’s residential developments

also attract a number of purchasers

who prefer to live in Seremban and

work in Klang Valley. They do not mind

commuting by rail and sacrifice

distance over buying an affordable

landed property. Many of these

purchasers are in government service.

However for townships located away

from the city, take-up rate is low and

population is sparse.

It is noted that residential

developments in the District of

Seremban is spread over a wide area

with a number of very large scale

developments. Seremban has a low

population base with affordability levels

which is much lower than neighboring

Selangor and Kuala Lumpur. This is

reflected in the lower prices of its

property.

In Seremban town and its periphery

there are at least 8 shopoffice projects

launched providing mostly 3 and 4

storey shop offices. Whilst the take-up

rates of these launches (2006 and 2007

launches) are good as the number of

units at each launch is limited, between

20 to 60 units only, actual occupancies

may be poor for those projects not

located in town areas. Most of the

shop offices are also within residential

townships which generally do not have

high catchment such as Seremban

Forest Heights (poor take-up, too far),

Seremban 2, Seremban 3, Lavender

Heights.

Seremban’s property development is

not active and take-up rates for large

townships away from the town centre is

likely to continue to perform poorly

unless the State generates higher

employment opportunities and initiate

major economic catalysts which could

spur overall demand for property.

Unless this happens, Seremban property

will still likely attract mostly people from

Seremban and only a limited few from

Klang Valley, unlike Kuala Lumpur and

Penang which have an active property

market and are the top cities chosen

by expatriates and foreign investors.

3.4.2 Property Transactions

The total units of property transactions

(all types of properties) for the whole

State ranges from 13,903 in 2003 to

17,380 in 2006 (although in 2004 higher

units were transacted at 20,857).

Negeri Sembilan’s property transactions

are dominated by the residential sector

where over the last 4 years between

55% to 73% of the total number of

property transactions in the State are

for residential properties.


3-33


Table 3.13 : Volume of Property Transactions in

Negeri Sembilan

2003 2004 2005 2006

Residential 10,189 15,132 11,995 12,371

All sectors 13,903 20,857 17,215 17,380


Finance, 2007

The District of Seremban accounts for

65% to 72% of residential transactions in

the State, showing that this District is the

most active in terms of property.

3.4.3 Active Market for Residential and

commercial Properties but Values are

Low

The residential property market in

District of Seremban is active and

accounted for 8,580 residential

transactions out of 11,995 total

residential transactions in the State that

is 72% of total residential transactions

for the year 2005. In 2006, some 8,026

residential transactions from 12,371

were transacted in the District which

accounted for 65% of residential

transactions in the State. Whilst the

number of transactions are high, the

value per transaction for the District is

low at RM110,900 in 2005 and

RM130,150 in 2006.

The District is active in the commercial

sector and accounts for 63% of total

number of commercial transactions in

the State. In terms of value of

commercial transactions, the District’s

market share is even higher at 70% of

the State’s total value of commercial

transactions. However value per

transaction for commercial is low at

RM320,000 in 2005 and even lower in

2006 at RM223,500 only.

The following table shows the level of

activity in the District for the residential

and commercial sectors.

Table 3.14: District of Seremban Residential and

Commercial Transactions

Residential

transactions

Commercial

transactions

RM mil Number RM mil Number

2004 1,086.48 9,003 311.43 1,032

2005 951.86 8,580 295.10 922

2006 1,044.46 8,026 256.42 1,147


Finance, 2007

3.4.4 Property Price and Product Trends in

District of Seremban

a. Most popular price range,

RM100,000 – RM150,000

Over the past 4 years, transactions of

residential properties in the District

shows that there is strong demand for

properties priced from RM100,000 to

RM150,000 which accounts for the

highest proportion of transactions that is

23% (in 2006) of the total residential

transactions in the District. The price

range of RM150,000 to RM200,000 and

RM75,000-RM100,000 are the next most

popular price band. This shows that

there is strong demand for lower end


3-34


properties. From the table above,

some 78% of residential transactions

registered, were those priced less than

RM200,000 (for 2006).

Table 3.15: Most transacted price range of residential (top residential price range)

PRICE RANGE 2003 2004 2005 2006

RM25,000-RM50,000 11 9% 10% 9%

RM50,000-RM75,000 14% 11% 13% 12%

RM75,000-RM100,000 28% 26% 20% 17%

RM100,000-RM150,000 22% 25% 21% 23%

RM150,000-RM200,000 12% 17% 16% 17%

RM200,000-RM250,000 3% 4% 4% 7%

RM250,000-RM500,000 4% 4% 4% 8%

RM500,000-RM1mil 0% 0% 0% 0%

Others 6% 4% 12% 7%


b. Most popular type of residential,

1st and 2nd terraces

The three top residential properties

transacted in the District of Seremban

are 1 storey terraces, followed by 2

storey terraces and vacant land. Since

2004 both the 1 storey and 2 storey

terrace houses appear to be equal in

popularity. However in terms of trends,

the 2 storey terraces have gained the

most incremental from 20% in 2003 to

25% in 2006. This shows a rise in

affordability levels. The 1 storey

terraces has seen a decreasing trend in

their market share of residential

transactions from 39% in 2003 to 27% in

2006.

The flatted / strata type residential

properties are the least popular

whether condominiums, flats or low

cost flats and account for between 1%

(condominium, flats) to 3% (low cost

flats) of total residential transactions (in

2006).

This indicates that Seremban

purchasers have a very strong

preference for “landed” type

residential properties over strata type

dwellings.


3-35


Table 3.16: Most Popular Type of Residential Property Transactions

Type of

Residential 2003 2004 2005 2006

Vacant land 16% 14% 21% 21%

1st terrace 39% 33% 27% 27%

2nd terrace 20% 33% 27% 25%

1st semi-d 3% 4% 3% 6%

2st semi-d 2% 2% 3% 6%

Detached 6% 5% 6% 7%

Condominium 1.5% 2% 3% 1%

Flat 0.9% 1% 1.7% 1.4%

Low cost flat 2% 2% 4% 3%

Low cost house 9% 6% 6% 4%

Source : Property Market Reports, Ministry of Finance, 2007

c. Strong average price change for

“landed” type properties

The highest average price change were for detached and semi-

detached (single storey) houses followed by terraces. Flatted residential

especially condominiums and flats have not shown strong incremental

since 2003 with either negative price change or very small incremental

in prices, compared to the “landed” type residential.

Table 3.17: Average price of residential properties by type

Type of

Residential

2003

RM

2004

RM

2005

RM

2006

RM

Vacant land 96,900 96,900 65,800 85,000

1st. terrace 89,600 95,800 97,900 101,500

2st terrace 141,600 145,300 150,300 158,800

1st. semi-d 157,900 170,700 168,600 184,700

2st semi-d 223,400 243,400 207,500 236,600

Detached 195,500 244,500 229,900 248,700

Condominium 119,800 78,400 97,500 116,200

Flat 59,200 64,100 66,500 65,800

Low cost house 51,600 56,600 57,400 57,500

Low cost flat 38,200 37,800 34,000 34,800

Source : Property Market Reports, Ministry of Finance


3-36


3.4.5 Property Trends in District of Seremban

The District of Seremban accounts for

the most number of residential stock

(existing supply) that is 66% to 68% of

the total existing stock in Negeri

Sembilan, (the next highest

concentration of residential at 13% is in

the District of Port Dickson). There is a

high concentration of “landed” type

properties in this District (District of

Seremban) at 81% in 2006.

Incoming supply (that is projects under

construction, launched projects) in the

District of Seremban showed the same

trend as the existing stock, where 78%

are for landed type properties made

up of terraces (45%), detached and

semi-detached (31%) and only 4% were

for condominiums.

The latest NAPIC report shows that

there is planned supply of 9,244 units of

condominiums in the District, against a

total of 77,833 units of planned

residential. This accounts for almost

12% of the total planned supply. Such

a large number is worrisome, as the

demand in Seremban for flatted

residential is poor.

Table 3.18: Seremban Residential Stock by Type

Year

Existing

Residential Stock Breakdown of Property Type

Dist. of Seremban Condominiums Flats Low Cost Flat Terraces

(As A Comparison)

2004 133,204 4% 53% 6% 49.7%

2005 141,910 5% 4% 6% 49.4%

2006 150,442 6% 4% 6% 49.4%



3-37


3.4.6 Property Overhang

The NAPIC (Pusat Maklumat Harta

Tanah Negara) Q1, 2007 report, states

that the overhang of residential units in

Malaysia have increased from 25,331

units in Q4 2006 to

26,045 units in Q1,

2007. Most of these

overhang units have

been in the market for

more than 24 months.

Negeri Seremban’s

overhang situation is

currently at 1,940 of

residential units and

637 units of

commercial overhang.

Most of these units are

located in District of

Seremban comprising

of terraces, detached, condominiums

and low cost flats. The District has a

total of 1,369 units of residential

overhang. The breakdown of

overhang residential properties in the

District shows 28% were for low cost

flats, 27% for 2 storey terraces, 15%

each for 1 storey terraces and

detached and 14% for condominiums.

The state of overhang properties in

Negeri Sembilan may not be high

(compared to other states), but in

comparison to Penang which has no

overhang problems, then Negeri

Sembilan’s overhang is serious,

especially as development trends in the

District of Seremban (the most active

district in the State), tends to be

developed in the outskirts and a strong

trend towards leap frog developments.

Wednesday June 4, 2008


3-38


3.4.7 Estimates of Land Values in Seremban

The following table shows estimates of

land values in Seremban. Commercial

sites in the city centre could fetch

between RM100psf – RM150psf.

Outside of the city centre, commercial

plots would likely fetch in the range of

RM20psf to RM40psf whilst lands suitable

for residential development would be in

the range of RM7psf to RM8psf to as

high as RM10psf to RM12psf.

Table 3.19: Estimated Land Values in

Seremban by location

Type Estimated

Price

City Centre commercial RM100psf–

RM150psf

Outside

City Centre

Labu Area commercial

residential

RM30psf-

RM40psf

RM10psf-

RM11psf

Seremban

2 Area

commercial

residential

RM20psf-

RM30psf

RM10psf-

RM12psf

Bt. Rasah

Area

Commercial

residential

RM30psf-

RM40psf

RM7psf-

RM8psf

Templer

Area

(Jln Tun Dr

Ismail)

commercial

residential

RM20psf

RM8psf-

RM10psf

Siamang

Gagap

Area

commercial

residential

RM20psf

RM7psf-

RM8psf


4-1


In this study, perception surveys were

conducted to assist in evaluating and assessing

the method of sequential approach in

Malaysian Development and Planning Process.

4.1 OBJECTIVES OF THE PERCEPTION SURVEY

The main objectives of the perception survey

were as follows:

i. To undertake the survey of local

authorities, state governments as

well as consultants involved in the

formulation, processing and

endorsing, as well as in the

application of development plans

in the planning process and

procedures;

ii. To gauge the understanding and

knowledge of the Sequential

Approach amongst planners and

policy makers;

iii. To receive feedback regarding the

possibility of introducing and

implementing the concept into the

Malaysian Planning system and the

requirements on legislation,

organization and skills;

iv. To gather the perception and views

of policy makers, urban managers,

professionals and property

developers on what constitutes a

sustainable urban form of urban

development.


4-2


4.2 MODUS OPERANDII

The survey was undertaken in the 2 cities which

have been identified as study areas, namely,

George Town and Seremban.

The groups of people that were interviewed

has been selected based on the following

criteria:

i. The person would have been

involved in the formulation of

Structure Plans and / or Local

Plans;

ii. The person would be a member

of the Council’s Staff who would

have been involved in the day

to day processing of

applications that are received

by the Council;

iii. The person would have to be a

member of the technical

agency that is involved in the

OSC process;

iv. The person would be a member

of the Local Council who is

involved as a committee

member of the Structure Plan /

Local Plan Steering or Technical

Committees, and also a

member of the One Stop

Centre;

v. The person would have been

involved in the development of

properties in the city centre and

also out of city centre.

Number of Interviewees

The number and group of interviewees that

was intended to be undertaken in each city,

were as follows:

i. Person/s involved in formulation

of Structure Plan/Local Plan 3

ii. Members of the Council’s Staff

who would have been involved

in the day to day processing of

applications that are received by

the Council;

2

iii. Members of technical agencies

that are involved in the OSC

process;

3

iv. Local Councilors 2

v. Developers (REHDA) 2

TOTAL 12

4.3 RESULTS OF THE SURVEY

In getting the survey done, three (3) briefings

were conducted, two at Majlis Perbandaran

Pulau Pinang (MPPP) on 6th September 2007

and 26th September 2007 and one at Majlis

Perbandaran Seremban (MPS) on 24th

September 2007. A briefing to REHDA will be

conducted in December 2007 due to time

constraints and availability of the REHDA

members.

For MPPP, 21 numbers of surveys were

distributed and 10 numbers were returned and

as for MPS, 23 surveys were given, and 12 were


4-3


returned. Therefore, for this interim report, a

total number of 22 surveys (not inclusive of

surveys from REDHA) will be used for preliminary

analysis.

Figure 4.1: Number of Respondents by city

From the total survey distributed to both city

councils, more than 50% responded to the

survey. Therefore, the survey results would have

reflected a fair view of the survey.

SURVEY QUESTIONS

2123

1012

0

5

10

15

20

25

PE

NA

NG

(M

PP

P)

SE

RE

MB

AN

(MP

S)

CITY

NU

MB

ER

S No. Survey Q

Distributed

No. Survey Q

Returned


4-4


The breakdown of the participation of survey is

as follows:

Table 4.1: Breakdown of Number of Respondents by City

Nos. Nos.

Local Council MPPP

7 MPS

4

Councillors 2

JPBD ‘Negeri’ Pulau Pinang 1 Negeri Sembilan 4

JPBD

‘cawangan’/Pej

abat Project

Alor Setar Melaka 1

others (JKR, Alam

Sekitar,etc) 3

Total 10 12

Redha To be interviewed in December 2007

4.4 PERCEPTION SURVEY ANALYSIS

The following are the survey questions that

were analysed. Although the survey was

designed for three (3) sections; A, B and C,

only sections A and B of the survey questions

were answered and will be analysed in this

interim report. Section C of the survey has

been designed for developers and the analysis

of Section C will be covered in the technical

report which will be submitted at the next

stage.

Section A : General

QUESTION 1 :

Do you perceive the

outward expansion and

growth (of the urban areas)

are sustainable?

OUTWARD EXPANSION IS

SUSTAINABLE

6 6

46

0

2

4

6

8

10

12

14P

EN

AN

G

(MP

PP

)

SE

RE

MB

AN

(MP

S)

CITY

NU

MB

ER

S NO (NOT

SUSTAINABLE)

YES

(SUSTAINABLE)

Figure 4.2: Perception on Urban Expansion

Sustainability

The results from Penang shows that 4

out of 10 respondents believed that

outward expansion was not sustainable

whereas 50% of Seremban respondents

perceived that outward expansion is

sustainable.


4-5


PENANG (MPPP)

YES

60%

NO

40%

Figure 4.3: Percentage of Positive Opinion

about Outward expansion of

cities – George Town, Penang

60% of Penang respondents perceived yes to

outward expansion due to the following

reasons:

1. May reduce traffic congestion

2. Follow Development Plan and Structure

Plan.

3. George town is already a compact

city.

40% of respondents believed outward

expansion was not sustainable for the following

reasons:

1. Most outward expansion encroaching

into green field areas.

2. More pollution created from the

expansion.

3. Poor public transportation facilities.

4. Directly reduced city centre

population.

5. Developments are not economically

distributed

SEREMBAN (MPS)

YES

50%

NO

50%

Figure 4.4: Percentage of Positive Opinion

about Outward expansion of

cities – Seremban

Half of the respondents from Seremban

agreed to outward expansion and another

50% disagreed to it. The outward expansion

was seen as sustainable because:

1. Seremban town is seen as unable to

support new development.

2. Many constraints in developing

inner city areas.

3. May reduce congestion in the inner

city.

4. Land prices are relatively low

(outside of city centres).

5. Unavailability of land in the inner

city for proper development.

However, another 50% of the respondents

felt that outward expansion as not

sustainable due to:

1. The need to preserve prime

agriculture land from being further

encroached for new development.

2. Creation of sub urban migration

which reduces the inner city

population.

3. Transfer of agriculture, ESA and

bumiputera’s land.


4-6


QUESTION 2 :

Do you perceive that the

urban development of

Penang and Seremban

tends to follow the

Sequential Approach

Concept or tend to leap

frog?

Figure 4.5:

A majority of Penang and Seremban’s

respondents agreed that development in both

towns tended to leap frog rather than follow a

sequence. Eighty percent from Seremban and

all those surveyed in George town (100%)

agreed to the above because:

1. Land price issue

2. Better residential neighbourhood area

i.e parks, quality of living

3. More choices of residential product

provided especially landed properties.

4. Many potential big land areas for

development.

5. Political interference to encourage

development in outskirt areas.

6. Lack of public facilities in city centre

area i.e schools, libraries. (this was the

answer for Seremban town).

7. Conversion of land from agriculture to

mixed development were allowed and

without proper monitoring.

8. Inner cities have many restrictions

especially on

heritage

conservation

and conversion.

9. Strict policy in

the inner cities

that

subsequently

encouraged

outside

development.

Question 3:

What/which areas in the

city would you consider as

inner city, outer city and

peripheral areas?

Please refer the following maps, for the sample

inner city boundary as per survey.

20

80

0

100

0

20

40

60

80

100

PERCENTAGE

PENANG

(MPPP)

SEREMBAN

(MPS)

CITY

PENANG & SEREMBAN :

PATTERN OF DEVELOPMENT

SQA

LEAP FROG


4-7



4-8



4-9



4-10



4-11



4-12



4-13


90

100

33

50

17

0

20

40

60

80

100

PERCENTAGE

PENANG

(MPPP)

SEREMBAN

(MPS)

CITY

PENANG & SEREMBAN :

INNER CITY LIVING SHOULD BE PROMOTED

YES

NO

NO ANSWER

Question 4 & 5:

As Councillors/ LA officers/

Developers, do you

believed that the inner city

should be promoted as

the centre of living,

business, social activities

of the whole city? Give

reasons to the answer?

Figure 4 .6: Perception of Inner City

Revitalization, Seremban and

George Town

From the above it shows that many officials in

Penang perceive that they are acceptable to

the idea of city revitalization by promoting

inner city living, business activities and social

activities whereas those surveyed in Seremban

felt that the inner city to maintain its traditional

activities as an administrative centre and

business centre.

These are due to the following reasons:

1. A lot of investment has been invested to

upgrade the existing infrastructure and

plastic transportation in the inner city.

2. Potential to create night activities.

3. To balance the activities in the cities i.e.

living place, business centres and social

activities.


4-14


23%

62%

15% 13%13%

73%

0%

10%

20%

30%

40%

50%

60%

70%

80%

PERCENTAGE

PENANG (MPPP) SEREMBAN

(MPS)

CITY

CURRENT DEVELOPMENT TREND

inner city

outer city

peripheral

Question 6:

Are current developments

tending towards the inner

city, outer city or peripheral

areas?

Figure 4.7: Development Trends in George

Town and Seremban

For Penang, the survey results showed that

current development trends are more within

outer city areas, whereas for Seremban it

clearly indicated that the development trend

was more in the peripheral areas.

Question 7:

If you perceived that the

current developments are

towards the outer city, are

there any adverse impacts

to the inner city? If Yes, what

are some of these?

Due to the results in question 6, inner city areas

for George town and Seremban both

experienced negative

impacts. Among the

common issues are:

1. Less activities in

the inner cities

after 7:00 pm,

cities became

dead and under

utilized.

2. Services and

activities started

to be

concentrated in

the outer and

peripheral areas.

3. Many office blocks became less

occupied and started to dilapidate.

4. Slowly, development for the inner cities

will not achieve target as specified in

the development plans.


4-15


QUESTION 8, 9 & 10:

Do you think it is possible to

encourage developers to

develop in the inner city

rather than the outer city

areas?

DEVELOPER'S PARTICIPATION IN INNER CITY

DEVELOPMENT

PENANG

)MPPP(

90%

SEREMBAN

)MPS(

50%

Figure 4.8: Possibility of Developers’

Investing in the City Centre

The above survey shows the respondents’ view

on whether the majority of developers in

Seremban and Penang may be encouraged

to develop in the inner city first if there are

enough assistance given. The respondents in

George Town have been more optimistic

about the possibility (90 %) compared with

those in Seremban which had some

reservations.

Related to this, the survey also showed that

none of the respondents from both cities were

aware of any incentives or encouragement by

the government to promote inner city

development.

QUESTION 11,12 and 13 :

Before today, have you

been introduced to the

concept of Sequential

Approach or Smart Growth

that are practiced and

implemented in the UK and

USA respectively?

AWARENESS LEVEL

020406080

100120

Seq

App.(UK)

Smart

Growth

(U.S)

Seq

App.(UK)

Smart

Growth

(U.S)

GEORGE TOWN

(MPPP)

SEREMBAN (MPS)

CITY

PE

RC

EN

TA

GE

NOT AWARE

AWARE

Figure 4.9: Degree of Awareness about

Sequential Approach or Smart

Growth Concepts

The survey results above indicated that the

majority of the respondents were unaware of

the sequential approach or smart growth

concepts. Less than 50% from the survey were

exposed to these new concepts of sustainable

urban development.


4-16


QUESTION 14,15 and 16:

Do you think Sequential

Approach concept can

be adopted and

implemented in the

Malaysian Planning

System. If yes, what is

needed to make the

concept work in

Malaysia? If NO why?

The respondents were initially given a briefing

to introduce them about the concept of

Sequential Approach. Then they were asked

to fill in the survey

questionnaire. Based on the

survey, more than 90% of the

respondents believed that the

concept of sequential

approach to development

can be adopted in Malaysia,

provided that the following

needs and requirements are

revised and improved, i.e.

legislative needs or standards,

financial and economics

incentives, organizational needs and skill

needs. Among the listed needs, the majority

felt that amendments to the current legislation

and Planning Standards, as well as

improvements to the financial and economic

incentives were the most important. Further to

that, the survey also highlighted that

partnership between developers, communities,

government and other stakeholders are also

required in order to ensure that the sequential

approach can be applied within the

Malaysian context.

Figure 4.10: Perception of the Approach

being adopted in Malaysia

90

100

92

08

0

20

40

60

80

100

PERCENTAGE

GEORGE

TOWN

(MPPP)

SEREMBAN

(MPS)

CITY

SEQUENTIAL APPROACH IN MALAYSIAN

CONTEXT

CAN BE ADOPTED

CANNOT APPLIED

NO ANSWER (refer

detail survey)


4-17


SECTION B: PLANNING PROCESS AND LAND

MATTERS

QUESTIONS 1 AND 2:

Do you think the

Development Plan System

has guided development to

be in a phased or sequential

manner? Should Sequential

Approach be incorporated

in the formulation of

Development Plans? If Yes,

which documents?

Figure 4.11: Perception of the existing

development Plan System

Towards Sequential Approach

8

2

7

5

0

2

4

6

8

10

12

NUMBERS

GEORGE

TOWN

(MPPP)

SEREMBAN

(MPS)

CITY

EXISTING DEVELOPMENT PLANNING SYSTEM

IN MALAYSIA

NOT GUIDED BY SQ A

GUIDED BY SQ A

10

0

11

1

0

2

4

6

8

10

12

NUMBER

GEORGE

TOWN

(MPPP)

SEREMBAN

(MPS)

CITY

DEVELOPMENT PLANNING SYSTEM IN

MALAYSIA

YES, SHOULD

INCORPORATE SQ A

NO, NOT REQUIRED

Figure 4.12: Perception of future

Development Plan System

Towards Sequential Approach

The survey showed that more than 50% of the

respondents felt that the existing development

plan has been guided by the concept of

sequential approach. However, results from the

survey also highlighted that the majority still felt

that sequential approach needs to be

incorporated in the formulation of

development plans. These have been further

elaborated by the survey that more than 50%

of the respondents from George Town and

Seremban believed that sequential approach

should be incorporated in all the development

plans, i.e. ‘Rancangan Struktur Negeri,

Rancangan Tempatan Daerah, and

Rancangan Kawasan Khas.’ Please refer the

following charts.

GEORGE TOWN (MPPP): INCORPORATION OF

SQ A INTO DEV. PLANS

30%

10%

0%

60%

0%

RS

RTD

RKK

ALL

NO ANSWER

SEREMBAN (MPS): INCORPORATION OF SQ A

INTO DEV. PLANS

8%

25%

8%

51%

8%

RS

RTD

RKK

ALL

NO ANSWER

Figures 4.13 & 4.14:

Perception of the involvement of Sequential

Approach in development Plan System


4-18


QUESTION 2 (II):

Do you think that Structure

Plans and Local Plans allow

for development without

sequence, which leads to

leap frogging of

development? Are the

Structure Plan and the

Local Plan detailed or

structured enough to guide

development in a

sequential manner? Should

these plans be structured to

allow for Sequential

Approach?

Figure 7.15: Structure and Local Plans in

relation with Sequential

Approach

The survey showed that majority of the

respondents agreed that both structure plans

and local plans promote development without

sequence. It also proves that both plans are

not detailed enough to guide development in

a sequential manner. Therefore, the survey

suggested that these development plans

should be structured to allow for sequential

approach. Many proposals have been given

by the respondents, amongst them are:

1. Give proper incentives

2. Abandoned projects and buildings in

the inner city to be listed in the

development plans and priority be

given to these lists.

3. Policy and Standards to be reviewed to

promote more flexibility for inner city

developments.

4. Development plans to include property

trends and current market conditions

and updated feasibility studies.

PERCEPTION OF STRUCTURE PLANS AND

LOCAL PLANS WITH SQ A

10

7

0

4

1

34

7 7

1

0

2

4

6

8

10

12

GEORGE TOWN

(MPPP)

SEREMBAN (MPS)

CITY

NU

MB

ER

S

ALLOWED W/O SEQ

WITH SEQ

NO ANSWER

DETAILED FOR SEQ

NOT DETAIL ENOUGH

NO ANSWER


4-19


9

1

9

21

0

2

4

6

8

10

NUMBERS

GEORGE

TOWN

(MPPP)

SEREMBAN

(MPS)

CITY

PROCESS OF OBTAINING PLANNING

APPROVAL, SUB DIVISION AND LAND

CONVERSION

PROVIDE MECHANISM

FOR SQ A

DO NOT PROVIDE

MECHANISM FOR SQ

A

NO ANSWER

QUESTION 3:

Do the process of obtaining

planning approval,

subdivision and land

conversion provide the

mechanism for sequential

approach development?

Figure 4.16: Sequential Approach in the

process of obtaining planning

approval, sub division and land

conversion

Both George town and Seremban respondents

strongly agreed that the process of obtaining

planning approval, sub division and land

conversion have provided mechanism for

sequential approach.


4-20


5

1

6

1

4

0

3

0

1

2

3

4

5

6

NUMBERS

GEORGE

TOWN (MPPP)

SEREMBAN

(MPS)

CITY

REDEVELOPMENT OF PRIORITY AREAS

URBAN RENEWAL

CONSERVATION

REHABILITATION

T.O.R

MIXED DEV.

QUESTION 4 (a), (b) & (c):

Are there any areas in the

inner city, other parts of the

city (brownfield areas) that

should be re developed

first? Identify these areas.

How can they be

developed? Will there be

any problems for these

areas to be developed?

The survey has highlighted several areas within

the inner city that should be redeveloped as a

priority. These have been provided by the

officials and local councilors who have

extensive and local knowledge of the two

cities respectively.

Table 4.2: Identification of Priority Areas for Redevelopment in George Town and Seremban Cities.

GEORGE TOWN SEREMBAN

PRIORITY AREA FOR

REDELOPMENT

1. Government Quarters at Jln

Sungai / Sp Chellah, 2. Shop lots

within the city.

2. Bandar Air Itam.

3. Jelutong.

4. Jalan Perak.

5. Weld Quay – squatter houses,

vacant lands.

6. Lebuh Ah Quee- council social

housing blocks.

7. Sg Pinang – riverside

development, Jln Perak.

8. Inner city of George Town

1. Old school and government

offices.

2. Jalan Dato’ Bandar Tunggal.

3. Peninsular Plaza,

4. Former Convent Site

5. Kemayan Square

6. Tower blocks, Wisma Punca Mas,

7. Seremban Parade

8. Serounding Bukit Hill (Gan Hill)

9. Pantai Industrial Area

10. Taman ABT

11. Opposite KGV school site.

Figure 4.17:

Type of re development

for priority areas in

George Town and

Seremban.

From the survey, it was

indicated that most

respondent believed that

redevelopment of priority

areas within the inner city

should be done through

urban renewal followed

by rehabilitation and


4-21


should consist of mixed development.

However, The opinion of the respondents also

highlighted that there were some issues

concerning these areas that must be

considered. Among the common issues were:

i. Land ownership

ii. No demand to take over abandoned

projects.

iii. Costs associated for redevelopment is too

high.

iv. Strict development control policies.

Question 5:

How can the State

Government and Local

Authorities help in the

development of these priority

areas?

The respondents also gave their views on the

ways that the state government or local

authorities may assist in developing the inner

city. Amongst these were:

i. Providing professional advice and

assistance.

ii. Reduce costs associated to the

potential areas by writing off all

government charges against the

property and development.

iii. Provide exemption of stamp duty and

charges for interested investors.

iv. Give exemptions on transfer and

charges of land.

v. Assist in giving faster development

approvals to avoid higher holding

costs.

vi. Reduce on planning standards where

applicable to make sure that the

development gives better returns to

investors.

vii. Promote government – private joint

venture development.

viii. For abandoned private developments,

propose government take over for

conversion into government buildings

or quarters.

Question 6:

Are there any successful

urban renewal project in

George town and

Seremban?

The respondents also stated that there were

very few successful stories on urban renewal

projects in both the cities. The failure was

mainly due to poor management of the

properties which were mainly shopping

complexes. Both George Town and Seremban

experienced success in urban renewal project

for administrative centres i.e such as the

redevelopment of old market into Kompleks

Negeri and Wisma DPMNS in Seremban.


4-22


Question 7:

In what way should the inner

city be developed?

Many from the survey agreed that the old inner

city of George Town and Seremban should be

redeveloped through conservation and urban

renewal such as:

i. Preserving and conserving old buildings

whilst providing them with modern

facilities,

ii. Avoid demolishing old heritage

buildings except dilapidated ones;

iii. Re-branding of commercial street

frontages to create identity;

iv. Provide a mixed use activities such as

residential, retail and commercial to

attract more people in the city.

It can be inferred that based on the study

undertaken herewith, several elements that

are pertinent to the rest of the study and

should be considered henceforth are as

follows:

i. There are no clear and succinct

legislative provision in Malaysia

regarding sequential approach nor

smart growth;

ii. The Sequential Approach as used in the

UK has been brought about through

strong political support and political will;

iii. There are already statements of policies

and strategies towards city centre

development, sequential approach

and transport oriented developments in

the National Physical Plan, the National

Urbanization Strategy, and the State

Structure Plans of Penang and George

Town;


5-1


To ensure good urban growth and

development, we need good planning and

management. We need to formulate effective

plans for urban development and growth and

to implement and manage the development

and growth well, by adopting a good system

and set of procedures for the preparation of

these plans and for the control and

management of growth.

The Interim and Technical Reports analyzed

the existing system and procedures for the

planning, regulation and management of the

use and development of land in Peninsular

Malaysia under the following headings:

i. development planning, i.e. the

formulation of plans and policies to

guide development,

ii. development control, i.e. the regulation

of the development, use and

management of land,

iii. plan implementation, monitoring and

enforcement.

They were analyzed to identify the strengths

which can facilitate the adoption of the

sequential approach to achieve the objectives

of sustainable development and smart growth,

as well as to see whether there are any

weaknesses in them, which can hamper the

achievement of good and proper

development and cause problems and issues

in urban growth and development in the

country. The findings include what are the likely

causes of these weaknesses and problems. This

leads to the formulation of appropriate

recommendations in this final report in order to

resolve as much as possible the present


5-2


weaknesses and problems in the urban

development planning and management

system.

5.1 DEVELOPMENT PLANNING

Development Planning is the process of

formulating plans to guide, facilitate and

coordinate the use, development and

management of land in order to achieve the

desired goals for the future growth of the area.

5.1.1 The Development Planning Process

Under the development planning

system in Peninsular Malaysia, plans

and policies to guide and coordinate

the use and development of land are

formulated at national, regional, and

local authority levels, as provided for

under the Town and Country Planning

Act 1976(TCPA). These plans include:

a. the National Physical Plan,

prepared by the Director General

of the Federal Department of Town

and Country Planning, under

section 6B of the TCPA,

b. the Structure Plan, prepared by the

State Director of the Town and

Country Planning Department,

under section 8 of the TCPA,

c. the Local Plan, prepared by the

Local Planning Authority, under

section 12 of the TCPA,

d. the Special Area Local Plan,

prepared either by the State

Director of Town and Country

Planning or the Local Planning

Authority as directed by the State

Planning Committee under Section

16B of the TCPA,

e. the Comprehensive Regional Plan,

prepared by the Regional Planning

Committee under section 6A of the

TCPA.

5.1.2 Weaknesses of the present

Development Planning Process

The findings of the study on the

weaknesses and problems in the

preparation of development plans can

be summarised as follows:

i) The Plan Preparation Process Is

Too Long And Costly.

The structure plan and local plan

preparation processes follow a very

comprehensive, systematic and

meticulous process, incorporating

survey, compilation and analysis of

data, plan formulation and public

participation and objection, as

required under the TCPA. The whole

process has been deemed to take too

long, up to two years on the average,

and is very costly. There are various

reasons for this, which include:

The collection of data, especially

from primary sources and ground

surveys, is tedious and time-

consuming. There is always a

tendency on the part of the


5-3


planning officers to collect and

analyze too much data which may

be eventually unutilized in the

formulation of the plan. These data

are often not properly managed

and kept up to date, creating the

necessity to collect the same data

again and again.

The legally-required public

participation process, which

includes objection hearings, is

tedious and requires a long time.

Some sectors of the public are not

well-versed with planning

procedures and requirements and

require more time.

The decision-making process is also

unduly long, as Local Planning

Authorities and State Planning

Committees are sometimes unclear

and unsure of the planning options,

proposals and strategies. The

decision-makers, most of whom are

politicians, are sometimes fearful of

the uncertain political implications.

The use of more sophisticated

computer soft wares and the

geographic information system (GIS)

will facilitate and hasten the process of

data compilation, analysis, mapping,

presentation and decision-making. This

requires a permanent set-up in the

Town and Country Planning

Department dedicated to this task, with

support from other relevant

departments and the local planning

authorities, and a good computerized

system to keep all the necessary

planning information under constant

review. This is also in accordance with

the National Physical Plan which has

recommended that a central authority

be charged with the responsibility to

publish, on a regular basis, information

on land use development, and every

LPA be required to supply to the

authority information on planning

approvals (NPP 17).

ii) The Planning Problems And

Issues Are Not Well Identified.

Even with so much data collection,

there are weaknesses in the analysis,

identifying and understanding of

certain important planning issues and

problems in the planning area and the

causes of these problems, especially

the social and non-tangible issues, such

as urban and rural poverty,

unemployment and under-

employment, inaccessibility to urban

needs, increasing crime rates,

increasing cost of living, widening of

income gaps, social segregation, and

other problems of non-sustainable

development. This has often resulted in,

at the least, the issues and problems

not being resolved, or worse, the

problems further aggravated by

inappropriate planning proposals and

strategies in the development plan.


5-4


iii) The Public Participation Process

Is Not Effective.

The requirement for public participation

in the preparation of structure plans

and local plans is a positive step

towards involving the people who will

be affected by the plans for the better

understanding and identification of

problems and for better selection of

planning options.

However the process takes a long time

and has contributed to the delay in the

plan preparation process. It has in

many cases been found to be a

ineffective process. The public

participation in the structure and local

plan preparation process often mainly

involves a very small proportion of the

people. Most of the people who may

be affected by the proposals of the

development plan are not even aware

of the plan.

For effective public participation and a

more responsive planning, the first step

is to educate the public and increase

their awareness on the planning

process, on their right to participate

and on how they can participate and

contribute. Members of the public

should be familiar enough in the

planning system and process, be

aware of their present and future

needs, and be adequately articulate to

make intelligent and responsible

representations in the plan making

process. The detail procedures for

public awareness and participation in

the plan making process can be spelt

out in the rules made by the State

Authority under section 17 of the TCPA.

iv) Development Plans Are Not

Responsive And Effective

Many of the proposals and strategies in

the structure plans and local plans are

not directly responsive to the issues and

problems and hence not effective in

solving the problems. One main reason

is that urban problems and issues,

especially the social and non-tangible

ones, are not easily translated into

physical planning solutions. Another

reason is that the development plans

are still based very heavily on archaic

approach of planning, such as fixed

and rigid land-use zoning. Other more

flexible but more responsive and

effective planning approaches should

be examined for adoption. A system to

measure the effectiveness and

responsiveness of development plan

proposals and strategies need to be

formulated.

v) Development plans are not

action-orientated and time-

specific.

Many structure plans and local plans

are not sufficiently action-orientated

and time-specific. They do not indicate

the priority and the schedule for the

release of land for development, thus

allowing developers to carry out


5-5


development at their own time, site

and pace, resulting in urban sprawl,

leap-frog development, insufficient

infrastructure and facilities, and

mismatch between demand and

supply. The Sequential Approach

requires the adoption of more action-

orientated and time-specific

development planning. There should

be an in-built control in the release of

land for development and appropriate

incentives given to ensure that growth

and development are properly

integrated and channeled into more

suitable areas.

vi) Development plans are too rigid

or too vague.

Development Plans and planning

guidelines should not be too rigid or too

vague. A plan which is too rigid does

not allow any room for innovative

planning on the part of developers and

consultants. On the other hand, if it is

too vague, it will not provide a clear

guide for developers and their

consultants and the government

decision-makers. Good planning also

has to take into account changes in

circumstances and situations, and

guidelines and policies which are fixed

will create problems of stifling

development. The TCPA allows for

changes to the development plan, but

the process required to do that is

tedious and time-consuming. Many

LPAs have resorted to using

unapproved guide plans and

guidelines which can be amended

where necessary without going through

the long process required under the

TCPA.

vii) Planners and decision-makers

preparing development plans

are not made to feel responsible

and accountable.

The quality of development plans

depend very much on the quality and

dedication of the people who are

involved in the formulation and

approval of the plans, be they external

consultants, government officers, or the

politician decision-makers. They should

be made to feel responsible and to be

accountable to the people who will be

most affected by the outcome of the

plans and their decisions. On the other

hand, they should be able to take

credit if the plans or decisions create

the expected benefits and gains to the

people. A system of measuring and

monitoring responsibility and

accountability of decisions should be

formulated.

viii) Inadequate analysis of the

impact of development

proposals during the plan

formulation process.

In the preparation of development

plans and in the formulation of

planning options, development

proposals and strategies, there is often

no adequate impact or cost-benefit


5-6


analysis of the proposals and strategies.

This leads to poor decision-making in

the choosing of planning options and in

the approval of the development plan.

A form of Strategic Environmental

Assessment (SEA) can be formulated

and applied for this purpose of aiding

decision-making in the preparation of

development plans.

ix) Lack of Coordination and

Integration among agencies

and departments in planning

There is lack of coordination and

integration among the planning of the

various departments involved in the

development and use of land, such as

between Federal, State and Local

agencies, between the government

and private sector agencies, and

between the Local Authorities and

other departments and agencies in

charge of roads and infrastructure

development, schools and other

facilities and services, traffic planning

and management, and economic

development and environmental

protection.


5-7


5.2 DEVELOPMENT CONTROL AND LAND

MANAGEMENT

Development control is the day-to-day

regulation and control of the development

and use of land. Without development control

development planning will be futile. The

development plans are implemented mainly

by the actions of individual, corporate and

government developers, and thus all these

piece-meal developments have to be

controlled, monitored and coordinated by the

relevant authorities so that they conform to the

development plans. The change of land use

restrictions and the subdivision of land under

the National land Code (NLC) are also

included under this section.

5.2.1 The Development Control and Land

Management Process.

The study looked into the following

processes:

a. The Planning Permission Process

Section 18 of the TCPA prohibits

any person to use any land or

building if it is not in conformity

with the local plan. Section 19

prohibits any person to carry out

any development without the

planning permission of the LPA,

and section 21 spells out the

process for obtaining a planning

permission by any person

proposing to carry out any

development. The activity of

“development” under the TCPA is

very widely defined, and includes

the carrying out of any building

operation, including the

demolishing of a building, and of

any engineering, mining, industrial

or similar operation, the making of

any material change in the use of

any land and building, and the

subdivision and amalgamation of

land. An application for planning

permission is to be made to the

LPA in a prescribed form which is

to be accompanied by a

development proposal report and

a layout plan prepared by a

qualified person, and other

prescribed documents. If no local

plan exists then notice to

adjoining land owners has to be


5-8


served informing them of the right

to object to the proposed

development. If there are

objections submitted in the

prescribed form, the LPA has to

hear both the objectors and the

applicant, before deciding on the

application.

Section 22 spells

out the

procedures for

the consideration

of the planning

application by

the LPA. Where

the proposed

development

involves a new

township of more

than 10,000

population or an

area of more

than 100

hectares, or the

construction of

any major

infrastructure or

utility, or affects hill tops or hill

slopes in an environmentally

sensitive area, the application has

to be referred to the National

Physical Council for advice. After

due consideration, which has to

include taking into account the

proposals in the structure plan

and local plan, any other

planning guidelines and

standards adopted by the LPA,

the objections submitted by

neighbouring land owners, and

the recommendations of the

planning officer and other

technical departments, the LPA

may then approve the

application, with or without

conditions, or reject it. The LPA,

however, cannot approve an

application for planning

permission if the proposed

development contravenes the

approved structure plan or local

plan of the area, or any directions

given by the SPC. However no

mention is made of the National

Physical Plan of the


5-9


Comprehensive Regional Plan in

the consideration of the

application for planning

permission.

Under section 23 of the TCPA, an

applicant or an objector who is

aggrieved with the decision of

the LPA in the approval or

rejection of the application can

make an appeal to the Appeal

Board against the decision of the

LPA.

b. Variation of Conditions,

Restrictions and Categories of

Land Use

Part Seven of the National Land

Code (NLC), subjects all alienated

land to implied and expressed

conditions and restrictions. Under

sections 115, 116 and 117, the

implied conditions affect lands

subject to the various categories

of land use i.e. “agriculture”,

“building” and “industry”, and,

under section 119, to lands which

contain expressions of “padi”.

Section 124 empowers the State

Authority, upon the application of

the land owner, to alter of the

category of land use of his land,

to remove the expression of

“padi”, “rubber” or “kampong” in

the land title, or to impose and

amend any expressed conditions.

This process is carried out without

referring to the LPA or SPC.

Section 108 further states that

where any condition on the land

title is inconsistent with any by-law

or restrictions affecting the land

imposed by any local authority or

planning authority, the condition

shall prevail and the local

authority or planning authority by-

law or restriction shall, to the

extent of the inconsistency, cease

to apply to the land.


5-10


c. Sub-division, Partitioning and

Amalgamation of Land

Under section 135 of the National

Land Code (NLC), any land

owner can sub-divide his land,

with the approval of the State

Director of Lands and Mines or the

Land Administrator, as long as it

satisfies a set of conditions spelt

out in section 136 (1), which

include the conditions that any

necessary approval of any

planning authority has been

obtained, and that the sub-

division would not be contrary to

any plan approved by the State

Authority for the development of

the area, or the any decision of

any planning authority of the

area. There is no provision in the

NLC for any authority to impose

new implied or expressed

conditions or restrictions or vary

any conditions or restrictions or

the category of land use of the

land in the process of sub-division.

Similarly, under section 140, joint

land owners can partition their

land so that each new parcel is

vested in the name of each of the

land owners after partitioning. The

same set of prerequisite

conditions as in section 136(1) has

to be satisfied.

Under section 146, a land owner

can amalgamate his two or more

contiguous lots, if the same set of

prerequisite conditions is satisfied.

However in the amalgamation of

lands, the condition or restriction

or category of land use of any of

the land can be changed by the

State Authority if necessary if

there exist any dissimilarity

between any of the original lots to

be amalgamated.

d. Excision of Hill Lands and

Degazetting from Forest Reserves

Under the Land Conservation Act,

hill lands are gazetted and

protected from development. The

State Authority has the power,

however, to excise any gazetted

hill land, and need not legally

comply with the Structure plan or

Local Plan. On the other hand, if

there is any inconsistency

between the State Authority’s

decision to excise a land from Hill

Land and the proposal in the


5-11


Structure Plan or Local Plan in

relation to that land, the decision

of the excision will prevail.

Similarly the State Authority has

the power to degazette any

forest land under the National

Forestry Act, not withstanding the

proposals in the Structure Plan or

Local Plan. Even the National

Physical Plan may not have

adequate enforcement means to

ensure compliance in the

degazetting of forest reserves or

excision of hill lands by the State

Authority.

e. The One Stop Centre (OSC)

System

In April 2007, the Ministry of

Housing and Local Government

prepared a circular on the

implementation of the One Stop

Centre (OSC) system and, with

the approval of the National

Local Government Council,

directed all state authorities and

local planning authorities to

adopt the new system.

The OSC is intended to shorten

the time for the processing of the

various applications for approvals

of development by:


5-12


i. increasing the number of

staff in the processing of the

applications in the LPA,

ii. coordinating and

monitoring the comments

and requirements of all the

relevant departments

involved in the processing,

iii. allowing all the plans for

development to be

submitted and processed

concurrently,

iv. given a limited time frame

for all the stages of

processing,

v. replacing the planning

committee with a OSC

committee in every LPA.

5.2.2 Weaknesses of the Present

Development control and Land

Management Process

The weaknesses in the development

control and land management

processes, as spelt out in the Interim

and Technical Reports, can be

summarized as follows:

i) The planning permission process

is unnecessary tedious and

time-consuming.

The procedures in the approval of

planning permission as presently

practiced in most local authority areas,

is unnecessary tedious and time

consuming. There are many causes of

these delays, including:

unclear development policies,

plans and guidelines;

unclear and imprecise

recommendations on the part of

the planning officers;

lack of staff in the processing of

applications, in both quantity and

quality;

indecisions in the consideration of

the applications by the committee;

too many irrelevant and

unnecessary, and sometimes

conflicting, requirements and

comments from the technical

departments;

too many departments and

committees processing and

considering the applications;

unclear system and procedures of

processing of applications, some

steps are unnecessary, overlapping

and/or redundant;

the applicants and their agents are


5-13


not competent;

interferences from politicians.

The new One Stop Centre (OSC) system

has reduced very much this delay by:

increasing the number of staff in the

processing of the applications in the

LPA,

coordinating and monitoring the

comments and requirements of all

the relevant departments involved

in the processing,

allowing all the plans for

development to be submitted and

processed concurrently,

giving a limited time frame for all

the stages of processing,

replacing the planning committee

with a OSC committee in every LPA.

There are, however, still some teething

and other problems which are being

looked into by the Ministry with the

feedback from the various

departments, consultants and

developers.

ii) Poor Understanding of

Development Plans, Guidelines

and the Planning Law in

Development Control and

Regulation.

There is often a gap, poor

understanding and misinterpretation of

the law, policies, plans and guidelines

by the LPAs when applications for

planning permission are processed and

considered. One of the reasons is the

planning officers who are involved in

the daily processing of applications for

development were not involved in the

preparation of the development plans

or briefed well on the details of the

development plans and control

guidelines.

iii) Approving authorities, officers

and decision-makers do not

feel responsible and

accountable for the outcome of

their decisions.

The authorities, officers and decision-

makers, as well as the developers and

their consultants, should be proficient

and responsible and should be

accountable to the people who are

subsequently affected by the result of

their proposals, recommendations and

decisions. The LPA is the authority

responsible for granting planning

permission, and the State Authority is

responsible for the alteration of

category of land use, varying of

conditions and restrictions of land,


5-14


excision of hill lands and “de gazetting”

of forest reserves. Whereas in the

consideration for planning permission

the LPA has to abide by the proposals

in the Structure Plan and Local Plan,

there is no such legal restriction for the

State Authority to change the category

of land use under the NLC, to excise

“hill lands” under the Land

Conservation Act, to de gazette from

forest reserves under the National

Forestry Act. There should be greater

transparency in the approval process.

iv) The appeal process takes too

long

Although the objectors, as well as the

applicants, have a right to submit

appeals to the Appeal Board if they are

unhappy with the decision of the LPA in

approving or rejecting the applications

of planning permission, the process of

being heard and considered by the

Appeal Board takes a long time and is

very costly to the parties affected.

v) The use of IT systems and the

internet is not adequately

coordinated.

The use of appropriate computer and IT

system and the internet will go a long

way to reduce the tediousness, hasten

the process, reduce the uncertainties,

increase transparency, and to manage

and up-date planning and

development data in the development

control process. However, although

some efforts have been taken towards

this, there is still a much

room for improvement.

There is as yet no

concerted effort to

coordinate all these

efforts or to install a

uniform system for

electronic submission

and consideration of

applications of planning

permission or land

matters for all LPAs and

other relevant

departments.

vi) There is no adequate method to

assess the impact of proposed

development.

A more precise set of criteria and

indicators for sustainable development

should be formulated, and a more

precise and quick method of

evaluating the environmental, social

and economic impacts, as well as the

costs and benefits of the proposed

development under consideration

should be made available. These will

be invaluable for responsible and

effective decision-making in the

development control process.

vii) Officers in the administration of

land are not well versed with the

NLC and the TCPA.

Offices in the Department of Land and

Mines, in charge of processing and

advising on applications for alteration


5-15


of category of land use, subdivision,

amalgamation, and other land related

matters, under the NLC, are often not

specifically trained in land laws, land

administration, and planning laws, and

are also not in tune with the objectives

of good land administration and

management, good planning and

orderly development. This has in some

cases led to decisions that are contrary

to the laws and the development

plans.

viii) No legal provisions for decisions

on land applications to conform

to the development plans.

There are no provisions in the NLC, the

Land Conservation Act and the

National Forestry Act, for State

Authorities to have to comply with the

proposals of the National Physical Plan,

The State Structure Plan or the Local

Plan in their approval of applications for

alteration of category of land use,

excision of hill lands, or degazetting of

forest reserves. There have been cases

where areas zoned for agriculture or hill

land in the structure or local plan are

approved for alteration of the category

of land use to “building” by the state

authorities.

ix) LPAs do not consider the

demand and supply situation in

approving development.

The LPAs and the State Authorities in

their granting of planning permission

and the alteration of land use category

from “agriculture” to “building” do not

consider the situation of over supply of

development. They may be unable to

do this due to lack of updated supply

and demand data. The resultant

overhang of housing and commercial

floor space is due to over approval and

over development. The NPP has noted

that “Future property overhangs should

be prevented from recurring. It is

incumbent on approving authorities to

be restrained in the approval of

development applications and to be

guided by projections of housing and

property demand based on realistic

population projections. Approval of

land conversion should not be at a rate

faster than five years ahead of

projected demand for development

land. In addition to the planning control

exercised by state governments and

local authorities, it is important that the


5-16


private sector also exercises self

discipline and respond more sensitively

to state planning projections. A

contributing cause of speculative

development is the lack of accurate,

regular and transparent information on

the housing and property situation

available to developers and property

purchasers.”

x) Quality and competency of

agents are not adequately

regulated.

Some of the problems related to the

development control process are

caused by incompetent and

irresponsible agents and consultants

who are supposed to advise and help

the developers in the application for

planning permissions. The quality of

work and the competency of the

agents should be monitored and

regulated, and a system for this

purpose should be established by the

LPAs and the relevant professional

institutions and boards.

5.3 PLAN IMPLEMENTATION, MONITORING

AND ENFORCEMENT

Aside from the control of development under

the TCPA by the LPAs, we need to look into the

process, procedures and practice of how

development projects are carried out after the

plans have been formulated and approved.

Whereas development control can be

considered as the negative arm of plan

implementation, this part can be considered to

be the positive or proactive part, and need to

be looked into if the sequential approach is to

be adopted successfully.

This section looked into the procedures and

practices of how development projects are

implemented after the plans have been

formulated and approved, and analyze the

findings of these processes from the Interim

Report.

5.3.1 The Plan Implementation, Monitoring

and Enforcement Process

After planning permission, other plan

approvals and permits are required

before the development can be

carried out. These include:

Road and Drainage Plan approval

from the Local Authority (LA) as

required under the Street, Drainage

and Building Act (SDBA),

Building Plan approval from the LA

as required under the SDBA,

Structural Plan submitted to the LA

as required under the SDBA,

Earthworks Plan approval from the

LA as required under the SDBA,

Sub-division Plan approval by the

State Director of Lands and Mines or


5-17


the Land Administrator under the

NLC.

Development projects are carried out

by private or government developers.

There are many government agencies

and departments at the State, Federal

and Regional levels which can

undertake development, such as the

state economic development

corporations (SEDCs), the regional

development authorities, and

departments that carry out

development on behalf of the state or

federal government.

The local authorities are responsible to

ensure that the development of the

private developers as well as of the

government departments and

agencies are carried out in an orderly

manner and will conform to the

development plans and comply with

the conditions in the planning

permission. The TCPA, the SDBA and the

NLC spell out the type of offences and

the penalties that can be imposed if

offences have been committed by the

LPA and the State Authority.

The Local Authorities are able to carry

out development under the Local

Government Act. Local Authorities,

being the LPAs of their areas, do not

require planning permission of other

approvals, but will require the

clearance from other relevant

departments and authorities for their

development. The adoption of the

sequential approach calls for a more

proactive role for local authorities and

government developers to plan,

implement and manage their own

development in a manner more

responsive to the actual demand and

to optimize existing “brown field” sites.

5.3.2 Weaknesses of the Plan

Implementation, Monitoring and

Enforcement Process

The weaknesses in the implementation,

monitoring and enforcement process

include the following:


5-18


i) There is no control and

coordination in the

implementation of development

projects.

The local authorities do not monitor or

control the sequence and schedule of

the construction / implementation of

approved projects by private or

government developers and agencies.

Development is often on an ad-hoc

basis, at the time, pace and site of

individual developers, resulting in such

ills as leap-frog development, urban

sprawl and the overhang of developed

properties. Even government and utility

departments do not abide by the

structure or local plans programme, if

any, and carry out their projects based

on the departments’ own budgeting

and implementation schedules.

This often results in situations of shortage

or over-loading of utility services. The

preparation of development plans

often relies on external consultants

while implementation and

enforcement are carried out by the

local council officers who are often not

directly involved in the tedious plan

preparation process. There is hence

often a gap, poor understanding and

discontinuity during the implementation

and enforcement of the plans later on.

ii) The local authorities and other

government agencies do not

play an active role in

development.

Urban lands in Peninsular Malaysia are

largely under private ownership. The

local authorities and other government

agencies have to play a more

proactive role in the acquisition and

amalgamation of land in order to apply

the Sequential Approach to redevelop

more appropriate sites like “brown

fields” and inner-city areas, and to

preserve “green field” areas. Other

methods like Land Readjustment can

be looked into.

Penang has applied an Urban Renewal

Process in the development of

KOMTAR. This however has to be

assessed in order to eliminate the

inadequacies and to improve upon the

success of such an approach. Penang

should take the opportunity to adopt

the Transit Oriented Development

(TOD) approach to planning and

development, incorporating the

proposed monorail project. The


5-19


government should also play a more

active role to conserve and revitalize

old heritage towns and cities like

George Town.

iii) Insufficient incentives given for

developers to carry out

development in more

appropriate sites.

There is no, or not enough, incentives to

encourage developers to develop in

more appropriate areas and to avoid

the encroachment into “green field”

areas. Local, state and central

governments should look into the giving

of incentives, which can be financial

ones, such as giving discounts in

development charges, taxes and fees,

or non-financial ones like transfer of

development rights, giving higher plot

ratios and densities, and fast-track

approvals, in the adoption of the

Sequential Approach

iv) Enforcement actions under the

TCPA and the SDBA are slow

and inadequate.

This is inadequate monitoring of

offences and lack of enforcement

taken under the planning and building

laws. Reasons for the delays and

inefficiencies include:

Some parts of the law and by-laws

are not clear, out-of-date or are

inadequate;

The supervising officers and

inspectors are short handed or

inefficient; in most LPAs there are no

planning inspectors, and hence

offences and illegal development

under the TCPA are not spotted.

The charging and conviction of

offenders through the court of law

are tedious and time consuming;

there are often delay for cases to

be heard and there is a long back

log. (there have been proposals to

set up municipal courts to hear only

local authority cases);

The fines and penalties are not high

enough to create a significant

deterrence to potential offenders.

There are often interferences by

politicians.


6-1


This Chapter will examine the possible

incorporation of the Sequential Approach by

first examining the current legislation, policies

and strategies that are already in place in

Malaysia that addresses some of the urban

issues in the country. In particular, provisions for

policies and strategies concerning any

similarities with the Sequential Approach shall

be highlighted.

6.1 THE PLANNING LEGISLATION AND

DEVELOPMENT PLAN SYSTEM

The Development Plan system of the country is

thoroughly well covered and organized as

well as systematic, from the national level

down to the detailed local level in the form of

the action area plan. In many of these policy

documents, the provision for a more

sustainable urban form and land management

has been outlined.

The following paragraphs recapitulates the

provisions of sustainable urban land

management through the encouragement of

compact cities and limiting urban sprawl.

i. The National Physical Plan (NPP)

The NPP strategies which are directly

related to the policy of selective urban

centres and concentration are as

follows:

a. NPP 2 - The planning of urban-

based economic activities shall adopt

the concept of „Selective

Concentration‟ for strategic urban

centres for all states.


6-2


b. NPP9 – Urban Conurbations

i. The extent of the

conurbations has been

demarcated as follow:

For the National Growth

Conurbation a 45

minutes travel time from

the employment centres

of core cities.

For all other

conurbations a 30

minutes travel time from

the employment centre

of the core city.

ii. As a new urban policy

direction, use of vacant

land within the present built-

up area, rehabilitation and

redevelopment of existing

building sites shall be

emphasized.

The NPP proposes the use of

several basic parameters for the

purpose of delineating an edge

to a conurbation. The use of

designated parameters which

have been set at the macro

NPP level will guide and ensure

an integrated and consistent

approach in terms of the future

delineation of all conurbations

within Peninsular Malaysia.

Parameters taken into

consideration in the detailing of

the delineation of conurbations

have been:

Committed Development.

Acceptable traveling time,

door to door, for journey to

work (Kuala Lumpur

conurbation - 45 minutes,

Regional Conurbations and

other State Capitals - 30

minutes).

Physical: buildings based on

concentration.

Exclusion of Prime

Agricultural Areas (PAA) as

designated by the NPP.

Exclusion of Priority

Environmentally Sensitive

Areas (ESA) as designated

by the NPP.

c. NPP 12 - The individuality and

physical separation of the cities,

towns and villages within the

conurbations shall be maintained.

Measures:

The development limits of

individual cities, towns and

villages within the

conurbations shall


6-3


circumscribe the horizontal

expanse of the individual

cities. towns and villages.

The integrity of relationships

between the core areas of

individual cities and their

peripheries shall be

maintained.

While inter-city movements

within conurbations shall be

facilitated by mass transit

systems, land use planning in

the conurbations shall aim at

minimizing the necessity for

inter-city travel.

Structure Plans and Local

Plans shall encourage infilling

and the use of brownfield sites

within the urban areas, to

better utilise existing and

committed physical and

social infrastructure.

Local planning shall create

scope for urban regeneration

in the core cities not only for

the purpose of economic

growth but also for the

purpose of enhancing the

living environment.

Local planning shall be

sensitive to the conservation

of historical, cultural and

architecturally outstanding

areas to enhance the

character and uniqueness of

individual cities.

A hierarchy of infrastructural,

social and recreational

facilities shall be established

within each conurbation to

promote greater efficiency in

public investments and the

use of public facilities

ii. The National Urbanization Policy (NUP)

The policies in the National Urbanization

Policy that are related to the city centre

development or towards any of the inner

city growth are listed below. The NUP re-

emphasizes the need for compact urban

growth by giving priority to urban

revitalization through the redevelopment

of the inner cities and the provision of

public transport.


6-4


Table 6.1 : NUP – City Centre Policies

No Policy Statement

1 NUP 5 Optimal and balanced landuse planning shall be given emphasis in urban

development:

Measures:

i. Ensure development is concentrated within urban growth limit so as

to create a compact city;

i. Promote housing development within the urban centre or near to

activity centres with access to good amenities and transportation;

2 NUP 6 Urban Development shall give priority to urban renewal within the urban area:

Measures:

i. Implement infill development at potential areas;

ii. Identify and prepare an inventory of brownfield areas;

iii. Plan and prepare the re-development programmes for brownfield

areas;

iv. Promote urban regeneration for areas potential for development;

v. Rehabilitate polluted areas prior to development;

vi. Establish an agency responsible for planning and managing urban

renewal;

Encourage private sector involvement through the provision of incentives

and joint venture programmes with the government.

3 NUP 15 An integrated, efficient and user-friendly public transportation system shall be

developed.

Measures:

i. Prepare a public transportation master plan at all levels of urban

centres;

ii. Integrate public transportation system in landuse planning by

implementing the concept of Transit Oriented Development (TOD)

iii. State Structure Plans

The State Structure Plans are policies

and strategies that transcribe the

national policies such as the National

Physical Plan and the National

Urbanization Policy into more detailed

plans at the state level. These plans

would spell out in greater detail the

strategic actions that will be needed in

order that the policies at national level

shall be reached.

Therefore in terms of urban form and

land management, the incorporation

of the compact city or limitation of

urban sprawl has been examined and

the following paragraphs relate to the

provisions made in the Structure Plan of

Penang State, in which George Town is

located, and the State Structure Plan of

Negri Sembilan, in which Seremban is

the State capital.


6-5


a. The Penang State Structure Plan

An examination of the

policies and strategies

within the Plan was

made and the

statements found

pertaining to inner city

development or development

within already built up areas or

town centres are listed as the

table below.

Table 2.2 : Penang State Structure Plan – Contents related/implied with Sequential Approach.

Item Statement in Plan and Reference

1 Page xvi – Sectoral Policy: DS 19

Giving priority to comprehensive infill development in the main towns and

other main centres.

2 Page 2-28 – Directions of Growth – 2.5.9 (i)

Towards More Sustainable Land Use:

“……It is estimated that there are 4,500 hectares of land within existing

town centres that has the potential for development. Therefore, any

applications for planning permission shall only be considered for priority

development areas that have been identified….”

3 Page 3-3, Land Use Strategic Plan – 3.3.1

Priority Development Areas

“…..are already built up areas. For these areas, the objectives are to

optimize land use and existing infrastructure….”

4 Page 4-10, Policy DSU7 –

The development of Land until 2020 shall optimize priority development areas

as well as new areas to be identified.

Policy DSU7 – L2

Encourage integrated infill development, urban renewal, redevelopment and

adaptive reuse in town centres, dilapidated areas, abandoned areas,

unproductive areas, and areas outside of heritage zones.

Policy DSU7 L3

Encourage high density developments on the island especially in areas along

transport (monorail) routes,….”

Policy DSU7 L4

Giving emphasis and priority of development into built up areas through the

Sequential Approach, as follows:


6-6


Giving priority to development in areas of Rank 1 with focus on existing

built up areas that have public transportation and infrastructure facilities;

Giving priority to Rank II built up areas and new areas that have

transportation and infrastructure facilities …..”

Policy DSU7 L6

“Encourage high density infill development along the monorail transport

routes……”

Policy DSU7 L7

Land use planning shall be integrated with traffic planning , planning for

public transportation and social planning.

5 PAGE 4-51, DS 18-

Commercial floor space shall be identified based n the hierarchy of centre;

DS1 8 L2

Targetted commercial floor space needs by 2020 in identified centres of

hierarchy (followed by a table on the allocation by hierarchy of centres)

Page 4-51, DS1 9

Giving priority to infill development in main town centres and other identified

centres;

DS1 9 L1

“…feasibility studies to determine the scale and distribution of commercial

floor space;….”

Page 4-52, DS1 9 L2

Offer commercial floor space based on demand to avoid over supply

DS1 9 L3

To implement commercial development through infill

DS1 9 L4

Allowing and encouraging the change of use of buildings

It can be concluded that there are

already statements pertaining to infill

development through the use of

sequential approach being specifically

mentioned in the policies. However, as

extracted above, much of the policies

on infill and town centre development

refers to the commercial sector.


6-7


b. The State Structure Plan of Negri

Sembilan

Table 6.3 : Negri Sembilan State Structure Plan – Contents related / implied with Sequential

Approach


DRS NEGERI SEMBILAN 2001-2020

1 Page 4-2-4 – Policy: GT-DU2

The physical development of the State shall be guided within 4 categories:

i. Zones suitable for development;

ii. Zones that can be developed with conditions

iii. Zones unsuitable for development;

iv. Zones prohibited from development.

2 Page 4-2-5 – Policy : GT-DS5

Encourage “infill” development in town centres in areas that are not

developed, and redevelopment of dilapidated areas in town centres.

3 Page 4-2-14 – Policy : GT-DU5

The development of Town Centres shall concentrate on strategic growth

nodes based on the clear hierarchy and function/theme of special centres.

4 Page 4-2-18 – Policy : GT-DS13

Optimize urban landuse by ”infill” development and control the

development of new centres.

5 Page 4-4-7 – Policy : PD-DS2

Ensure the balanced distribution of floor space; additional floor space shall

be encouraged within existing town centres.


Structure Plan of Seremban Municipal Council 1998-2020

1

2

Page 3.1-5 – Policy : KP 5

The development of town centre through “infill” shall be adapted with the

surrounding developments.

Page 3.5-5 – Policy : PN 4

The development of commercial complexes shall be encouraged to

optimize the town centre land use.

The table above also indicates clearly

that provisions have been made for the

incorporation of the sequential

approach or any other approaches

towards the limitations of urban sprawl

and for a more compact city.


6-8


iv. The Uniform Building Bye Laws

For purposes of encouraging infill

developments and redevelopment

within city centres where lot sizes are

limited or even where the

redevelopment involves the

preservation of the existing building, the

UBBL (as at July 2006) may have some

restrictions. Older buildings within city

centres do not have setbacks and

often are built to line to the lot

boundary or abutting a street. The re-

use of these buildings for commercial or

residential use (as encouraged in

implementing the Sequential Approach

especially within conservation zones)

should be made possible.

Section 32 (1)(a) and (b) states the

following:

“ 32. Space about buildings abutting a

street and a backlane.

(1) The open space for buildings

abutting a street and backlane

shall be –

(a) in respect of residential

buildings, not less than one-

third of the built-on area of

the building lot; and

(b) in respect of other

buildings used for non-

residential purposes, not less

than one-tenth of the built-

on area of the building lot.”

Even if the building is abutting a street

and has no backlane, the UBBL still

requires that a space be provided at

the back. For an existing building which

has heritage values and that has been

identified for adaptive re-use under the

Sequential Approach, this section may

prove prohibitive.

Section 33 states the following:

“ Section 33. Space about buildings on

lots abutting a street and having no

backlane. For the building on a lot

abutting a street and having no

backlane, the open space shall be

situated at the rear of the building and

shall extend across the full width of the

lot.”

Therefore, in order that the Sequential

Approach be possible, the Uniform

Building Bye Laws would have to

looked at in greater detail to allow for a

more compact development

approach, but one which would not

jeopardize or compromise on safety.


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v. Strata Titles Act 1985 (Act 318)

The Strata Titles Act 1985 (Act 318)

underwent an amendment in 2006 with

regards to section 6. This section states

that :

„Any alienated land having two

or more buildings held as one

lot under final title (whether

Registry or Land Office title) shall

be capable of being

subdivided into land parcels

each of which is to be held

under a strata title or as an

accessory parcel‟.

This amendment literally allows for the

development of landed strata

developments, just like any other

landed properties. However, the

differences are that:

Formation of a Management

Corporation (MC)

No need for the surrender of

roads to the Local Authority

Able to develop a gated

development based on a

legislative provision;

In such a circumstance, the

amendment to the Act has

encouraged developers to open up

new areas for strata landed properties

for the following reasons:

A high demand for such

properties from buyers

Current Lifestyle choices

A network of good roads that

provide good connectivity from

the city to the peripheral areas

The developer is able to sell at a

much higher price the land

which was originally much

cheaper due to the agriculture

status previously;

Moreover, the developer is able to

meet demand for exclusive properties

that has the perceived elements of

safety, greater privacy and having a

home on some land.

Thus, the amendment to the Strata Titles

Act has encouraged increased

development in the outer areas,

compared to previously, when strata

developments were confined to city

centres, due to the higher densities and

non-landed nature. The Act and its

implications on urban sprawl will have

to be looked at in further detail, and

because it is within the realm of

another Ministry, further discussions,

collaboration and coordination will

have to be undertaken in order that


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urban land is better managed and the

objectives of sustainable urban

development is achieved.

vi. Local Government Act 1976 (Act 171)

The Local Government Act 1976

provides for the administrative and

management powers and conduct of

business of the local authority in

managing its area. Under this Act, the

local authority has the power to make

by-laws, rules and regulations (Part XIII,

section 102) which are to be confirmed

by the State Authority (section 103).

One of this that pertains to the issue of

city centre development will be the

powers to set regulations on car

parking requirements. As city centre

land values are very high, development

costs will naturally be higher than in

other areas. The imposition of car

parking standards and requirements for

city centres may be prohibitive on the

development costs. It may be that to

encourage city centre redevelopment

as well as to achieve the goals of

sustainability and greater use of public

transport, car parking requirements for

city centre developments for

commercial, residential or institutional

uses, be lowered. These regulations

can be made under section 102 of the

Act.

6.1.1 Summary

It can be inferred that based on the

study undertaken herewith, several

elements that are pertinent to the rest

of the study and should be considered

henceforth are as follows:

i. There are no clear and succinct

legislative provision in Malaysia

regarding sequential approach;

ii. The Sequential Approach as used in

the UK has been brought about

through strong political support and

political will;

iii. There are already statements of

policies and strategies towards city

centre development, sequential


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approach and transport oriented

developments in the National

Physical Plan, the National

Urbanization Strategy, and the

State Structure Plans of Penang and

George Town;

6.2 The Sequential Approach, Strengths

and Weaknesses in the Malaysian

context.

To recapitulate, the Sequential Approach to

Planning and development is a method of

monitoring physical development in the

planning system and process, ensuring that

physical development meets up with demand.

The approach also ensures that "brownfield"

sites as well as previously developed sites, be

given priority for development, over

"greenfield" areas. In this way, urban sprawl is

minimized, there is no oversupply in

development products (housing or

commercial floor space), and existing

infrastructures are fully utilized.

The Sequential Approach in planning

accentuates the provision of the Structure

Plans and Local Plans in that development

should be undertaken within most suitable

areas, from the city core outwards, and

preferably within areas of good public

transport connectivity. The Sequential

Approach in planning and development has

been in practice in the UK since 1996 through

the Planning Policy Guidance (PPG) No.6

issued by the Department of Environment,

Transport and the Regions, on Town Centres

and Retail Developments, and then followed

by PPG 3, on Housing, in 2002.

Local planning authorities in preparing

development plans should adopt a systematic

approach to assessing the development

potential of sites, and the redevelopment


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potential of existing buildings, deciding which

are most suitable for housing development

and the sequence in which development

should take place.

In identifying sites to be allocated for housing

in local plans and UDPs, local planning

authorities should follow a search sequence,

starting with the re-use of previously-developed

land and buildings within urban areas

identified by the urban housing capacity study,

then urban extensions, and finally new

development around nodes in good public

transport corridors. They should seek only to

identify sufficient land to meet the housing

requirement set as a result of the RPG and

strategic planning processes. In doing so they

do not need to consider all the land in their

area: they should not extend the search further

than required to provide sufficient capacity to

meet the agreed housing requirement.

In determining the order in which sites

identified in accordance with the criteria set

out , the presumption will be that previously-

developed sites (or buildings for re-use or

conversion) should be developed before

greenfield sites. The exception to this principle

will be where previously-developed sites

perform so poorly in relation to the criteria

listed as to preclude their use for housing

(within the relevant plan period or phase)

before a particular greenfield site.

Only if it can be demonstrated that all town

centre options have been thoroughly

addressed and a view taken on availability,

should less central sites in out-of-centre

locations be considered for key town centre

uses. Where development proposals in such

locations fall out with the development plan

framework, it is for developers to demonstrate

that town centre and edge-of-centre options

have been thoroughly assessed. Even where a

developer, as part of a sequential approach,

demonstrates an out-of-centre location to be

the most appropriate, the impact on the

vitality and viability of existing centres still has

to be shown to be acceptable. Furthermore,

the development should be easily accessible

by a choice of means of transport and not be

dependent on access solely or mainly by car.

The majority of customers and staff in the

forecast catchment area should be served by

networks for walking and cycling and regular

and frequent public transport services.


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In preparing development plans, planning

authorities should take account of the broad

forecasts of retail demand, deficiencies in

retailing provision (if any), and how the retail

sector is likely to respond to that demand over

the plan period, by reference to location and

type of retailing. Likewise, they should take

account of the market demand for other

related developments, such as commercial

leisure developments. They should, in

consultation with business interests and the

local community, seek to agree a framework

for promoting the retailing and commercial

leisure roles of town centres, co-ordinated with

their policies on transport, car parking and

regeneration. This should lead to a town centre

strategy involving the private sector including

retailers, leisure operators, property owners and

investors, and infrastructure providers, setting

out the scope and policies for change,

renewal and diversification.

Planning authorities should identify and build

on the essential qualities of the town centre

and seek to ensure that it meets the needs of

the community it serves. They should take

account of the dynamic nature of the retail

and leisure industries and the need to make

good use of existing infrastructure investment in

town centres. In this way, the town centre

strategy can then be reflected in the

development plan. Important considerations

will include:

the opportunities for growth, improvement

or redevelopment (including sites on the

edge of centres) and the need to

encourage the best use of existing facilities;

the scope for diversification of uses to

broaden the range of town centre

activities ;

accessibility, the impact of traffic, and the

availability of public transport ;


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the need to retain and improve open

space and recreational opportunities;

the opportunities for housing and offices,

particularly in mixed-use developments;

and scope for adding to the quality of the

urban environment.

Plans should be soundly based on up-to-date

information. Retailing policies and proposals in

development plans should therefore be based

on a factual assessment of retail developments

and trends. Data on the quality, quantity and

convenience of retailing in the area and the

potential capacity for growth or change in the

shopping centres will be important to ensure

plan policies and proposals are properly

informed. Where appropriate, authorities

should maintain time series data on shopping

patterns set up by former authorities.

The validity of any assessment will depend

particularly on the quality, quantity and

relevance of the information obtained. It is

therefore important for an authority to ensure

that data are as comprehensive, accurate,

and up-to-date as possible. Relevant data

might include population change, economic

growth or decline, retail floor space, shop

counts, expenditure patterns, car parking,

accessibility, pedestrian flows and consumer

attitudes.

Based on the understanding of the

mechanisms and implementation tools of the

Sequential Approach, the Study team

formulated and itemized the strengths and


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weaknesses of the approach in light of the

situation in Malaysia. The following are the

findings:

6.2.1 Strengths

One of the advantages of

implementing the sequential approach

is that priority of development is given

to the existing town centres. As cities

everywhere have developed in the

past towards a sprawling city or

towards suburbia, the sequential

approach provides

the city with a

mechanism to

encourage

development back

into the city centres.

Where once city

centres were quiet

and devoid of activity

once the workers

leave the city for their suburban homes,

the city centre can now become alive

and vibrant with the new

developments if housing and

commerce remain within the centres.

The city centre is thus revitalized.

The new developments within city

centres have also been in the form of

mixed developments where commerce

and residential use can be developed

within a single plot of land. Vertical

mixed use maximizes land use and is a

complete turnaround from the

traditional single zone land use

planning. This encourages the

compact city developments as against

the sprawling city development which

has a larger take up on land resources.

Sequential Approach implemented in

the United Kingdom has also meant

that many buildings worthy of heritage

has been revitalized through

rehabilitation into commercial use.

These have indirectly encouraged

greater professional skills and creativity

amongst planners, architects,

designers, etc. The use of the

Sequential Approach in the United

Kingdom has also meant that

developments are more orderly, in that

developers are encouraged to build

within city areas before they “leapfrog”

into greenfield areas, such as what

happens in most cities of the world.

The compact growth and

development of the city has also

meant that there is a lack of wastage

on existing infrastructure costs and a

saving in the long run in terms of

infrastructure cost provision.


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Developments of city centres make use

of existing infrastructures and utilities,

whereas new developments on the

outskirts meant that new infrastructures

have to be laid out, incurring greater

pressures on limited resources.

Developing within city areas means

taking advantage of already available

resources in the form of utilities

(electricity, water, sewerage and

drainage) as well as communications

and transportation networks.

6.2.2 Weaknesses

For Sequential Approach to really be

attractive and work towards a win-win

situation for the private sector,

government (city authorities) and the

community, one essential factor is that

of a public transport system. The areas

to be developed in the city centres

must be adequately supported by a

network of public transport system that

is integrated. Accessibility form any

point to the site must be available, not

just to attract people coming into the

area to shop or work, but also for the

people who will reside in the city areas.

Such a factor is almost non-existent in

many cities in Malaysia. Even if there

are public transport, these would not

be integrated nor have an extensive

service coverage.

To initiate the Sequential Approach‟s

implementation in any city in the

country, a pilot project in the city

centres should be initiated to provide

an example of the project viability. It is

usual that a pilot project be initiated on

government land wherever possible.

This may be a limitation as most

state/government lands within city

centres are all taken up. There could

be possibilities of lands for

redevelopment and these could be

initiated as pilot projects to use this

approach.

In Malaysia, incentives are always

sought after by developers when new

ideas or development policy

approaches are introduced. In the UK,

government incentives were initiated at

the very beginning of the Approach‟s


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implementation. Once developers saw

the viability of city centre revitalization,

no further incentives need be given.

These initial incentives have become

policies and standards by then.

However, for this approach to be

introduced in Malaysia, much

incentives will have to be initiated.

Incentives such as reduction of car

parking facilities within the proposed

development, may backfire when

there is a lack of comprehensive public

transport. Thus one incentive may be

linked to a lack in another.

Another weakness in the Approach,

which may also be its strength is the

need for close monitoring of

development applications so that there

is sufficient control in the

implementation of the Approach as

well as development trends. Data

collection will support the close

monitoring of the trends of

development applications, approval

and construction to completion. Such

practices are still at the infancy stage in

most cities in Malaysia.

Most local authorities in the country

have yet to build up a proper

database that can be interactive and

that includes easy data retrieval.

Admittedly, only the larger more

established local authorities have such

database facility which has yet to be

examined in terms of effectiveness in

monitoring and data retrieval that

could support and be designed

towards the implementation of the

Sequential Approach.


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Many of the country‟s Structure and

local plans lack the detail

implementation strategy to achieve the

objectives of the Sequential Approach.

For sequential approach to work,

further details of the local plan must be

formulated. These should contain even

more details such as the identification

of particular lots that can be

developed/redeveloped within the

sequential approach strategy, the

permissible plot ratios, the allowable

densities, setbacks, height of buildings,

commercial/residential mix ratio, car

parking standards, the entry and exit

points of the plot, etc., If the

redevelopment to be undertaken

includes a historic site or building, then

more details need to be formulated so

that any developments will not be in

contradiction with the Structure or local

plan. All these details will have to

worked out within the current costs of

land, development costs, current fiscal

policies, etc.

6.2.3 Opportunities

The above weaknesses in the

Malaysian Planning and management

system allows further opportunities for

improvement. Thus there should be

more effort to formulate detailed

development guidelines for city

centres which include height and

densities, plot ratios, setbacks and built

to line, vertical mix development ratios,

parking exemptions, etc.

There will also be opportunities to

preserve and rehabilitate buildings as

well as areas of heritage value. As such

detailed development guidelines

should be formulated so as to guide

potential developers on the design of

the buildings for modern day use. Thus,

this effort will help generate the

creation of lively and vibrant city

centres.

Should the sequential approach be

implemented throughout the country, it

will be an even greater opportunity to

expedite the development and

implementation of a comprehensive

integrated system of public

transportation as the two goes hand in

hand and is systemic of one another.


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6.2.4 Threats / Challenges

As earlier mentioned, one of the

shortfall of the Approach should it be

accepted for implementation in the

country is the high cost of land in city

centres, which will off set the profit

margin of potential developers. This,

coupled with large hinterlands which

are privately owned surrounding many

cities, makes development outside of

cities much more easier

and profitable. The

Malaysian preference for

landed properties is

another factor for

development outside of

city centres.

The implementation of the

Approach in the UK saw

great political commitment

from policy makers,

followed by extensive

implementation by local

councils in the form of guidelines and

incentives (initially). As such, strong

political commitment from the top

politicians will be required should such

a strategy be implemented in the

country. However, from the experience

of the development plan system in

Malaysia, there still lacks strong political

will and support, despite the fact that

these plans would have gone through

the political processes of approval and

acceptance.

Another element of the limitations of

the sequential approach would be the

lack of community facilities within city

centres to support a large and mixed

population that would be living therein.

Facilities such as schools, parks and

religious facilities shall be difficult to

provide unless there is a change of

policies by other ministries, such as

multi-storey school buildings with roof

top recreational facility.

To enable the approach to be

implemented, further examination of

guidelines on developers must be

undertaken. There are many

restrictions imposed on developers

(such as the compulsory building of low

cost housing) to enable them to build

according to the Approach‟s

strategies.

Currently, traffic management in city

centres have broken up communities


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living in it. One way systems in cities like

George Town, Seremban, Kuantan,

Batu Pahat, Alor Setar, etc., which have

been implemented to reduce

congestion, have actually broken up

communities. The roads have become

wider and more difficult to cross; the

continuous traffic flow has also forced

many residents to stay on their side of

the road, as it becomes too dangerous

to cross the road to meet neighbours.

Table 6.2 : Summary of the SWOT Analysis

S T R E N G T H S W E A K N E S S E S

1. Compact city

2. mixed development

3. orderly growth

4. Towards safe city

5. savings on infra cost

6. Greater accessibility

7. Towards sustainability

8. Re-vitalisation of heritage buildings

1. Lack of incentives

2. Public Transport

3. Transport network

4. Lack of government/ municipal land

5. No monitoring of development

6. Lack of sufficient control

7. Lack of database

8. Detail implementation strategy to

achieve policies

O P P O R T U N I T I E S T H R E A T S

1. Creation of development

guidelines for developers

High densities

Built to lines

No parking provision

Mixed development

2. Preservation/Conservation of

heritage building in City Centres

3. Promotion/ upgrading of public

transportation services

4. Re-vitalisation of City Centres

1. High land cost in City Centres

2. No political commitment

3. Huge private owned land bank outside

and inside City Centres

4. Malaysian preference for landed

property

5. Restrictions for development by

developers

6. Lack of community facilities to sustain

city living

7. Traffic management in City Centres

breaks the community.

Source: Study Team


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6.3 Criteria Required For Implementation of

the Sequential Approach

i. Need for Strong Political Will

From the analysis of

the two cities‟

growth made earlier

and the SWOT

analysis, it can be

implied that the

most important

criteria for the

successful

implementation of

the Sequential

Approach is

political will.

Without political will,

most developers will

not support the idea

nor will any implement such as a

strategy. The bottom line of the private

sector is profits. Any new policies that

affect the profit margin of companies

will be unpopular, which will in turn

affect political support. Thus, only if

politicians in the country well and truly

believe in the importance of

sustainable urban management, will

there be strong political support for the

implementation of the Approach.

ii. Fiscal Incentives

In line with this, another element for the

Approach to work will be the kinds of

incentives to be given out. Incentives

such as the One Stop Centre alone will

not work as the OSC applies to all

development applications regardless of

location. Fiscal incentives as that

affecting company taxes, or transfer of

development rights should be further

explored. Other simultaneous controls

such as that of “pioneer status” should

be studied for its feasibility. Again,

these are all related to political will, as

fiscal incentives are only awarded by

the Ministry of Finance and Bank

Negara.

iii. Availability of an Integrated Transport

System

For the Sequential Approach to be

implemented successfully in the country

and within the major cities, the

availability of an integrated public

transport system is pertinent. Easy

accessibility of the development with


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areas from outside the city as well as

inside, would be one of the factors that

would make the development viable.

Another major requirement for

implementation would be that there

must be clear implementation and

execution strategies that are

transparent and readily available for

the public. These are important

elements that would make the

Sequential Approach readily

understood and accepted by those

who will implement as well as execute

the development plans. These would

include not just the developers but also

the utility companies and agencies,

and other external departments.

iv. Comprehensive and extensive data

base and close monitoring

The local authorities must also be

prepared with a sound and

comprehensive data base to manage

and monitor the implementation of the

Approach. Data such as the locations

of the preferred sites, ownership,

development rights and guidelines, all

must be made available. Further to

that, once an application has been

received, the progress of the

application from planning approval to

construction and completion must be

closely monitored. This is so that the

data on demand and supply will be

available as one of the objectives of

the Sequential Approach is to avoid an

oversupply of properties.

v. Availability of State / Local Government

Land and Brownfield Sites

For the Sequential Approach to first

take off, there must be extensive state

or local government lands or even

brownfield sites for projects to be

implemented. These areas could be

first offered as prime development

areas for pilot projects for private

developers to undertake and

showcase the success of the Sequential

Approach. Unfortunately, such lands

are in very short supply in most

Malaysian cities, as a majority of the

land ownership are in private hands.

vi. Amendments to Some Legislation

Some legislation need to be amended

in order that the Sequential Approach

can be implemented effectively. Some

of these include the following:


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a. Amendments to the Town and

Country Planning Act 1976, especially

pertaining to Local Plans and Special

Area Plans. More details such as detail

design guidelines will have to be

included which shall be based on

property price analysis. Currently, most

Local and Special Area plans lack the

data collection and analysis on

property prices and trends;

b. Amendment to the Uniform Building

Bye-Laws, especially with regards to

building design. The UBBL will have to

be more flexible and allow for

performance based standards rather

than prescriptive regulations;

c. Strata Titles Act – The

recent amendments to allow

for landed properties as

strata developments will

encourage for more gated

communities in areas outside

of city centres. This Act will

have to be re-studied and

address the issue to allow

and encourage for more

intensive developments in

city centres.


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6.4 PROSPECT OF THE SEQUENTIAL

APPROACH - CONCLUSION

From the studies made above, it can be

inferred that the Sequential Approach alone

may not be sufficient to manage urban growth

and avoid sprawl in Malaysia. The Sequential

Approach was first formulated to address the

property overhang in many cities in the UK.

However, as illustrated in this study, property

overhang is not such a major issue in the city of

George Town, although it has been an issue in

the city of Seremban, due mainly to land

speculation. The example of the cities of

Seremban and George Town also indicated

that the Approach may be an inadequate tool

for cities of different sizes, history and urban

growth morphology. Thus, a look at other more

comprehensive approaches will still be

needed.


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