What are the most significant cases or transactions that your legal team has recently been involved in?

Over the years, there have been rapid changes and enforcement along with significant introduction and implementation of new acts, laws, rules and regulations. Being in the construction and property management industry, we encounter various hurdles – the most common being dissatisfied customers due to defects and anomalies in their homes. As builders, we do our best to meet their demands and satisfaction; nonetheless, as our properties are mainly stratified, we should comply with the Strata Management Act as well, and thus, many recent cases or rather the biggest challenges that we currently face are having to explain the Act to the customers who at large refuse to comply with it. This is mainly because Strata living is relatively new in Malaysia, and many need to become more familiar with the Act enforced; let alone do they know that they are bound to comply with the said Act and by-laws that regulate and govern the Strata lifestyle. For example, the renovation of a home is strictly guided only to allow minimum renovation that does not change the facade of a house. However, owners feel that they have invested so much money into their dream homes but are now not allowed to renovate following what they want; instead, they are bound to comply with specific renovation guidelines. We have faced many instances where residents refuse to comply with the guidelines, citing that it is their own home and space and that they would do as they wish. Some others come to us and claim to comply with the guidelines only to obtain the required approvals. Once given, they proceed with renovation works that are entirely different from the submitted designs, and thus when inspections are carried out, it is then brought to our attention that the renovation differs totally from what is allowed and thus, despite many attempts of trying to discuss and explain to them to reinstate to its original plan wherein approvals were given they then refuse to adhere leaving us with no choice but to file a case to tribunal and if they do not comply with the award provided for by the tribunal we will then need to file a submission in a Court. While as builders, we value all our customers, as property managers, we need to comply with the laws, and sometimes we lose customers in trying to uphold the law. It is an uphill battle and an ongoing challenge as customers familiarise themselves with the Stratified lifestyle strictly regulated by the Strata Management Act and by-laws. These cases are significantly important; as builders are transitioning from non-stratified to stratified developments, along with it comes various requirements to adhere to and comply with the Act and by-laws that buyers and customers are still in the process of trying to learn, know and understand completely. Also, as practising counsel on Strata related issues, we notice there is a gap between what is stipulated in the Act versus customer needs, and this is mainly due to the fact that initially, the Strata Management Act was explicitly written for high-rise living and management of the same but did not consider landed properties at that time since it was not common for landed properties to be stratified. However, along the way, things have changed rapidly and now, for builders, stratified property is the way forward. As such, when adopting the Strata Management Act for landed properties, the contents were primarily relatable for high rise rather than for landed properties. Given this, a review of the Act is necessary to meet the requirements of landed properties to be fair and just to landed homeowners.

What are some of your main tips for dealing with a crisis?

Some of my main tips for dealing with a crisis are essentially first to understand the details of the problem, to analyse what caused it, the significance of its impact in terms of the current situation (how bad is it?), is there a need for a reactive phase and a subsequent strategic management phase. I would also thoroughly consider the consequences of the crisis, precisely determining the risk involved, whether reputational risk, risk of any legal consequences or any other risk. It is essential to evaluate the need to form a specific team to manage the situation, such as a crisis management team or a special task force, to focus on dealing with the crisis. This is to have adequate control over the situation and to focus on finding the solution. Undoubtedly with, a specific team in place, it will ensure communications protocol and maintain confidentiality expectations to prevent any miscommunication or misrepresentation of any sort and to avoid any confidential information being leaked. Also, it is essential to ensure all data and information are fully understood and evaluated before making critical decisions; thus, a detailed analysis by the specifically formed team is of the essence. Another tip is to set short-term tasks and actions to deal with the immediate issues and strategic plans to overcome the problem in the long term ultimately. It is also essential to ensure the organisation is adequately organised with the right skill sets to deal with the crisis in the long term. It is crucial to seek collective input as ideas and experience may be required to deal with the crisis. Additionally, specific focus must be placed on internal and external stakeholder engagement and thus ensure key stakeholders are kept informed of the status and progress towards the crisis resolution. As they say, the secret to crisis management is not good vs wrong; instead, it is preventing the bad from getting worse and above are some of the tips I follow in this regard.