The importance of transparency in the property market in Malaysia has received
substantial attention from regulators, financial institutions, investors and the academic
community, as the information will affect companies’ performance and market
valuation. This is evident from the establishment of DanaHarta and Danamodal; two
agencies under the Ministry of Finance, created to regulate and act to acquire nonperforming
loans through statutory vesting, and to appoint special administrators who
can take control and manage the assets of borrowers unable to pay their debts. Post
Asian financial crisis has also seen the establishment of the National Property
Information Centre to provide advice and supply all property data to the government in
property industry decision making. The establishment of these three agencies are to
acquire more knowledge and information on the market including the property market.
The information and disclosure from the market is crucial for the government in the
decision-making process, specifically for the property market which was severely hit
during the AFC. This has been proven during the Global financial crisis where
Malaysia was one of the countries in South-East Asian that was quick to recovery from
the crisis.