Malaysia and China are set to sign a memorandum of understanding (MoU) to develop smart homes, smart cities and urban planning (“Nga to sign MoU with China on housing, urban planning, smart cities”, The Edge Malaysia, June 18).
The agreement is expected to bring great benefits to both countries by promoting cooperation and knowledge sharing, leading to advances in technology and urban planning that will benefit both Malaysia and China.
Furthermore, the cooperation will enable the two countries to strengthen their economic sectors, improve skills and knowledge, create employment opportunities and attract new investments in property development. The initiative is seen as a means to strengthen bilateral ties between Malaysia and China.
This initiative will help Malaysia achieve the goals outlined in the Ministry of Housing and Local Government Strategic Plan 2021-2025 and achieve targets related to the 12th Malaysian Plan on Urban Development and Housing for the Nation.
A “smart home” or “smart house” is a residence equipped with advanced technology, including computers and digital systems, that are designed to automate tasks and conveniently control different aspects of the home, making life easier for the occupants.
Examples of smart home devices, structures and installations include CCTVs, routers, automatic lighting controls, alarm systems, sensors, intercoms, video conferencing equipment, smart TVs, smart lighting systems, smart thermostats, smart door locks and openers for garages, smart cameras and security systems, smart pet care and lawn care, smart kitchen appliances, smart home monitors, smart plugs and more.
The needs of a smart home depend on the requirements and preferences of the occupants. A smart home helps residents lead a more convenient, safe, cost-effective and efficient lifestyle.
Some smart homes are customized to cater to specific groups, such as the elderly, people with disabilities, children, or residents who require special amenities that improve their quality of life, convenience, and safety.
In Malaysia, several housing sites equipped with smart home facilities have been identified and are being sold to the public. Smart homes are more expensive than regular homes due to the special features they come with.
The construction of a smart home requires local government approval and is subject to the provisions of the Roads, Drainage and Building Act 1974 (Act 133), the Uniform Building By-laws 1984 and smart home guidelines set out by the authorities.
These regulations ensure that the construction of smart homes promotes sustainable development. If developers do not comply with these provisions, a completion and compliance certificate will not be issued and the home cannot be occupied or sold to the public.
However, smart home implementation comes with several challenges and issues.
The first problem is the cost of building and selling smart homes, which are typically more expensive than regular homes and therefore only affordable for the wealthy.
The second issue is that residents are burdened with the additional maintenance and repair costs of smart home devices. Smart home equipment typically comes with a limited warranty period, such as two years, after which residents must cover the costs of maintenance and replacement.
Importing smart home devices from overseas can be time-consuming and expensive, and some residents find it complicated and resort to manual methods instead of using digital tools.
There are big challenges in making smart homes accessible to all social classes, especially the lower-income classes. Moreover, the issue of smart home data hacking needs to be taken into account as it poses a threat to the security of smart home residents.
The Housing Development (Control and Licensing) Act 1966 (Act 118) makes specific reference to Schedules G, H, I and J of the Housing Development (Control and Licensing) Regulations 1989, which outline the form of a statutory sale contract.
In particular, these schedules, especially the second and fourth schedules, do not require you to provide a list of smart home equipment, smart home construction, and smart home tools.
As a result, in the absence of such requirements, situations may arise where a developer would not be obliged to repair or replace smart home tools or equipment if they become damaged, defective or become unusable during the Defects Liability Period (DLP), which is 24 months from the date of handing over vacant possession of the residential unit to the purchaser.
In addition, the lack of information and descriptions about smart home equipment, structures and facilities in the legal sales contract may lead to fraudulent practices by developers. This may occur when smart home tools and facilities promised in posters, advertisements and brochures are not provided, as there are no mandatory rules requiring such information and descriptions to be included in the legal sales contract. This situation may lead to losses and unfair situations for the buyer.
The author suggests that in order to provide fair protection and assurance to smart home buyers, a list of smart home equipment, structures and fixtures should be included in the second and fourth schedules (Schedules G, H, I and J) of the statutory sale contract, otherwise the developer may not be able to repair or replace any damage or defects in the smart home fixtures, structures and fixtures during the DLP period as these items are not specified in the sale contract.
Even though the limitation period for claims for damages due to a developer's negligence has been extended to 15 years as provided for in Section 6A of the Prescription Act 1953 (Amended 1981), purchasers may be denied the right to claim compensation for the developer's negligence in the provision of smart home fixtures and equipment.These issues and challenges regarding the implementation of smart homes in Malaysia need to be brought to the public's attention.
In addition to the price and cost of the smart home, the issue of hacking and fraud of smart home data should be addressed by incorporating specific clauses and conditions in Schedules G, H, I and J, including a list of facilities, structures and smart home tools to protect the rights of buyers.
Implementing these proposed changes will increase public trust and confidence in smart homes, contributing to a successful and sustainable development plan for the wellbeing of our people.
The writer is a graduate of the Faculty of Law, University of the North Malaysia and is also an executive committee member of the Malaysian Academic Society Council. Comments: letters@thesundaily.com