Jaujan: Reduce locally produced construction material prices

DEPUTY Chief Minister Datuk Jaujan Sambakong urged the government to reduce the prices of construction materials that are produced in the state such as cement.

Cheaper construction materials can help lower the price of houses, said the Local Government and Housing Minister.

He said while there are houses 'overhang' in the property market in Sabah, the problem is not serious and those not sold are 'expensive' ones costing more than RM300,000 each and are located in urban areas like the state capital, Tawau and Sandakan.

"We have discussed with the developers and they can maybe reduce price but only by about 10 per cent. The ministry proposes that the government should reduce the price of construction materials so that developers can lower the price of their finished products.

"As Sabah is a producer of cement, maybe the government can facilitate for a good price for cement," he said, adding that when houses are affordable, it can reduce some of the problems of people owning houses.

Jaujan, who was replying to Lumadan assemblyman's question at the State Assembly sitting, added that the ministry is doing a study with relevant agencies on the matter.

He also lamented that civil servants are not interested in these houses because they cannot afford them.

"They are interested in the affordable house scheme but the problem here is that civil servants who need houses are earning RM7,000 and below. So with other commitments like car loan, everyday expenses etc, it is not easy for them to purchase the houses.

"They also find it difficult to come up with the deposit if they want to purchase a house. Our ministry has urged the state and federal governments to consider reviewing the bank policy on housing loans. Otherwise we would not be able to resolve the problem," he said.