Bring­ing af­ford­able hous­ing to the peo­ple

The Sun (Malaysia) - - SUNBIZ -

Af­ford­able Hous­ing pro­grammes un­der the fed­eral gov­ern­ment

Peo­ple’s Hous­ing Pro­gramme (PPR) Pro­vide houses priced RM30,000RM35,000 in Penin­su­lar Malaysia, and RM42,000 in Sabah and Sarawak for low in­come earn­ers and squat­ters with in­come be­low RM2,500.

Im­ple­mented by Ur­ban Well­be­ing, Hous­ing and Lo­cal Gov­ern­ment Min­istry.

Hous­ing As­sis­tance Pro­gramme (PBR) Pro­vide fi­nan­cial and man­age­ment as­sis­tance to build new or re­pair ex­ist­ing houses. Al­lo­ca­tion for new house is RM21,000-RM50,000 and for re­pair of di­lap­i­dated/dam­aged houses is up to RM12,000. Tar­get groups are the hard­core poor reg­is­tered with the e-Kasih sys­tem.

Im­ple­mented by Ru­ral and Re­gional Devel­op­ment Min­istry.

1Malaysia Peo­ple-Friendly Houses (RMR1M) En­able low in­come in­di­vid­u­als with monthly in­come of RM750RM3,000 to build houses priced at RM65,000 (Penin­su­lar Malaysia) and RM79,000 (Sabah and Sarawak) on their land with the gov­ern­ment sub­si­dis­ing RM20,000.

Im­ple­mented by Syarikat Peruma­han Ne­gara Bhd.

Fed­eral Ter­ri­to­ries Af­ford­able Hous­ing (RUMAWIP) Pro­vide and de­velop af­ford­able houses be­low RM300,000 for house­holds with in­come be­low RM15,000 and sin­gle in­di­vid­u­als with in­come be­low RM10,000. Projects are man­aged by lo­cal au­thor­i­ties namely Kuala Lumpur City Hall, Per­badanan Putrajaya and Per­badanan Labuan.

Im­ple­mented by Fed­eral Ter­ri­to­ries Min­istry.

Peo­ple’s Dream Houses De­velop houses priced not more than RM350,000 for house­holds with in­come of RM10,000 and be­low.

Im­ple­mented by Syarikat Peruma­han Ne­gara Bhd.

1Malaysia Peo­ple’s Hous­ing (PR1MA) Plan, de­velop and con­struct houses priced RM100,000-RM400,000 in key ur­ban cen­tres for house­holds with in­come of RM2,500-RM10,000.

Im­ple­mented by Per­badanan PR1MA Malaysia.

1Malaysia Civil Ser­vants Hous­ing (PPA1M) Pro­vide af­ford­able houses priced 20-30% lower than the mar­ket value for civil ser­vants with monthly in­come of less than RM10,000.

Im­ple­mented by PPA1M Unit un­der the Prime Min­is­ter’s Depart­ment.

Sup­ply The gov­ern­ment has com­pleted a to­tal of 183,755 units of af­ford­able houses as of De­cem­ber 2015, with 214,011 units un­der con­struc­tion and 309,571 units at the plan­ning stage.

Ac­cord­ing to the Eco­nomic Re­port 2016/17, a to­tal of 96,254 units were un­der con­struc­tion as at end-Au­gust 2016 and 10,000 units are ex­pected to be com­pleted by end of 2016 un­der PR1MA.

Mean­while, RMR1M which en­ables land own­ers to build houses on their land since 2002, has seen a to­tal of 36,316 houses com­pleted and 1,626 houses un­der con­struc­tion as at end-Au­gust 2016.

The PPR which aims to re­solve squat­ters’ re­set­tle­ment and house own­er­ship is­sues among low in­come earn­ers, this year, aims to build 13,130 apart­ment units and 5,542 units of ter­race houses for squat­ters and low in­come house­holds with a monthly in­come of less than RM2,500.

Since 2002, a to­tal of 80,252 houses were com­pleted and as at end-Au­gust 2016, 8,928 unit apart­ments and 2,452 units of ter­race houses were un­der con­struc­tion. In ad­di­tion, 4,202 unit apart­ments and 3,090 units of ter­race houses are in the plan­ning stage.

Un­der the Felda Next Gen­er­a­tion Hous­ing Pro­ject, a to­tal of 8,470 houses are un­der con­struc­tion as at end-Au­gust 2016 while RM4 mil­lion was spent on the devel­op­ment of 1,183 houses un­der the Fel­cra Sec­ond Gen­er­a­tion Hous­ing Pro­ject as at end-Au­gust 2016.

Mean­while, the Risda Sec­ond Gen­er­a­tion Hous­ing Pro­ject was launched in Au­gust this year and the con­struc­tion of 100 houses com­menced in Septem­ber.

The gov­ern­ment aims to build 512 houses in Orang Asli set­tle­ments un­der PBR. Con­struc­tion work in Ke­lan­tan, Ne­gri Sem­bi­lan, Pa­hang, Perak and Se­lan­gor com­mence in May 2016 and is ex­pected to be com­pleted by next month. The PBR ini­tia­tive also fo­cuses on build­ing or re­pair­ing houses for se­nior ci­ti­zens, in­firm and dis­abled, and sin­gle moth­ers. As at endAu­gust 2016, RM123.3 mil­lion was dis­bursed ben­e­fit­ting 5,972 par­tic­i­pants. For civil ser­vants, a to­tal of 18,162 units were un­der con­struc­tion as at end-Au­gust 2016 un­der PPA1M, while 499 units have ob­tained the Cer­tifi­cate of Com­ple­tion and Com­pli­ance. Another 17,665 units were granted Devel­op­ment Or­der ap­proval and 6,045 units were granted Build­ing Plan ap­proval. The gov­ern­ment aims to build 100,000 units un­der PPA1M by 2018 with prices rang­ing be­tween RM90,000 and RM300,000. Un­der 2016 Bud­get Re­cal­i­bra­tion, houses priced RM300,000 and be­low were lim­ited to first-time house buy­ers. To en­cour­age the con­struc­tion of such houses, the 3% de­posit on to­tal devel­op­ment cost with the Ur­ban Well­be­ing, Hous­ing and Lo­cal Gov­ern­ment Min­istry was ex­empted ef­fec­tive this year. To strengthen the man­age­ment and de­liv­ery of af­ford­able hous­ing, the gov­ern­ment an­nounced the es­tab­lish­ment of the Na­tional Hous­ing Data Bank un­der the Na­tional Hous­ing Depart­ment as an in­te­grated data­base on hous­ing and ac­cel­er­a­tion of the adop­tion of in­dus­tri­alised build­ing sys­tem. Fi­nanc­ing On the de­mand side, the gov­ern­ment in­tro­duced sev­eral mea­sures to pro­vide bet­ter ac­cess to house fi­nanc­ing and sub­sidy schemes such as First House De­posit Fi­nanc­ing Scheme (MyDe­posit), My First Home, My Home, Youth Home, Hous­ing Credit Guar­an­tee and with­drawal from Ac­count 2 of Em­ploy­ees Prov­i­dent Fund.

As at end-Au­gust 2016, 1,624 buy­ers ben­e­fit­ted from MyDe­posit.

The gov­ern­ment also placed a 10-year mora­to­rium on all PR1MA and PPA1M home­own­ers, re­vised up­wards the Real Prop­erty Gains Tax and im­posed max­i­mum loanto-value ra­tio of 70% for third house fi­nanc­ing.

Curb­ing price in­creases To de­ter spec­u­la­tive ac­tiv­i­ties, the gov­ern­ment abol­ished the De­vel­oper In­ter­est Bear­ing Scheme, which caused house prices to in­crease.

In­stead, the gov­ern­ment en­cour­age the build-then-sell con­cept where fi­nanc­ing loans do not com­mence un­til prop­er­ties are com­pleted, which pro­tects buy­ers from the risk of aban­doned projects.

In 2009, the gov­ern­ment em­barked on its ini­tia­tive to re­solve aban­doned hous­ing projects. As at end-Au­gust 2016, 182 or 80% of the to­tal aban­doned hous­ing projects were re­solved, ben­e­fit­ting 32,641 buy­ers.

A to­tal of 20 projects in­volv­ing 4,610 buy­ers are in var­i­ous stages of con­struc­tion, while another two projects with an al­lo­ca­tion of RM20 mil­lion are be­ing re­vived.

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