8/7/2019 RAK345

1/13

Housing is a basic social need that is necessary for decent living,providing security and shelter for the family. The four indicators usedin the computation of the Housing Index, are average housing price,percentage of housing units with electricity, percentage of housingunits with piped water and percentage of low-cost housing units to

total low-income households.

The Housing Index was generally on an upward trend during the periodand increased from 90.5 points in 1980 to 107.7 points in 1998 (Figure30). The implementation of housing programs by both the public andthe private sectors has enabled the lower- and middle-income groupsto purchase their own homes.

8/7/2019 RAK345

2/13

HOUSING IN MALAYSIA

There are several options for living in Malaysia:

Bungalows or freestanding homes

Condominiums (apartments with extra facilities) Apartments (usually with limited facilities).

Flats (with bad maintenances)

Recently built condominiums in good areas usually include most of thefollowing - pool, gym, lifts, 24-hour security service, adequate parking,and convenience store and landscape gardens. Security is an issue formany tenants as break-ins occur more frequently than they should.

Real estate agents are plenty in Malaysia. Though it's not a must to

use them, it helps ease the burden from hunting to shuffling papers tomaking payments. However, when using an agent, be as specific aspossible of the living conditions you require; for example, with built-incabinets and wardrobes in the kitchen and bedrooms, or a porch orgarage that is large enough for 3 cars. You might also want to specifythe finishing of the home to suit your taste if you don't intend to bringyour own furniture. Housing in Malaysia as with any other country,differs in price according to location and its furnishing.

Rental Types

Fully-furnished: Walk in with your suitcase and you are pretty muchset. May need only

shop for minor items like bed sheets and curtainsunless negotiated

otherwise with the landlord.

Semi-furnished: You probably need not buy or bring much of the bulkyitems like beds,

lounge set, wardrobe as it would be included. Butcheck first.

Non-furnished: As it means - practically empty. On occasion, some mayhave the kitchen

cabinets, but that's all.

Most leases are for two years. After agreeing the terms and conditionsof the lease you will be required to pay one months rent as earnestdeposit. This should be done at the time you sign a letter of offer

8/7/2019 RAK345

3/13

which will include the basic conditions of the lease. This will eventuallybe used as the first months' rent. It will also state what additionalpayments are due and when they should be paid.

The main thrust of the National Housing Policy is to provide accessible,adequate, affordable and quality housing for all Malaysians,particularly the low income group.

In 1982, the Government imposed a 30% low cost housing quota uponprivate sector developers as a social obligation to complementGovernment effort to provide affordable housing.

2 main types of housing:

High-rise apartments comprising multi storey and 5 storeywalkup flats.

Single and double storey terrace houses.

Depend on land availability and cost.

Pricing

A 4-tier pricing scheme was introduced in June 1998 for the privatesector.

Prior to 1998, all low-cost units were sold with a price cap of RM25,000. Currently depending on house type and location, prices are asfollows:

RM25,000, RM30,000

RM35,000 , RM42,000

Designs and specifications of low cost houses and apartments arecontrolled by way of minimum standards required by the ConstructionIndustry Standards (CIS)

For example, each terrace unit must:

Not exceed 2 storeys

Contain a minimum of 3 bedrooms

8/7/2019 RAK345

4/13

Have a floor area of 60 sq meters

Contain a living and dining area, kitchen, bath and toilet areaand storage room

The 9thMalaysia Plan Housing Targets, 2006-2010

8/7/2019 RAK345

5/13

The 8thMalaysia Plan Housing Achievements

Key Highlights of Private Sectors Achievements:

Completed 243.2% of low cost targets. Total completed were97,294 against 40,000 targets

Similarly, medium cost targets of 100,700 were also overachieved at 346.9%

High cost achievement surpasses the targets of 125,000 at261.9%

The only under achievement was for low medium cost houses, at65%

Examples of Current Costs of Providing Low Cost Housing

(a) High-rise Buildings (Excluding Land Cost) e.g. in KlangValley

8/7/2019 RAK345

6/13

b) Single Landed Terrace Houses (Excluding Land Cost) Other Towns

This is our site,

8/7/2019 RAK345

7/13

8/7/2019 RAK345

8/13

8/7/2019 RAK345

9/13

Low Cost Housing Issues

Purchase of new low cost houses is limited to low-income households

as determined by conditions set by Federal and State Governments.

Currently income at RM1, 500 and below.

Applicants of public and private low-cost houses will be selectedfrom a central registry maintained by the State Government.

Clean up the central registration;

Registration to weed out speculators and investors.

Computerization of title registration on Book of Registrar for unitowners where strata title has not been issued.

Registration and Distribution System (Continued)

Applicant details outdated and unreliable.

Applicants cannot be contacted, unsold houses;

Many low-cost houses sold to investors rented out;

Missing the target group

Whilst sale of new low-cost units are regulated, there is nocontrol for subsequent sub-sale transactions.

Vandalism, non-payment of management fees (applicable forhigh rise houses), poor building maintenance

High Occurrence of Crime

Insufficient funds and manpower for crime prevention.

8/7/2019 RAK345

10/13

LOW COST HOUSING THE WAY FORWARD

Government should take over provision of low cost public housing viaits agencies, i.e. Syarikat Perumahan Negara Berhad (SPNB) andSEDCs

As an immediate measure, waive low cost requirement imposed onprivate sector, so that companies who could undertake new launcheswould find it feasible to do so, especially in these difficult times.

Meanwhile, review pricing to reflect current cost, e.g. review price fromcurrent RM42, 000 to RM60, 000 and to RM75, 000 in the Klang Valleyto mitigate increased cost in development.

Government must come out with a budget to refurnish existing low-cost flats/houses -holistic campaign to clean up image of low cost

houses.

Move from low cost to low medium cost and medium cost houses,where:

Government provide social housing only for hardcore poor;

Private sector focuses on other markets.

Low-cost housing policies are to be continued it must emphasizeon quality, not quantity and a good maintenance culture.

Where such quality low-cost are built sub-sales must becontrolled, e.g. no sales allowed except to eligible low income

person, ala HDB of Singapore Special funding from general taxation; where percentage of the

industry players income tax goes to a special fund for affordablehousing. Industry players include developers, bankers,contractors, consultants, building materials suppliers etc.

8/7/2019 RAK345

11/13

GOVERMENTS ACTIONS REGARDING THE HOUSING FOR LOW

INCOME GROUP

REPORT: More Affordable Homes This Year for Low-income Group

KUALA LUMPUR, Oct 23 (Bernama) -- A total of 11,040 affordablehomes under the People's Housing Programme (PPR) will be completedthis year and another batch of 1,914 will be ready next year, accordingto the 2009/2010 Economic Report released Friday.

They are part of the government's targeted 73,251 units of suchhouses to be built under the Ninth Malaysia Plan (2006-2010).

"Providing adequate, quality and affordable housing, especially for thelower income group remains a priority," the report said.

As of end-September this year, Syarikat Perumahan Negara Berhad(SPNB) had constructed 1,200 out of 2,833 units under an allocation ofRM200 million from the first stimulus package.

SPNB is also rehabilitating 4,826 houses in 15 abandoned projects.

-- BERNAMA

Government Committed To Achieving Zero Hardcore Poverty Next Year- Najib

KUALA LUMPUR, Oct 23 (Bernama) -- Prime Minister Datuk Seri NajibTun Razak Friday announced the government's commitment to achievethe target of zero hardcore poverty next year.

Tabling the 2010 Budget in the Dewan Rakyat, he said the effortsincluded assisting the poor and vulnerable groups, eradicating urbanpoverty and increasing home ownership.

Najib, who is also the Finance Minister, said the government wouldallocate RM48 million to implement urban poverty eradicationprogrammes, including welfare assistance and house rental payment.

"The urbanisation rate is increasing rapidly with 63 per cent of thepopulation residing in urban areas. The poverty rate in urban areascontinues to increase due to high cost of living, low income and

8/7/2019 RAK345

12/13

housing problems," he said.

He said that to address urban poverty in a holistic manner, the role of

the Ministry of Federal Territories would be strengthened andexpanded to include urban poverty eradication nationwide, includingthose with monthly income below RM3,000, and that the ministrywould be known as the Ministry of Federal Territories and UrbanWellbeing.

Najib said priority would be given to the low- and middle-incomegroups to own or rent houses provided by the government.

"On Oct 10, 2009, I announced that more than 44,000 low-cost houseswill be sold at a price of between RM21,500 and RM35,000 per unit by

Kuala Lumpur City Hall and the National Housing Department (JPN) byend-2010. As an additional measure, JPN will also provide 74,000 low-cost houses to be rented in 2010," he said.

Najib also said that so far 148 private projects had been abandoned,involving 49,913 units and 31,824 buyers.

Of these, 87 projects were yet to be rehabilitated, with 41 projectsinvolving low- and medium-cost houses, he added.

As such, he said, the government would consider extending

appropriate financial assistance to rehabilitate low- and medium-costhouses based on the existing project list, for which an allocation ofRM200 million would be provided under the Ministry of Housing andLocal Government.

Najib also said that the government would launch a scheme thatenabled Employees Provident Fund (EPF) contributors to utilise currentand future savings in Account 2.

"This will enable them to obtain higher financing to purchase higher

value or additional houses. This scheme aims to increase thepurchasing power of EPF contributors and is limited to the purchase ofone house at any one time and subject to conditions stipulated by EPF.The scheme will be launched in January 2010," he said.

Najib said the government would also implement various programmesto assist the poor and vulnerable groups, adding that efforts would betaken to reduce the poverty rate from 3.6 per cent in 2007 to 2.8 per

8/7/2019 RAK345

13/13

cent in 2010.

-- BERNAMA