Housing is a basic social need that is necessary for decent living,

providing security and shelter for the family. The four indicators used
in the computation of the Housing Index, are average housing price,
percentage of housing units with electricity, percentage of housing
units 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 period
and increased from 90.5 points in 1980 to 107.7 points in 1998 (Figure
30). The implementation of housing programs by both the public and
the private sectors has enabled the lower- and middle-income groups
to purchase their own homes.
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 the

following - pool, gym, lifts, 24-hour security service, adequate parking,
and convenience store and landscape gardens. Security is an issue for
many 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 to
making payments. However, when using an agent, be as specific as
possible of the living conditions you require; for example, with built-in
cabinets and wardrobes in the kitchen and bedrooms, or a porch or
garage that is large enough for 3 cars. You might also want to specify
the finishing of the home to suit your taste if you don't intend to bring
your 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 much
set. May need only
shop for minor items like bed sheets and curtains
unless negotiated
otherwise with the landlord.

Semi-furnished: You probably need not buy or bring much of the bulky
items like beds,
lounge set, wardrobe as it would be included. But
check first.

Non-furnished: As it means - practically empty. On occasion, some may

have the kitchen
cabinets, but that's all.

Most leases are for two years. After agreeing the terms and conditions
of the lease you will be required to pay one months rent as “earnest
deposit”. This should be done at the time you sign a letter of offer
which will include the basic conditions of the lease. This will eventually
be used as the first months' rent. It will also state what additional
payments 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 upon
private sector developers as a social obligation to complement
Government effort to provide affordable housing.

2 main types of housing:

• High-rise apartments comprising multi storey and 5 storey

walkup 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 private
sector.

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 as
follows:

• RM25,000, RM30,000
• RM35,000 , RM42,000

Designs and specifications of low cost houses and apartments are

controlled by way of minimum standards required by the Construction
Industry Standards (CIS)

For example, each terrace unit must:

• Not exceed 2 storeys

• Contain a minimum of 3 bedrooms
 • Have a floor area of 60 sq meters
• Contain a living and dining area, kitchen, bath and toilet area
and storage room

The 9thMalaysia Plan Housing Targets, 2006-2010

The 8thMalaysia Plan Housing Achievements

Key Highlights of Private Sector’s Achievements:

• Completed 243.2% of low cost targets. Total completed were

97,294 against 40,000 targets
• Similarly, medium cost targets of 100,700 were also over
achieved at 346.9%
• High cost achievement surpasses the targets of 125,000 at
261.9%
• The only under achievement was for low medium cost houses, at
65%

Examples of Current Costs of Providing Low Cost Housing

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

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

This is our site,

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 selected
from 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 unit
owners 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 no
control for subsequent sub-sale transactions.
• Vandalism, non-payment of management fees (applicable for
high rise houses), poor building maintenance
• High Occurrence of Crime
• Insufficient funds and manpower for crime prevention.
LOW COST HOUSING –THE WAY FORWARD

Government should take over provision of low cost public housing via
its agencies, i.e. Syarikat Perumahan Negara Berhad (SPNB) and
SEDCs

As an immediate measure, waive low cost requirement imposed on

private sector, so that companies who could undertake new launches
would find it feasible to do so, especially in these difficult times.

Meanwhile, review pricing to reflect current cost, e.g. review price from
current RM42, 000 to RM60, 000 and to RM75, 000 in the Klang Valley
to 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 emphasize
on quality, not quantity and a good maintenance culture.
• Where such quality low-cost are built sub-sales must be
controlled, 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 affordable
housing. Industry players include developers, bankers,
contractors, consultants, building materials suppliers etc.
GOVERMENT’S 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 affordable

homes under the People's Housing Programme (PPR) will be completed
this year and another batch of 1,914 will be ready next year, according
to the 2009/2010 Economic Report released Friday.

They are part of the government's targeted 73,251 units of such

houses to be built under the Ninth Malaysia Plan (2006-2010).

"Providing adequate, quality and affordable housing, especially for the

lower 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 of
RM200 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 Najib

Tun Razak Friday announced the government's commitment to achieve
the target of zero hardcore poverty next year.

Tabling the 2010 Budget in the Dewan Rakyat, he said the efforts
included assisting the poor and vulnerable groups, eradicating urban
poverty and increasing home ownership.

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

"The urbanisation rate is increasing rapidly with 63 per cent of the

population residing in urban areas. The poverty rate in urban areas
continues to increase due to high cost of living, low income and
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 and
expanded to include urban poverty eradication nationwide, including
those with monthly income below RM3,000, and that the ministry
would be known as the Ministry of Federal Territories and Urban
Wellbeing.

Najib said priority would be given to the low- and middle-income

groups to own or rent houses provided by the government.

"On Oct 10, 2009, I announced that more than 44,000 low-cost houses
will 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) by
end-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 projects

involving low- and medium-cost houses, he added.

As such, he said, the government would consider extending

appropriate financial assistance to rehabilitate low- and medium-cost
houses based on the existing project list, for which an allocation of
RM200 million would be provided under the Ministry of Housing and
Local Government.

Najib also said that the government would launch a scheme that
enabled Employees Provident Fund (EPF) contributors to utilise current
and 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 the
purchasing power of EPF contributors and is limited to the purchase of
one 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 programmes

to assist the poor and vulnerable groups, adding that efforts would be
taken to reduce the poverty rate from 3.6 per cent in 2007 to 2.8 per
cent in 2010.

-- BERNAMA