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The Government recognizes that the housing sector is a key driver of the Malaysian economy.

Prior to the global financial crisis the Government invested RM330 million in the 2009 Budget, allocated to Government agencies to construct the Public Housing Program.

In the current economic climate, more needs to be done to ensure that housing remains both a buoyant part of the economy and affordable for Malaysians.

That is why the Government dedicated RM1.2 Billion from the RM7 Billion fiscal stimulus package to add further investment in the housing sector.

These programs aim to enhance affordability by making special funds accessible to a greater cross section of the community who have the capacity to service a loan but are not able to obtain loans due to an inability to show proof of steady earnings.

These public housing programs expected provide further opportunities for the almost 140 trades which are directly or indirectly connected to the property and construction industries.

In his 2012 budget speech, Prime Minister, Dato Seri Mohd. Najib bin Tun abdul Razak announced the Government intention of expanding the My First Home Scheme.

This scheme was introduced in March 2011 to meet the demand for houses from those earning below RM3,000.

The Government proposes to increase the limit of house prices from a maximum of RM220,000 to RM400,000. This improved scheme will be available to house buyers through joint loans of husband and wife beginning January 2012.

The Government also established the 1Malaysia People’s Housing (PR1MA) as the sole agency to develop and maintain affordable and quality houses, specifically for middle-income group.

PR1MA will play a main role in ensuring that the distribution of the housing units will be transparent and fair through an open balloting system. In 2011, 1,880 houses will be built in Putrajaya and Bandar Tun Razak.

PR1MA will be the developer for projects on land owned by the Government. In this regard, the Government intends to develop several plots of Government-owned land around Sungai Besi and Sungai Buloh.

The Government will also identify areas in the vicinity of MRT, LRT and other public transport system to be developed by PR1MA for housing projects.

In addition, PR1MA also welcomes the cooperation with private sector to develop similar projects.

In this respect, several private developers responded to the Government’s call to provide affordable and quality housing.

In 2012, a total of 7,700 houses will be built in Cyberjaya, Putra Heights, Seremban, Damansara and Bukit Raja.

House prices under PR1MA scheme are lower than market prices as the land and facilitation funds are provided to developers.

The Government will also provide 100% stamp duty exemption on loan instruments for the purchase of houses.

To protect buyers from risks of projects being delayed or abandoned, the Government will encourage the construction of more houses using the build then sell concept.

For this purpose, Islamic banks have agreed to provide shariah-compliant financing and undertake construction risks.

Instalments only commence after the house is completed. This scheme will be implemented for houses costing RM600,000 and below.

As for Program Perumahan Rakyat (PPR) targeted for the lower income group, Government will build 75,000 units of affordable houses nationwide under the 10MP.

In 2012, RM443 million is allocated for the construction of 8,000 units for sale and 7,000 units to be rented.

While under Rumah Mesra Rakyat (RMR) programme, those with land but without a house or live in dilapidated houses are eligible for financing to build a house.

RMR which is managed by Syarikat Perumahan Negara Berhad (SPNB), will be continued to help the low-income group to own decent houses.

SPNB will build 10,000 units in 2012. For this, the Government will allocate RM200million. Each house costing RM65,000 will be sold for RM45,000 and the Government will subsidise RM20,000.

The Government successfully rehabilitated and obtained the Certificate of Fitness (CF) for 82 projects involving more than 15,000 units through the Abandoned Housing Rehabilitation Programme.

Government agree to allocate a sum of RM63 million in 2012 to rehabilitate 1,270 abandoned houses a part from the RM40 million allocation for restoration and maintenance of public and private low-cost housing.

In addition, to complement government efforts, GLCs and the private sector will be encouraged to provide houses through their corporate social responsibility (CSR) programmes.

The private sector are encouraged to develop more affordable medium-cost housing. In addition, efforts will be undertaken to incorporate facilities that will encourage greater community development and better access for older persons and persons with disabilities.

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Abstract : Public Housing Programs Expected Provide Further Opportunities

The Government recognizes that the housing sector is a key driver of the Malaysian economy.

The Government successfully rehabilitated and obtained the Certificate of Fitness (CF) for 82 projects involving more than 15,000 units through the Abandoned Housing Rehabilitation Programme.

Government agree to allocate a sum of RM63 million in 2012 to rehabilitate 1,270 abandoned houses a part from the RM40 million allocation for restoration and maintenance of public and private low-cost housing.

In addition, to complement government efforts, GLCs and the private sector will be encouraged to provide houses through their corporate social responsibility (CSR) programmes.

-SNASH-

(this article published in 1BINA.my)