Housing
18.04 During the Plan period, a total of 800,000 units of houses was planned
for construction to meet housing needs. A total of 859,480 units or 107.4 per
cent of the Plan target was completed, as shown in Table 18-1. The private sector,
which was targeted to build 570,000 units, completed 737,856 units or 129.4 per
cent of the target. However, the distribution based on the type of houses was
not in line with the target set, whereby the private sector mainly built mediumand
high-cost houses. This was reflected by the completion of a total of 554,458
units of medium- and high-cost houses or 291.8 per cent of the Plan target.
18.05 In the low-cost housing category, the performance of both the public
and private sectors was encouraging with a total of 190,597 units completed or
95.3 per cent of the target. Of this, 129,598 units were constructed by the private
sector with the balance by the public sector including State Governments and
State Economic Development Corporations (SEDCs). In an effort to increase the
quality of low-cost houses, new designs with a floor area of 60 square metres
incorporating three bedrooms as well as washing and drying areas, especially
in high-rise buildings, were introduced. In the low-medium cost category, a total
of 72,582 units or 20.7 per cent of the target set was achieved. The low performance
was due to cautious investment decisions by housing developers.
18.06 Several measures were undertaken by the Government to accelerate the
implementation of housing programmes, particularly low-cost housing. These
included the extension of the Low-Cost Housing Revolving Fund (LCHRF) to
the private sector to implement new projects, establishment of Syarikat Perumahan
Negara Malaysia Berhad (SPNB) in 1997 and the introduction of a new pricing
scheme. By the end of the Plan period, the construction of 3,294 units of lowcost
houses, 360 units of low medium-cost, 1,299 units of medium-cost and 542
units of high-cost was financed under the LCHRF. SPNB was established with
a capital of RM2.0 billion to increase the supply of houses costing RM150,000
and below, through the provision of bridging finance to housing developers.
Since its establishment, SPNB approved RM732.8 million in bridging loans for
the construction of 50,725 units of houses, ranging from low-cost to medium
cost houses. Under the four-tier pricing scheme introduced in June 1998, the price
of low-cost houses ranged from RM25,000 to RM42,000 depending on the location
and type of houses. This was implemented as an incentive to housing developers
to participate more actively in providing low-cost houses for the public.
18.07 A special low-cost housing programme, namely, Program Perumahan
Rakyat Bersepadu (PPRB) was launched by the Government in December 1998,
with the objective of resettling squatters in urban areas, particularly in the
Federal Territory of Kuala Lumpur and other major towns. Of the 35,000 units
which were planned to be built in the Federal Territory of Kuala Lumpur, a total
of 34,148 units was under various stages of implementation. In addition, a total
of 17,630 units was identified for implementation in other major towns where
squatters were prevalent. Basic facilities such as electricity and water supply
continued to be provided for existing squatter settlements pending their relocation
to the new housing schemes.
18.08 The number of medium- and high-cost houses built by the private sector
far exceeded the Plan target. The medium-cost category achieved 187.5 per cent
and the high-cost category 435.3 per cent of their respective targets. Consequently,
at the end of June 1999, the overall number of unsold residential properties was
estimated at 93,600 units. To help reduce the stock overhang, the Government
and the Real Estate and Housing Developer’s Association Malaysia (REHDA)
launched several home ownership campaigns. The first Home Ownership Campaign
was launched on 12 December 1998, for a duration of one month and the second
Home Ownership Campaign from 29 October to 7 December 1999. Incentives
offered during the campaigns included exemption of stamp duties as well as a
minimum price discount of 5.0 per cent for properties costing RM100,000 or
less, and 10 per cent for properties costing above RM100,000. Financial institutions
also offered incentives such as a higher margin of finance up to 95 per cent,
waiver of processing fees and increased loan tenure up to 30 years. Legal fees
were also lowered for sales and purchase as well as loan agreements. As at 30
June 2000, the number of unsold residential properties was reduced to an estimated
45,500 units, including 9,700 units of condominium and apartments.
18.09 Housing Development in Rural Areas. As part of the efforts to provide
better housing and living conditions to the rural people, several housing programmes
continued to be implemented in the rural areas, namely, the Site and Services,
Traditional Village Regrouping as well as Rehabilitation of Dilapidated Houses
Programmes. Of the 12,000 units targeted for implementation under the Site and
Services Programmes, only 3,603 units were completed due to land issue and highcost incurred by the state governments. Under the Traditional Village Regrouping
Programme, a total of 39 villages was regrouped, benefiting 3,615 families. In
addition, under the Rehabilitation of Dilapidated Houses Programme, a total of
13,232 units was constructed, benefiting about 47,000 people.
18.10 Housing for Public Sector Employees. During the Seventh Plan period,
a total of 12,015 housing units was constructed for public sector employees in
essential services such as the armed forces, customs, fire and rescue services,
immigration and police. Houses were also provided to other public sector employees
such as teachers and medical personnel serving in rural and remote areas where
suitable accommodation was not available, and for those serving in Putrajaya.
18.11 Housing For Estate and Industrial Workers. During the Plan period, a
total of 21,561 houses was built in various estates throughout the country. In
addition, 74 per cent of all houses were provided with 24-hour electricity and
43 per cent with piped water supply. A total of 259 kindergartens and 69 community
halls was also built to improve the welfare of estate workers and their families.
Under the voluntary house ownership scheme, a total of 8,171 units was sold.
With regard to industrial workers, the employers in the manufacturing sector
were also encouraged to provide accommodation and recreational facilities for
their workers.
18.12 Housing Technology, Research and Development. Greater emphasis was
also given to research and development (R&D) in the housing sector during the
Seventh Plan period. R&D activities related to production of cheaper and more
efficient building materials, better construction techniques and life-costing estimation
of multi-storey housing were undertaken by the universities and the private
sector. As a measure to overcome the problem of construction defects as well
as to protect house buyers, the Quality Assessment System of Construction was
introduced. In addition, standard plans for the low-cost housing were also introduced
to reduce cost as well as to provide more comfort to the occupants.
Housing
18.04 During the Plan period, a total of 800,000 units of houses was planned
for construction to meet housing needs. A total of 859,480 units or 107.4 per
cent of the Plan target was completed, as shown in Table 18-1. The private sector,
which was targeted to build 570,000 units, completed 737,856 units or 129.4 per
cent of the target. However, the distribution based on the type of houses was
not in line with the target set, whereby the private sector mainly built mediumand
high-cost houses. This was reflected by the completion of a total of 554,458
units of medium- and high-cost houses or 291.8 per cent of the Plan target.
18.05 In the low-cost housing category, the performance of both the public
and private sectors was encouraging with a total of 190,597 units completed or
95.3 per cent of the target. Of this, 129,598 units were constructed by the private
sector with the balance by the public sector including State Governments and
State Economic Development Corporations (SEDCs). In an effort to increase the
quality of low-cost houses, new designs with a floor area of 60 square metres
incorporating three bedrooms as well as washing and drying areas, especially
in high-rise buildings, were introduced. In the low-medium cost category, a total
of 72,582 units or 20.7 per cent of the target set was achieved. The low performance
was due to cautious investment decisions by housing developers.
18.06 Several measures were undertaken by the Government to accelerate the
implementation of housing programmes, particularly low-cost housing. These
included the extension of the Low-Cost Housing Revolving Fund (LCHRF) to
the private sector to implement new projects, establishment of Syarikat Perumahan
Negara Malaysia Berhad (SPNB) in 1997 and the introduction of a new pricing
scheme. By the end of the Plan period, the construction of 3,294 units of lowcost
houses, 360 units of low medium-cost, 1,299 units of medium-cost and 542
units of high-cost was financed under the LCHRF. SPNB was established with
a capital of RM2.0 billion to increase the supply of houses costing RM150,000
and below, through the provision of bridging finance to housing developers.
Since its establishment, SPNB approved RM732.8 million in bridging loans for
the construction of 50,725 units of houses, ranging from low-cost to medium
cost houses. Under the four-tier pricing scheme introduced in June 1998, the price
of low-cost houses ranged from RM25,000 to RM42,000 depending on the location
and type of houses. This was implemented as an incentive to housing developers
to participate more actively in providing low-cost houses for the public.
18.07 A special low-cost housing programme, namely, Program Perumahan
Rakyat Bersepadu (PPRB) was launched by the Government in December 1998,
with the objective of resettling squatters in urban areas, particularly in the
Federal Territory of Kuala Lumpur and other major towns. Of the 35,000 units
which were planned to be built in the Federal Territory of Kuala Lumpur, a total
of 34,148 units was under various stages of implementation. In addition, a total
of 17,630 units was identified for implementation in other major towns where
squatters were prevalent. Basic facilities such as electricity and water supply
continued to be provided for existing squatter settlements pending their relocation
to the new housing schemes.
18.08 The number of medium- and high-cost houses built by the private sector
far exceeded the Plan target. The medium-cost category achieved 187.5 per cent
and the high-cost category 435.3 per cent of their respective targets. Consequently,
at the end of June 1999, the overall number of unsold residential properties was
estimated at 93,600 units. To help reduce the stock overhang, the Government
and the Real Estate and Housing Developer’s Association Malaysia (REHDA)
launched several home ownership campaigns. The first Home Ownership Campaign
was launched on 12 December 1998, for a duration of one month and the second
Home Ownership Campaign from 29 October to 7 December 1999. Incentives
offered during the campaigns included exemption of stamp duties as well as a
minimum price discount of 5.0 per cent for properties costing RM100,000 or
less, and 10 per cent for properties costing above RM100,000. Financial institutions
also offered incentives such as a higher margin of finance up to 95 per cent,
waiver of processing fees and increased loan tenure up to 30 years. Legal fees
were also lowered for sales and purchase as well as loan agreements. As at 30
June 2000, the number of unsold residential properties was reduced to an estimated
45,500 units, including 9,700 units of condominium and apartments.
18.09 Housing Development in Rural Areas. As part of the efforts to provide
better housing and living conditions to the rural people, several housing programmes
continued to be implemented in the rural areas, namely, the Site and Services,
Traditional Village Regrouping as well as Rehabilitation of Dilapidated Houses
Programmes. Of the 12,000 units targeted for implementation under the Site and
Services Programmes, only 3,603 units were completed due to land issue and highcost incurred by the state governments. Under the Traditional Village Regrouping
Programme, a total of 39 villages was regrouped, benefiting 3,615 families. In
addition, under the Rehabilitation of Dilapidated Houses Programme, a total of
13,232 units was constructed, benefiting about 47,000 people.
18.10 Housing for Public Sector Employees. During the Seventh Plan period,
a total of 12,015 housing units was constructed for public sector employees in
essential services such as the armed forces, customs, fire and rescue services,
immigration and police. Houses were also provided to other public sector employees
such as teachers and medical personnel serving in rural and remote areas where
suitable accommodation was not available, and for those serving in Putrajaya.
18.11 Housing For Estate and Industrial Workers. During the Plan period, a
total of 21,561 houses was built in various estates throughout the country. In
addition, 74 per cent of all houses were provided with 24-hour electricity and
43 per cent with piped water supply. A total of 259 kindergartens and 69 community
halls was also built to improve the welfare of estate workers and their families.
Under the voluntary house ownership scheme, a total of 8,171 units was sold.
With regard to industrial workers, the employers in the manufacturing sector
were also encouraged to provide accommodation and recreational facilities for
their workers.
18.12 Housing Technology, Research and Development. Greater emphasis was
also given to research and development (R&D) in the housing sector during the
Seventh Plan period. R&D activities related to production of cheaper and more
efficient building materials, better construction techniques and life-costing estimation
of multi-storey housing were undertaken by the universities and the private
sector. As a measure to overcome the problem of construction defects as well
as to protect house buyers, the Quality Assessment System of Construction was
introduced. In addition, standard plans for the low-cost housing were also introduced
to reduce cost as well as to provide more comfort to the occupants.
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Housing
18.04 During the Plan period, a total of 800,000 units of houses was planned
for construction to meet housing needs. A total of 859,480 units or 107.4 per
cent of the Plan target was completed, as shown in Table 18-1. The private sector,
which was targeted to build 570,000 units, completed 737,856 units or 129.4 per
cent of the target. However, the distribution based on the type of houses was
not in line with the target set, whereby the private sector mainly built mediumand
high-cost houses. This was reflected by the completion of a total of 554,458
units of medium- and high-cost houses or 291.8 per cent of the Plan target.
18.05 In the low-cost housing category, the performance of both the public
and private sectors was encouraging with a total of 190,597 units completed or
95.3 per cent of the target. Of this, 129,598 units were constructed by the private
sector with the balance by the public sector including State Governments and
State Economic Development Corporations (SEDCs). In an effort to increase the
quality of low-cost houses, new designs with a floor area of 60 square metres
incorporating three bedrooms as well as washing and drying areas, especially
in high-rise buildings, were introduced. In the low-medium cost category, a total
of 72,582 units or 20.7 per cent of the target set was achieved. The low performance
was due to cautious investment decisions by housing developers.
18.06 Several measures were undertaken by the Government to accelerate the
implementation of housing programmes, particularly low-cost housing. These
included the extension of the Low-Cost Housing Revolving Fund (LCHRF) to
the private sector to implement new projects, establishment of Syarikat Perumahan
Negara Malaysia Berhad (SPNB) in 1997 and the introduction of a new pricing
scheme. By the end of the Plan period, the construction of 3,294 units of lowcost
houses, 360 units of low medium-cost, 1,299 units of medium-cost and 542
units of high-cost was financed under the LCHRF. SPNB was established with
a capital of RM2.0 billion to increase the supply of houses costing RM150,000
and below, through the provision of bridging finance to housing developers.
Since its establishment, SPNB approved RM732.8 million in bridging loans for
the construction of 50,725 units of houses, ranging from low-cost to medium
cost houses. Under the four-tier pricing scheme introduced in June 1998, the price
of low-cost houses ranged from RM25,000 to RM42,000 depending on the location
and type of houses. This was implemented as an incentive to housing developers
to participate more actively in providing low-cost houses for the public.
18.07 A special low-cost housing programme, namely, Program Perumahan
Rakyat Bersepadu (PPRB) was launched by the Government in December 1998,
with the objective of resettling squatters in urban areas, particularly in the
Federal Territory of Kuala Lumpur and other major towns. Of the 35,000 units
which were planned to be built in the Federal Territory of Kuala Lumpur, a total
of 34,148 units was under various stages of implementation. In addition, a total
of 17,630 units was identified for implementation in other major towns where
squatters were prevalent. Basic facilities such as electricity and water supply
continued to be provided for existing squatter settlements pending their relocation
to the new housing schemes.
18.08 The number of medium- and high-cost houses built by the private sector
far exceeded the Plan target. The medium-cost category achieved 187.5 per cent
and the high-cost category 435.3 per cent of their respective targets. Consequently,
at the end of June 1999, the overall number of unsold residential properties was
estimated at 93,600 units. To help reduce the stock overhang, the Government
and the Real Estate and Housing Developer’s Association Malaysia (REHDA)
launched several home ownership campaigns. The first Home Ownership Campaign
was launched on 12 December 1998, for a duration of one month and the second
Home Ownership Campaign from 29 October to 7 December 1999. Incentives
offered during the campaigns included exemption of stamp duties as well as a
minimum price discount of 5.0 per cent for properties costing RM100,000 or
less, and 10 per cent for properties costing above RM100,000. Financial institutions
also offered incentives such as a higher margin of finance up to 95 per cent,
waiver of processing fees and increased loan tenure up to 30 years. Legal fees
were also lowered for sales and purchase as well as loan agreements. As at 30
June 2000, the number of unsold residential properties was reduced to an estimated
45,500 units, including 9,700 units of condominium and apartments.
18.09 Housing Development in Rural Areas. As part of the efforts to provide
better housing and living conditions to the rural people, several housing programmes
continued to be implemented in the rural areas, namely, the Site and Services,
Traditional Village Regrouping as well as Rehabilitation of Dilapidated Houses
Programmes. Of the 12,000 units targeted for implementation under the Site and
Services Programmes, only 3,603 units were completed due to land issue and highcost incurred by the state governments. Under the Traditional Village Regrouping
Programme, a total of 39 villages was regrouped, benefiting 3,615 families. In
addition, under the Rehabilitation of Dilapidated Houses Programme, a total of
13,232 units was constructed, benefiting about 47,000 people.
18.10 Housing for Public Sector Employees. During the Seventh Plan period,
a total of 12,015 housing units was constructed for public sector employees in
essential services such as the armed forces, customs, fire and rescue services,
immigration and police. Houses were also provided to other public sector employees
such as teachers and medical personnel serving in rural and remote areas where
suitable accommodation was not available, and for those serving in Putrajaya.
18.11 Housing For Estate and Industrial Workers. During the Plan period, a
total of 21,561 houses was built in various estates throughout the country. In
addition, 74 per cent of all houses were provided with 24-hour electricity and
43 per cent with piped water supply. A total of 259 kindergartens and 69 community
halls was also built to improve the welfare of estate workers and their families.
Under the voluntary house ownership scheme, a total of 8,171 units was sold.
With regard to industrial workers, the employers in the manufacturing sector
were also encouraged to provide accommodation and recreational facilities for
their workers.
18.12 Housing Technology, Research and Development. Greater emphasis was
also given to research and development (R&D) in the housing sector during the
Seventh Plan period. R&D activities related to production of cheaper and more
efficient building materials, better construction techniques and life-costing estimation
of multi-storey housing were undertaken by the universities and the private
sector. As a measure to overcome the problem of construction defects as well
as to protect house buyers, the Quality Assessment System of Construction was
introduced. In addition, standard plans for the low-cost housing were also introduced
to reduce cost as well as to provide more comfort to the occupants.
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