iii) RM750 Household Income
Buyers of the low cost units must have a combined household income not
exceeding RM 750 per month. About 60% or urban households in Malaysia in
1980 fell within this income group (ie income less than or equal to RM750). The
income level in Malaysia has however risen by about 3.1% per annum between
1970 and 1990 and the current labour shortage in all sectors of the economy
has ensured that wages continue to enjoy an upward trend.
iv) Minimum Design Standards
The policy specifies that each low cost house must have a minimum built-up
area of 550 to 600 sq ft comprising 2 bedrooms, a living room, a kitchen and a
bathroom. The houses may be of any type including flats, terrace or even
detached houses. Generally, developers have to opt for high density
developments (such as flats or cluster houses) in order to achieve economist of
scale or to reduce the amount of land used for the low cost component.