The period from 1986 onward saw a policy shift from public to private sector
domination, related to a shift in macro economic policy. The new policy emphasised a
private sector led economy59 and low-cost housing was a policy instrument to combat
economic recession. The assumption was that investment in low-cost housing (a
Special Low-cost Housing Programme - SLCHP) could generate economic growth and
provide employment. The SLCHP in 1986-88 had a construction target of 240,000
private sector units. The SLCHP with capital investment estimated as RM$2 billion a
year, financing a production target of 80,000 units a year, was expected to generate 2
percent economic growth. The SLCHP was an economic instrument but also reflected
government effort to solve low-cost housing needs through markets. Private sector
producers were to function as the major suppliers, with government agencies providing
support; for example in speedy plan approval, new standard plans with higher housing
density, and funding.
The period from 1986 onward saw a policy shift from public to private sector
domination, related to a shift in macro economic policy. The new policy emphasised a
private sector led economy59 and low-cost housing was a policy instrument to combat
economic recession. The assumption was that investment in low-cost housing (a
Special Low-cost Housing Programme - SLCHP) could generate economic growth and
provide employment. The SLCHP in 1986-88 had a construction target of 240,000
private sector units. The SLCHP with capital investment estimated as RM$2 billion a
year, financing a production target of 80,000 units a year, was expected to generate 2
percent economic growth. The SLCHP was an economic instrument but also reflected
government effort to solve low-cost housing needs through markets. Private sector
producers were to function as the major suppliers, with government agencies providing
support; for example in speedy plan approval, new standard plans with higher housing
density, and funding.
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