2.1 Housing Policy before 1970
There are 2 housing policies before 1970 (before independence and the post-independence):
2.1.1 The Colonial Housing Policy (1948-1960)
Before independence, the concept of public housing was associated with the
provision of institutional quarters. The only programme providing housing for the Malaysian
people was the resettlement of Chinese (New Villages) during emergency period. It was a
part of British’s administration strategy to weaken the support for communist insurgency.
Hard core of the housing problems during this time such as houses which are
inadequate both with regard to accommodation and conveniences; and houses which are
suitable in themselves but have become a danger to public health due to gross overcrowding.
Hence, a committee had been setup in December 1946 to consider and report the housing
problem in Malaya. Two types of housing which needed attention:
Squatter type dwelling (hovels)
Overcrowded cubicles
The committee's report recommended the establishment of a Housing Trust with
powers to lease or purchase and hold land and buildings, to build houses, shops and shophouses,
and to sell, lease or let land and buildings. The Housing Trust is empowered to
acquire land in accordance with existing law, and to borrow and raise capital or make loans.
It also given the power to require the owners of vacant land in appropriate cases to develop
them, or in default to pay special 'development rate', which would be accrued to the Trust.
2.1.2 Policy On Home-Owning Democracy (1961-1970)
The post-Independence concept of public housing advanced from merely
providing housing for government officials to the concept of home-owning democracy
Second Five-Year Plan (1961-1965) was concerned with the provision of cheap housing
as a basic social need. Rural public low-cost housing programs implemented by the
Housing Trust were targeted specifically towards rural poor households with incomes of
below RM300 a month.
The First Malaysia Plan (1966-70) stressed the role of the government in
providing:
low-cost housing as 'one of the major efforts of the government to promote the
welfare of the lower income groups
the lower income groups were given special attention because 'the incomes of
this economically weak section of the community are too low to encourage
private developers to enter this field of housing development'.
the services of the Housing Trust were provided to state governments on
generous terms for undertaking low-cost housing projects.
the need to tackle the squatter problem in larger urban areas. New construction
techniques intended to speed up construction and to lower costs compared with
the conventional method.
2.2 Housing Policy 1976-1990
Since in the early 1970s, Malaysia has undergone rapid urbanisation and
industrialisation. Federal government paid more attention to the housing needs of the
lower income groups.
The New Economic Policy (NEP) was introduced in 1971, which is housing
programmes undertaken by both public and private sectors. NEP initiated to foster
nationality unity and union-building. The housing industry was envisaged to play a
leading role in stimulating economic growth.
The NEP focused on the development of housing estates in new areas. This was
essential in achieving economic balance between urban and rural areas. In the various
national development plans (3rd Malaysia Plan: 1976-80; 4th Malaysia Plan: 1981-85 and 5th Malaysia Plan: 1986-90), this strategy was further expanded to include the following
elements:
The spreading out of urban development rather than perpetuating the polarisation
of such development in specific regions. New housing estates and industrial
centres were set up in the less developed states to create a more balanced
distribution of economic activities in underdeveloped areas;
The integration of the development of these centres with their hinterlands to
bring about greater urbanisation and industrialisation in the rural areas;
The strengthening of linkages between the various corridors of development, new
housing estates, industrial centres and new townships through the development of
a denser system of urban centres and specialisations.
2.3 Housing policies during 1970s to 1990:
There are several housing policies during 1970s to 1990, which are as follows :
2.3.1 Housing and The New Economic Policy
The second programme of the New Economic Policy (NEP) was
necessary because prevailing socio-economic imbalances persisted in all
dimensions including income, poverty, employment, housing and ownership of
wealth and assets.
The wide differences in participation of the various ethnic groups in the
national economy were related to differences in control over the factors of
production.
The NEP was conceived to prevent further perpetuation of this imbalance
with specific restructuring objectives: Increasing the share of analysis in employment in the modern sector and
within this sector, improving the income of Malays by upgrading their
skills;.
Increasing the Malay share in corporate ownership, including housing
and property;
Increasing the number of Malay businessmen or entrepreneurs and the
degree of Malay managerial control.
The federal government introduced a quota system in housing
development to ensure that at least 30 percent of houses to be built were allocated
for Bumiputera.
The public development expenditure has been used to continue to reduce
inter-ethnic economic differences and to ensure the Bumiputera housing
ownership quota is met. Some public enterprises were already in existence before
the NEP, such as:
Opening up of new land and settlement schemes by the Federal Land
Development Authority (Felda);
Provision of housing finance by Bank Bumiputera;
Promotion of Malay participation in commerce by Majlis Amanah Rakyat
(Mara, Council off Trust for Indigenous People) and in industry by
Malaysian Industrial Development Authority (Mida); and (MARA).
New agencies were therefore necessary. New corporations set up
following the implementation of the NEP include :
Permodalan Nasional Berhad (Pernas), Urban Development Authority
(UDA) and State Economic Development Corporations (SEDCs) with
specific tasks of venturing into commerce and industry either singly or
through joint ventures with other private or other public agencies.
2.1 Housing Policy before 1970
There are 2 housing policies before 1970 (before independence and the post-independence):
2.1.1 The Colonial Housing Policy (1948-1960)
Before independence, the concept of public housing was associated with the
provision of institutional quarters. The only programme providing housing for the Malaysian
people was the resettlement of Chinese (New Villages) during emergency period. It was a
part of British’s administration strategy to weaken the support for communist insurgency.
Hard core of the housing problems during this time such as houses which are
inadequate both with regard to accommodation and conveniences; and houses which are
suitable in themselves but have become a danger to public health due to gross overcrowding.
Hence, a committee had been setup in December 1946 to consider and report the housing
problem in Malaya. Two types of housing which needed attention:
Squatter type dwelling (hovels)
Overcrowded cubicles
The committee's report recommended the establishment of a Housing Trust with
powers to lease or purchase and hold land and buildings, to build houses, shops and shophouses,
and to sell, lease or let land and buildings. The Housing Trust is empowered to
acquire land in accordance with existing law, and to borrow and raise capital or make loans.
It also given the power to require the owners of vacant land in appropriate cases to develop
them, or in default to pay special 'development rate', which would be accrued to the Trust.
2.1.2 Policy On Home-Owning Democracy (1961-1970)
The post-Independence concept of public housing advanced from merely
providing housing for government officials to the concept of home-owning democracy
Second Five-Year Plan (1961-1965) was concerned with the provision of cheap housing
as a basic social need. Rural public low-cost housing programs implemented by the
Housing Trust were targeted specifically towards rural poor households with incomes of
below RM300 a month.
The First Malaysia Plan (1966-70) stressed the role of the government in
providing:
low-cost housing as 'one of the major efforts of the government to promote the
welfare of the lower income groups
the lower income groups were given special attention because 'the incomes of
this economically weak section of the community are too low to encourage
private developers to enter this field of housing development'.
the services of the Housing Trust were provided to state governments on
generous terms for undertaking low-cost housing projects.
the need to tackle the squatter problem in larger urban areas. New construction
techniques intended to speed up construction and to lower costs compared with
the conventional method.
2.2 Housing Policy 1976-1990
Since in the early 1970s, Malaysia has undergone rapid urbanisation and
industrialisation. Federal government paid more attention to the housing needs of the
lower income groups.
The New Economic Policy (NEP) was introduced in 1971, which is housing
programmes undertaken by both public and private sectors. NEP initiated to foster
nationality unity and union-building. The housing industry was envisaged to play a
leading role in stimulating economic growth.
The NEP focused on the development of housing estates in new areas. This was
essential in achieving economic balance between urban and rural areas. In the various
national development plans (3rd Malaysia Plan: 1976-80; 4th Malaysia Plan: 1981-85 and 5th Malaysia Plan: 1986-90), this strategy was further expanded to include the following
elements:
The spreading out of urban development rather than perpetuating the polarisation
of such development in specific regions. New housing estates and industrial
centres were set up in the less developed states to create a more balanced
distribution of economic activities in underdeveloped areas;
The integration of the development of these centres with their hinterlands to
bring about greater urbanisation and industrialisation in the rural areas;
The strengthening of linkages between the various corridors of development, new
housing estates, industrial centres and new townships through the development of
a denser system of urban centres and specialisations.
2.3 Housing policies during 1970s to 1990:
There are several housing policies during 1970s to 1990, which are as follows :
2.3.1 Housing and The New Economic Policy
The second programme of the New Economic Policy (NEP) was
necessary because prevailing socio-economic imbalances persisted in all
dimensions including income, poverty, employment, housing and ownership of
wealth and assets.
The wide differences in participation of the various ethnic groups in the
national economy were related to differences in control over the factors of
production.
The NEP was conceived to prevent further perpetuation of this imbalance
with specific restructuring objectives: Increasing the share of analysis in employment in the modern sector and
within this sector, improving the income of Malays by upgrading their
skills;.
Increasing the Malay share in corporate ownership, including housing
and property;
Increasing the number of Malay businessmen or entrepreneurs and the
degree of Malay managerial control.
The federal government introduced a quota system in housing
development to ensure that at least 30 percent of houses to be built were allocated
for Bumiputera.
The public development expenditure has been used to continue to reduce
inter-ethnic economic differences and to ensure the Bumiputera housing
ownership quota is met. Some public enterprises were already in existence before
the NEP, such as:
Opening up of new land and settlement schemes by the Federal Land
Development Authority (Felda);
Provision of housing finance by Bank Bumiputera;
Promotion of Malay participation in commerce by Majlis Amanah Rakyat
(Mara, Council off Trust for Indigenous People) and in industry by
Malaysian Industrial Development Authority (Mida); and (MARA).
New agencies were therefore necessary. New corporations set up
following the implementation of the NEP include :
Permodalan Nasional Berhad (Pernas), Urban Development Authority
(UDA) and State Economic Development Corporations (SEDCs) with
specific tasks of venturing into commerce and industry either singly or
through joint ventures with other private or other public agencies.
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