8 Analyses the Malaysian LCH
Study on Malaysia’s plans and regulations indicate that Malaysia pays special attention to housing requirements. There are 12 elements identified as Malaysia special attentions in different plans and agendas which are related to Malaysian future targets: median income group beside the low income group, quality of life, development projects, houses for government employees, focus on building for disadvantaged and the poor in urban and rural areas, more systematic and well-organized urban services programs, emphasis on sustainable development, promote greater community participation, physical and social infrastructure, soft housing loan for target group, female-headed household as a target group and attention to mixed development and mixed income housing. The PBH process chart confirms that the LCH construction in Malaysia is not suffering from plenty of steps. Also the low quality of constructed houses as LCH is not because of low quality developers. What is visible around the country is almost the same quality for LCH which constructed by different developers. Further study and interviews with developers confirms the government pressures for making higher quality LCH and selling in low fixed prices. This low fixed price is the real barrier for developers for involving in LCH and has resulted more luxury and medium income houses against low income housing. Housing in Malaysia is a matter that concerns both the federal and state governments. First, federal entities set housing policies and strategies, as well as housing targets, define licensing and enforcement regulations and guide financial institutions in providing bridge and end-financing. Second, state governments and local authorities play a primary role in physical planning and housing investments. Local authorities require all housing developments to have their plans and utility connections approved. As stated in the Seventh Malaysia Plan (7MP) [15], the main objective of housing policy for the plan period 1996–2000 was to provide adequate, decent, and affordable housing with basic amenities. Like the previous national development plans, this plan emphasized the provision of housing for the poor and low-income groups. As Cheng (1999) believes, government strategies and programs are aimed at delivering sufficient number of housing units that all sectors of society can afford [24]. A total of 800,000 housing units were planned for construction under 7MP. Of this number, the public sector was to deliver 230,000 housing units (29%) and the private sector, 570,000 (71%). The private sector was expected to serve the housing needs of all levels of society. The public sector, on the other hand, concentrated on the delivery of housing units to the lower-income groups. Playing an “enabling” role, it provides incentives and facilities for housing development.
8 Analyses the Malaysian LCH
Study on Malaysia’s plans and regulations indicate that Malaysia pays special attention to housing requirements. There are 12 elements identified as Malaysia special attentions in different plans and agendas which are related to Malaysian future targets: median income group beside the low income group, quality of life, development projects, houses for government employees, focus on building for disadvantaged and the poor in urban and rural areas, more systematic and well-organized urban services programs, emphasis on sustainable development, promote greater community participation, physical and social infrastructure, soft housing loan for target group, female-headed household as a target group and attention to mixed development and mixed income housing. The PBH process chart confirms that the LCH construction in Malaysia is not suffering from plenty of steps. Also the low quality of constructed houses as LCH is not because of low quality developers. What is visible around the country is almost the same quality for LCH which constructed by different developers. Further study and interviews with developers confirms the government pressures for making higher quality LCH and selling in low fixed prices. This low fixed price is the real barrier for developers for involving in LCH and has resulted more luxury and medium income houses against low income housing. Housing in Malaysia is a matter that concerns both the federal and state governments. First, federal entities set housing policies and strategies, as well as housing targets, define licensing and enforcement regulations and guide financial institutions in providing bridge and end-financing. Second, state governments and local authorities play a primary role in physical planning and housing investments. Local authorities require all housing developments to have their plans and utility connections approved. As stated in the Seventh Malaysia Plan (7MP) [15], the main objective of housing policy for the plan period 1996–2000 was to provide adequate, decent, and affordable housing with basic amenities. Like the previous national development plans, this plan emphasized the provision of housing for the poor and low-income groups. As Cheng (1999) believes, government strategies and programs are aimed at delivering sufficient number of housing units that all sectors of society can afford [24]. A total of 800,000 housing units were planned for construction under 7MP. Of this number, the public sector was to deliver 230,000 housing units (29%) and the private sector, 570,000 (71%). The private sector was expected to serve the housing needs of all levels of society. The public sector, on the other hand, concentrated on the delivery of housing units to the lower-income groups. Playing an “enabling” role, it provides incentives and facilities for housing development.
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