Wednesday, November 16, 2011


Housing provision in all countries are very crucial in order to ensure stability of socio-economic and to promote national development. Under the Seventh Malaysia Plan (1996-2000) and Eight Malaysia Plan (2001-2005), Malaysian government are committed to provide adequate, affordable and quality housing for all Malaysian, focused on the low income group. This is in line with Istanbul Declaration on Human Settlement and Habitat Agenda (1996) to ensure adequate shelter for all. Therefore, the Malaysian government under its 5 years National Plan has introduced the low, medium, and high cost housing categories.
Under the Seventh Malaysian Plan (1996-2000) the government for the first time introduced the Low Medium Cost Housing category.Previously it was classified under medium cost housing but due to its increasing demand in this category, the government take action to introduced the so called new housing category that is Low Medium Housing category. the purpose is to ensure that the middle low income group with salary ranging from RM 1,5001-RM2,500 per month able to own a house. However, provision of low medium cost housing ranging from RM42,001-RM60,000 per unit projected under Seventh Malaysia Plan is very disappointed with only 72,582 units completed from 350,000 units targeted nationwide.

Since independent, the provision of low cost housing has become priority of the government in the Five Years National Plans. Government agencies are directly responsible in providing housing for the poor in urban areas through establishment of the State Economic Development Corporations and various urban development agencies. The price for low cost housing was fixed at RM25,000 per unit for people with household income of less than RM750 per month since 1982.
In order to ensure the private sector to construct low cost housing, government through the local authority also impose 30% quota provision of low cost housing in every residential development to ensure that these houses are secured by targeted group, the government also imposed an open registration system. There are no specific quota or registered purchaser required for other housing categories.

Flats and single storey terrace houses always referred to low cost housing.
Source : Yahoo

At the federal level, National Housing Policy is very important for long term housing planning. This is due to government's objective to become developed country by the year 2020. By that, the government can control and monitor the construction of low medium cost housing altogether with the other aspects.
To ensure the housing developers to build more low medium cost housing, the incentive should be given to low cost housing such as tax relief, lower land premium, faster approval, etc. The government should also set the appropriate quota of low medium cost housing to be built by housing developers.

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