The government have been focused more on low medium cost housing during the Seventh Malaysia Planwith total 350,000 units or 44% from the total of 800,000 units planned.
Table 1: Planned and Completed Housing Units According to House Price Category During Sixth and Seventh Malaysia Plan
| Sixth Malaysia Plan (1991-1995) | Seventh Malaysia Plan (1996-2000) | ||||
Planned | Compeleted | % | Planned | Completed | % | |
PUBLIC SECTOR Hardcore Poor Housing Low Cost Low Medium Cost Medium Cost High Cost | - 126,800 - 44,600 2,600 | - 46,497 - 35,195 2,850 | - - - 78.9 109.6 | 35,000 60,000 110,000 20,000 5,000 | 17,229 60,999 18,782 21,748 2,866 | 42.9 101.7 17.1 108.7 57.3 |
Sub total | 174,000 | 84,542 | 48.6 | 230,000 | 121,624 | 52.9 |
PRIVATE SECTOR Low Cost Low Medium Cost Medium Cost High Cost | 217,000 - 155,900 26,100 | 214,889 - 247,241 100,778 | 99.0 - 158.6 386.2 | 140,000 240,000 110,000 80,000 | 129,598 53,800 206,208 348,250 | 92.6 22.4 187.5 435.3 |
Sub total Total | 399,000 573,000 | 562,918 647,460 | 141.1 113.0 | 570,000 800,000 | 737,856 859,480 | 129.4 107.4 |
Source: Eight Malaysia Plan 2001
Although the number of units planned for low medium cost houses are the highest compared to other categories, but the achievement relatively low in both sectors. During the Seventh Malaysia Plan the construction of medium and high cost housing by private sector has achieved 187% and 435% respectively of the targeted units. This situation created the oversupply of housing stock for both categories during 1997-2000. The Asian economic crisis worsened the properties scenario in Malaysia with many unsold properties including medium and high cost housing.
The construction of low medium cost housing according to the states in Malaysia also shown the imbalance of distribution with several states not even building a single low medium cost houses until 1999 including the Federal Territory of Kuala Lumpur. From the study, in several states the construction of low medium cost housing has only started after the government announced the new ceiling price structure for low cost housing to be at RM42,000 per unit. Other factor including the economic crisis which require the housing developers to concentrate more focus on affordable housing due to the oversupply of medium and high cost housing