5 The State and Performance of Affordable Government Housing Initiatives in Malaysia
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Woei Chyuan Wong
Abstract
This chapter provides a comprehensive analysis of three affordable housing programmes in Malaysia, which include the affordable housing quota, the People’s Housing Program (PPR) and the 1Malaysia People’s Housing (PR1MA). The affordable housing quota is a mandatory affordable housing quota system imposed by the government on new private housing developments that exceed a certain size. PPR and PR1MA, on the other hand, are federal government housing programmes that aim to cater to the housing needs of the low- and middle-income groups. While the objective of these housing initiatives is laudable, they fall short of fulfilling the housing needs of the two groups. PR1MA, for instance, targeted to build 500,000 units of affordable houses by 2020 but could only manage to build 28,321 units as of September 2022. PPR, a social housing programme, was only able to cater to 6.2% of the low-income group’s housing needs. In addition, the transparency of providing affordable units under the quota system could be improved, as many private developers opted to pay levies in lieu of developing new ones due to cost issues. In this chapter, we dissect the evolution of these housing initiatives, issues, and challenges. We also offer our suggestions and recommendations to overcome these perennial issues in affordable housing provision in Malaysia.
Abstract
This chapter provides a comprehensive analysis of three affordable housing programmes in Malaysia, which include the affordable housing quota, the People’s Housing Program (PPR) and the 1Malaysia People’s Housing (PR1MA). The affordable housing quota is a mandatory affordable housing quota system imposed by the government on new private housing developments that exceed a certain size. PPR and PR1MA, on the other hand, are federal government housing programmes that aim to cater to the housing needs of the low- and middle-income groups. While the objective of these housing initiatives is laudable, they fall short of fulfilling the housing needs of the two groups. PR1MA, for instance, targeted to build 500,000 units of affordable houses by 2020 but could only manage to build 28,321 units as of September 2022. PPR, a social housing programme, was only able to cater to 6.2% of the low-income group’s housing needs. In addition, the transparency of providing affordable units under the quota system could be improved, as many private developers opted to pay levies in lieu of developing new ones due to cost issues. In this chapter, we dissect the evolution of these housing initiatives, issues, and challenges. We also offer our suggestions and recommendations to overcome these perennial issues in affordable housing provision in Malaysia.
Chapters in this book
- Frontmatter I
- Preface V
- Contents VII
- List of Figures IX
- List of Tables XI
- Acronyms XIII
- 1 Introduction 1
- 2 Measuring Home Affordability: Challenges and Directions Forward 5
- 3 Beyond the 30% Threshold: Introducing a Subjective Indicator for Measuring Housing Affordability in Malaysia 27
- 4 Housing (Un)affordability: Reality and Challenges from the Property Developers’ Perspective 57
- 5 The State and Performance of Affordable Government Housing Initiatives in Malaysia 77
- 6 Understanding Access and Accessibility: The State of Transportation Infrastructure and Affordable Housing in Kuala Lumpur and Putrajaya 97
- 7 Housing Affordability and Productivity: The Socioeconomic Case for Inclusive Urban Housing Policies in Malaysia 123
- 8 Conclusion and the Way Forward 143
- About the Authors 151
- Index 155
Chapters in this book
- Frontmatter I
- Preface V
- Contents VII
- List of Figures IX
- List of Tables XI
- Acronyms XIII
- 1 Introduction 1
- 2 Measuring Home Affordability: Challenges and Directions Forward 5
- 3 Beyond the 30% Threshold: Introducing a Subjective Indicator for Measuring Housing Affordability in Malaysia 27
- 4 Housing (Un)affordability: Reality and Challenges from the Property Developers’ Perspective 57
- 5 The State and Performance of Affordable Government Housing Initiatives in Malaysia 77
- 6 Understanding Access and Accessibility: The State of Transportation Infrastructure and Affordable Housing in Kuala Lumpur and Putrajaya 97
- 7 Housing Affordability and Productivity: The Socioeconomic Case for Inclusive Urban Housing Policies in Malaysia 123
- 8 Conclusion and the Way Forward 143
- About the Authors 151
- Index 155
