15,000 affordable houses to be ready this year

PETALING JAYA: Fifteen thousand units of Rumah Mesra Rakyat single-storey houses are slated for completion nationwide this year, a year earlier than originally scheduled, said Local Government Development Minister Nga Kor Ming.

“As of December 2023, the ministry through Syarikat Perumahan Negara Berhad has completed 13,845 units,” he told theSun.

He said the number exceeds the initial target of 9,000 units set for last year.

Nga added that a target of 500,000 units of affordable houses has been set for completion by 2025, as outlined under the 12th Malaysia Plan.

He said Kelantan took the lead with 2,447 units, the highest number of houses built in the country, followed by Sabah with 912 units, Selangor 897 units, Sarawak 859 units and Penang 112 units.

He added that 62,180 units of Rumah Mesra Rakyat and 99,296 units under the People’s Housing Project have been completed.

He said a total of 274,258 units were completed under both schemes, a success rate of 54.9%.

Nga said the Rumah Mesra Rakyat unit, priced at RM75,000 each, is a 750sq ft single-storey house featuring three bedrooms and two bathrooms, situated on 3,000sq ft of land.

“The project aims to support individuals with a household income of less than RM5,000.”

He said the government subsidy for each unit is RM20,000, which reduces the total loan amount to just RM55,000.

Nga added that the Malaysian Housing Financing Initiative i-Biaya and the Housing Credit Guarantee Scheme administered by Syarikat Jaminan Kredit Perumahan Berhad offer financing options with a limit of up to RM500,000, specifically for those with irregular incomes, including gig economy workers and small-scale entrepreneurs.

“A total of 30,841 loan applications have been approved amounting to RM5.85 billion. Of the successful applicants, 70.7% are aged 35 years and below.”

Nga said the government had allocated a guaranteed sum of RM5 billion in Budget 2023 to assist potential homeowners and an additional sum of RM10 billion has been pledged, as revealed in the Budget 2024 presentation.

“This commitment, subject to parliamentary approval, will benefit up to 40,000 borrowers.”

He added that the National Affordable Housing Council chaired by Prime Minister Datuk Seri Anwar Ibrahim is monitoring the progress of the projects to ensure that the 500,000-unit target by 2025 is achieved.

Nga said the government’s policies and regulations have led to a rebound in the property market and an increase in the development of new housing projects in the country after the Covid-19 pandemic.

“As demand is focused on affordable housing, construction activities have led to massive developments across the country.”

Nga also said the ministry has successfully revived 351 sick and abandoned housing projects comprising 43,738 units.

“Since the establishment of the Taskforce on Private Housing and Abandoned Projects, eight private housing projects with 37,392 units have been revived. The ministry aims to complete 20 abandoned housing projects this year.”

Nga added that 800 housing units in Kuala Lumpur, Selangor and Penang are expected to be built under the Madani Inclusive Housing Project initiative.

“The ministry is preparing the project proposal and we are identifying suitable sites for the construction. The project specifically aims to cater to all segments of the population.”