Trust fund to transform affordable housing development

KUCHING: The Sarawak Government will establish a trust fund to revamp the existing mandate for the private sector to allocate 30 percent of their housing projects to low-cost housing.

Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said under the forthcoming arrangement, housing developers will be required to contribute 30 percent of the value of a specific housing scheme to this trust fund, rather than constructing physical low-cost houses, ensuring quality and affordable houses for the B40 and M40.

“With the contribution from the private developers as well as the allocations from the government in the trust fund, we are able to build quality and affordable houses for the people,” he said at the 30th Anniversary of the Sarawak Housing and Real Estate Developers’ Association (SHEDA) Annual Dinner and Excellence Award at Borneo Convention Centre Kuching (BCCK) here last night (Nov 25).

The current state policy, implemented in 2016, obliges private developers developing lands of 10 acres or more to allot up to 30 percent of their housing projects for affordable housing.

Abang Johari said the 30 per cent of the low cost housing or affordable housing has been a long standing issue, attributing issues to escalating building material costs and expensive land prices faced by developers.

“Many of these houses are ‘under requirements’… Some developers have been saying it is due to the increasing prices of building materials while others claimed the expensive land prices. I don’t blame the developers but we have to admit – this is an issue,” he said.

He said the proposed fund will be managed by the government to aid in the proper planning of low cost housing and maintaining the quality of low-cost houses.

“If the land in the urban area is expensive, then, we will consider building apartments. As for the rural areas, we can apply the (government’s) resettlement scheme where a land premium payment is capped at RM2,500 for each residential lot.

“We will continue to work with SHEDA, to further discuss on the formula or mechanism (for the trust fund) and on how things are going to work to ensure it is fair to everyone. My government is always fair to everyone,” he said.