REHDA Institute Releases Affordable Housing – The Game Plan Transformation

14 July 2018 – REHDA Institute have today released Affordable Housing – The Game Plan Transformation.

REHDA President Datuk Seri Fateh Iskandar mentioned that:

“the whole world, everybody is facing the same issue on affordable housing some countries tackling better, some counties struggling”

“disposable income has to go up but for income to go up, productivity have to go up”

“we are the only country with very high cost subsidy that has been going on about 40 years. this cost subsidy can happen when the market is ok, however for the last 4 years has been facing challenges.”

The following are the report gist:

9 structural problem that requires urgent addressing:

  • Fragmented and unlevel playing field
  • Rigid housing policies, current quota and price control
  • Unsuitability of location
  • Scarcity of land
  • Cross subsidies making price more expensive generally
  • Rising development cost
  • Unproductive use of public fund
  • Low financial capacity of bottom and middle 40 groups
  • Absense of reliable and upto date market data

Key Transformation Outcomes:

A Holistic Approach To Ensure Sustainable Supply of Public / Social Housing

  • CHANGE OF ROLE PLAY IN DELIVERY OF SOCIAL / PUBLIC HOUSING
  • A NEW POLICY THAT EFFECTIVELY REMOVES UNPRODUCTIVE SOCIAL HOUSING POLICY ( AFFORDABLE HOUSING QUOTA AND PRICE CONTROLS) & REALIGNMENT OF POLICIES
  • PRIVATE SECTOR WILL PAY SPECIAL INDUSTRY CONTRIBUTION FOR A LIMITED PERIOD, FUNDS OF WHICH ARE TO SUBSIDISE RENTAL FOR B40 GROUP
  • FORMATION OF SPCA TO ACHIEVE
  • RENTAL HOUSING FOR B40, SALE OF PUBLIC HOUSING FOR M40, AND VICE VERSA
  • HOUSEHOLD DEBT –AT A BIGGER OR MORE FOCUSED SHIFT FROM UNPRODUCTIVE DEBT TO RESIDENTIAL DEBT (RESIDENTIAL LOAN)
  • REFRESHED SOLUTION TO ADDRESS DOWNPAYMENT AND FINANCING TO M40 BORROWERS
  • INTRODUCTION OF NEW FINANCIAL TO ASSIST PUBLIC SECTOR TO BUILD MORE PUBLIC/SOCIAL HOUSING (RESIDENTIAL REITS)

 

 

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