9 October 2018 – YB Zuraida Kamaruddin, Minister of Housing and Local Government, at the REHDA Institutes Housing Conference on the theme “Housing in An Era of Change – A New Direction” wants to reduce the cost of doing business, highlighting the need to reduce compliance cost and using efficient building methods such as IBS.
She mentioned that compliance cost takes up about 20% of property development. The ministry wants to reduce the cost of doing business.
YB Zuraida indicated that utilities companies should bear the cost of building the utilities base instead of the cost passed to the developers. On the other hand, she also advocate the use of IBS. In the past there was insufficient volume, but now the ministry are streamlining the agencies to build the volume and it is possible to use IBS for efficient building. She indicated that in Malaysia, the current IBS capacity plants can build an approximate 20,000 units per year.
In regards to affordable housing, YB Zuraida mentioned:
“The ministry is taking a two prong approach, by empowering house buyers on the demand side and reducing costs of development on the supply side.”
Also, more is being done on putting more intelligence to the data:
“we will work towards consolidating data and information and at the same time address data gaps that may exist so that the policy makers, the authorities and the stakeholders can all count on an efficient centralised data / property information system that is effective, accurate, useful and timely.”
REHDA Deputy President YB Dato’ CJ Khor mentioned that, the overall costs of doing business must be lowered to facilitate supply of more houses. This could only be achieved if concerted effort is undertaken to ensure reduction of:
– Compliance costs;
– Legislative requirements;
– Cross subsidises;
– Increased materials and labour costs;
– Increased development charges; and
– Any other non-productive costs that may apply.