I wrote this article earlier: Helping Malaysians own a property to escape poverty One major reason why people continue to be poor is because they spend way too much on property (high rental versus income) or they did not own the home they are staying in, even after they have stopped working. In other words, income stops but rental continues. In many advanced nations, this is one reason why the people continue to live in poverty. Yes, even security guards earning US$36,000 per annum may still be living in poverty in some states in the US. This is why I have to write this article in support of the views from Penang Chief Minister Chow Kon Yeow.
Article in nst.com.my Penang Chief Minister Chow Kon Yeow disagrees with the Federal government’s plan to rebrand the People’s Housing Project (PPR) to Malaysia’s Housing Project (PPM). Currently, PPR tenants were paying a monthly rental of RM100 and maintenance fee of RM24. He said, “Because of this new programme, there will no longer be any new PPR homes in the state. PPR is to help the B40, but there will be no more due to the rebranding exercise. Hence, I urge the Housing and Local Government Ministry to review its decision.”
Chow elaborated by saying that the minimum price for the yet-to-be-announced PPM would start at RM90,000. This is much higher than Penang state’s low cost (LC) and low medium cost (LMC) units which were sold at RM42,000 and RM72,500 respectively. Some of the reasons why the federal government was rebranding was due to the high cost. With this rebranding, state government is required to call for Request for Proposal (RFP) for developers to build the units. The price would definitely be much higher. Please refer to the full Article in nst.com.my here.
Housing is a necessity. It’s not negotiable on whether should the government help them or let the market decide for example. One of the major issue plaguing the current demonstration in Hong Kong for example is also the housing issue. We must NOT have this issue in the future, thus every step taken should be on how to house Malaysian households needing a home. Hopefully the Ministry of Housing and Local Government will be replying soon with a much better solution that what is currently being proposed. Happy understanding.
Next suggested article: Focus on property price, not financing options