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Statement by Dr Tan Seng Giaw, DAP National Vice-Chairman and MP for Kepong on the difficulties in implementing housing projects. 20.10.2000

In all countries, building enough houses for people is difficult. Some countries do better than others. In Malaysia, people especially poor people continue to cry for houses. In places where the Government only builds houses for rental, squatters refuse to move unless they are given a chance to buy these houses.

We raise housing problems in Parliament regularly. On 17 and 18 October 2000, the Deputy Minister for Housing and Local Government Datuk Peter Chin Fah Kui answered questions on low-cost housing.

Datuk Chin said that up to June 2000, 595,519 units of low-cost houses had been built. Of which only 5,577 units, 0.94%, had not been sold because of factors such as location being far, unsuitable houses and end financing.

"92% of the 200,000 low-cost houses under the Seventh Malaysia Plan (1996-2000) have been completed," he added.

Apparently, if a family earns between RM 1,250 and RM 1,750, it can afford to buy a house of RM 25,000.

The Deputy Minister insists that the Government does not have any problem with financing and the allocation under the Seventh Malaysia Plan has been increased from RM 504.3 million to RM 823.324 million. Assistance to state governments is RM86 million and RM 370.3 million for integrated People's Housing Programme with 35,000 units for rental, to clear the squatter areas in Kuala Lumpur. BY 2003 and 2004, the total allocation for this programme will be RM2.327 billion.

He mentions the increasing cost, difficulty in finding suitable land and expensive land. Under the Eighth Malaysia Plan, he suggests coordination with all concerned in housing development to give priority to low-cost housing.

Besides the factors stated, there are others such as approval of various plans including fire department, planning unit in local authority, water, electricity, telephone and environment. As a housing project consists of low, medium and high cost houses, approval by different authorities takes time. For some reasons, files may be lost. There are irregularities. If a developer or an architect wishes to get plans approved, he or she may have to resort to various means. This applies to certificate of fitness.

We expect the Environment Department to turn down projects that affect environment. But, if a project fulfills all the conditions, we expect it to be passed by all authorities quickly. Is it possible? Many believe that it is not, unless we are prepared to do something irregular.

Some people believe that irregularities are rampant. But, we need evidence and witnesses. These are hard to get.

The Government is formulating the Vision Development Policy and the Eighth Malaysia Plan to be presented in April 2000. Let us hope that it will investigate and eradicate all irregularities in housing development. These include allocating low-cost houses to people who can afford to buy more expensive ones.

The Government spends billions on low-cost housing. It should use the money effectively. Then, it should give these houses to those who really deserve them.

Dr Tan Seng Giaw