Nanyang Siang Pau, October 9th 2014
(Kuala Lumpur 8th Oct.), Malaysia House Buyers Association (HBA) Honorary Secretary General Chang Kim Loong criticized PRIMA for cooperating with the private developers to push up the price of houses under the 1 Malaysia People Housing Programme ( PRIMA ) or manoeuver the price offered slightly lower than the prevailing market price. This action is against the objective of introducing the PRIMA project.
He added by cooperating with the private developers, it will enable the later to add the profit margin onto the house price which is very close to the market price level.
The price is slightly lower than the market price
According to sources, the house price under the PRIMA project should be about 20% to 30% lower than the market price.
Chang Kim Loong expressed himself in The SUN that political figures in Penang had criticized the Penang state government for using unscrupulous tactics. According to the critics, he foresees that once the private developers join the PRIMA project, the price of the houses will be slightly lower than the market price. This cover-up tactic is to hoodwink the Rakyat in believing that it is a PRIMA project.
He continued: “Who are the developers? (government) How did they choose them? What are the promises and responsibilities of the developers that have to be taken into consideration when awarding them the PRIMA projects?”
He pointed out this scenario looks like a true story, privatization of government projects or facilities are not transparent; certain people became rich overnight; cost of public expenditure suddenly increases; and the absence of equal opportunities policy to deter critics.
At the same time he felt that once the private developers join in the project, the housing price cannot sustain at a low level. This is especially true for they will be giving excuses like cost of materials has increased and problems related to shortage of manpower.
The government should start the project on government land
Chang Kim Loong opined that PRIMA should become the developer and appoint construction companies to build houses on government land.
The government is capable of becoming a developer
“Why does PRIMA need to sign a joint venture contract with the private developers? PRIMA itself can be the developer.” He added that PRIMA was a very noble concept but was not implemented properly. He urged the PRIMA organization to be more responsible and transparent in planning the project.
He added that in order to achieve affordable houses, the government should pledge government land under the PRIMA project. The price of the houses on government land is worth more than the subsidies given by the government and this is the objective of PRIMA to provide affordable houses to the Rakyat.
“Now PRIMA does not have any impact on the prevailing price hike of houses. Hence PRIMA should consider awarding itself a developer’s right to make an impact.
Buying an affordable house can receive a RM30, 000 subsidy
REDHA suggested that any house priced less than RM 500,000 can be exempted from paying the excise duty. This measure is to encourage more developers to build affordable houses especially in areas like Kuala Lumpur, Johor and Penang.
RM500, 000 excise duty can be exempted.
He said to THE STAR: “In principle we agreed for the government to implement the excise duty but we are thinking of the long term equivalent tariff.”
However REDHA opined that the DIBS plan provided by the developer should be extended to first time house buyers who purchase a house less than RM500, 000.
In the coming 2015 budget, REDHA hopes the government will provide an incentive of RM30, 000 to affordable housing under My Home Planning. This benefit should include the first time house buyers.
Besides that the Chairman of the Master Builders Association Malaysia, Matthew Tee Kah Ern urged the government to lower the corporate tax from 24% to 17 % as it was implemented in other South East Asian nations.
To create an opportunity for first time house buyers
Chang Kim Loong was afraid the rationales of giving opportunity to second house buyers may be at the expense of the first time house buyers who do not even have the opportunity to buy PRIMA houses yet.
“The CEO of PRIMA, Datuk Abdul Mutalib Alias said it is a must to prevent house buyers from using the housing scheme to speculate to earn quick money.”
Should build the scheme located at the lower income group area
He also hoped that PR1MA can work hand in hand with the Opposition state government of Selangor to build housing project at the lower income group area.
He pointed out that the government policy never finds an alternative to abolish the system of deposit. This causes the area to have acute shortage of affordable houses. The poor Rakyat should not be victims of political oppression.
The housing scheme should be under the government housing board
Besides that he also felt that PR1MA which is under the Prime Minister Department should be taken over by the Ministry of Housing and Local Government because at present the PR1MA project is not under the controlling act of Housing Developers.
“PR1MA needs no developer’s licence, no advertisement and no sales licence to sell houses. Whoever buys a PR1MA house is not protected by the Housing Developer Act.”
Original Source: 购屋者协会非议PR1MA与私企合作 障眼法推高一马房价