K2K Programme To Transform Malaysia’s Public Housing, Increase In RMR Income Eligibility To Benefit M40 Group And, More
11th April – 17th April
Prime Minister Datuk Seri Anwar Ibrahim has launched the Kita-Untuk-Kita (K2K) programme, which will be spearheaded by Think City, community-based organisations, community leaders and non-government organisations, as part of Budget 2023 initiatives.
Meanwhile, industry players believe the government’s decision to raise the monthly household income eligibility for applications to Rumah Mesra Rakyat (RMR) will benefit Malaysians, particularly the middle-income group.
1. K2K programme to transform Malaysia’s public housing
Prime Minister Datuk Seri Anwar Ibrahim has launched the Kita-Untuk-Kita (K2K) programme, which will be spearheaded by Think City, community-based organisations, community leaders and non-government organisations, as part of Budget 2023 initiatives.
The programme is aimed at raising support for public housing communities and building management to solve economic, social and physical challenges through four essential areas – legislative change, community co-management, community empowerment and enhanced income production.
In fact, Noor Hayati Ismail, People’s Housing Project (PPR) Community Association’s Secretary, believe K2K has the potential to transform public housing from being a poverty trap to a liveable community, reported the New Straits Times.
K2K will begin with public housing in Kuala Lumpur, before moving on to Selangor homes.
Selangor Menteri Besar Datuk Seri Amirudin Shari said the initiatives are meant to help people weather the COVID-19 pandemic with the help of non-profit organisations and the private sector.
2. Increase in RMR income eligibility to benefit M40 group
Industry players said the government’s decision to raise the monthly household income eligibility for applications to Rumah Mesra Rakyat (RMR) will benefit Malaysians, particularly the middle-income group.
Asiacap Valuers and Property Consultants Sdn Bhd property valuer Kit Au Yong pointed that it would benefit those with a slightly higher income and those who have been rejected before due to previous conditions.
“It will benefit many, especially those working in urbanised areas where the cost of living is much higher, it is likely this group will benefit from this,” he told Bernama.
“RMR is another subsidised programme providing comfortable affordable housing for those with land which is a good programme especially for those with limited access to the mortgage financing market.”
Datuk Sr Firdaus Musa, International Real Estate Federation’s (FIABCI) Malaysia President, expects the RMR policy revamp to bolster applications and promote home ownership for the target group.
Local Government Development Minister Nga Kor Ming has announced that the household income eligibility limit for RMR applications has been raised to RM5,000 from RM3,000 previously, said Bernama.
3. Residential Tenancy Bill to be table next year
Deputy Minister for Local Government Development Akmal Nasrullah Nasir has said that the Residential Tenancy Bill, which is aimed to protect tenants’ rights, can only be presented to Parliament next year.
This comes as the ministry still needs to secure feedback on the bill before it is tabled in Parliament, he said.
He was commenting on a call by Malaysian Property Lawyers Association’s former president Nazri Mustafa to speed up the tabling of the bill.
Nazri noted that the lack of specific laws determining the rights of tenants and landlords created conflicts that are difficult to resolve within the court of law, reported Free Malaysia Today.
Meanwhile, Akmal revealed that the ministry also plans to update the Local Government Act 1976 to take action against property owners who improperly renovate their home, such as turning their balconies into rented rooms.
He explained that the ministry is responsible for planning only and has no authority over completed or renovated homes.
4. ECRL project 42% complete, on track for 2027 launch
Work progress on the East Coast Rail Link (ECRL) is now 42.06% complete, which makes the project on track for launch by early 2027, said Transport Minister Anthony Loke.
“The level of progress recorded is in line with the completion schedule of the project alignment ECRL from Kota Baru, Kelantan to ITT Gombak, Selangor in December 2026,” said the minister.
He shared that one of the project’s biggest challenge – the Genting Tunnel, which is a 16.39km twin-tunnel design – has already been excavated using an advanced tunnel boring machine method, reported Malay Mail.
“The construction of the Genting Tunnel is a key component of the ECRL project because it completes the land bridge or ‘landbridge’ for the transport of cargo from Port Kuantan to Port Klang and can continue to connect passengers from the East Coast states to Gombak,” said Loke.
Spanning four states – Kelantan, Pahang, Selangor and Terengganu— the ECRL was initially announced in 2016. It is the flagship project of China’s Belt-Road Initiative within Malaysia and links the major ports of the peninsula’s west and east coasts.
Construction started in August 2017, but was halted in 2018 before resuming in 2019.
5. Overhang residential units down in 2022
Malaysia saw residential overhang decline from 36,863 units worth RM22.79 billion as of end-2021 to 27,746 units worth RM18.41 billion as of end-2022.
Johor continued to have the highest number of unsold completed homes, with 5,258 units worth RM4.33 billion. It is followed by Selangor with 3,698 units worth RM2.74 billion and Penang with 3,593 units worth RM2.74 billion, reported Bernama.
Majority of the unsold homes were priced from RM500,000 to RM1 million, accounting for 33.6% of the total unsold completed units, said Deputy Finance Minister Datuk Seri Ahmad Maslan.
Unsold completed homes priced below RM300,000 stood at 6,509 units valued at RM1.34 billion. Meanwhile, 8,128 units were priced between RM300,000 and RM500,000, with total value at RM3.29 billion.
Ahmad pointed to the people’s ability to acquire homes as well as the supply of homes in locations which did not meet demand as some of the causes for the high number of unsold completed units.
He said Melaka was the only state in Malaysia which was able to match the ratio of affordable housing with the purchasing ability of buyers.
6. YNH Property to launch RM600 million mixed-use township in Negeri Sembilan
YNH Property Bhd will mark its entry into Negeri Sembilan with the launch of a RM600 million mixed-use township project this quarter.
The first phase of the township will include 500 housing units that is set for launch in Q2 2023, reported the New Straits Times.
The Kuala Pilah District Council (MDKP) has granted the development order (DO) for the 2,200-unit project.
YNH Property General Manager James Ngio said the firm is excited to bring to Negeri Sembilan its expertise and proven track record in township development.
He is confident that the township will help spur economic growth, meet the high demand for quality yet affordable homes as well as consolidate the firm’s status as a developer of choice for townships.
YNH Property has a history of developing 13,000 mixed development units in Seri Manjung, Perak since 1982, which has attracted a significant number of retail, residential and commercial interests, as well as spurred tourism activities within the area, said Ngio.
7. Residents urge Penang to fulfil seaside pocket park promise
Hundreds of residents from two condominiums in Tanjung Bungah are urging the state government of Penang to fulfil its promise of building a seaside pocket park behind their condominiums.
According to residents, former chief minister Lim Guan Eng officiated the seaside pocket park’s launch, one month before the 14th general election in 2018, reported the New Straits Times.
However, no progress has been seen since then.
“Does it take four years to build a park? To develop a green lung?” asked Oo Hui Ying, chairman of One Tanjong Condominium.
She revealed that the residents do not want any other development, except for the seaside pocket park.
Currently, the site is filled with rubbish and overgrown vegetation.
Meanwhile, the Tanjung Bungah assemblyman said the pocket park is a condition on a planned low-rise development within the area, since the RM500,000 allocation for the development of the park had been used for COVID-19 related aid.
“So, when the developer submitted plans to do a low-rise development there, we decided to impose upon them to do it. It will cost much more to do a nice park,” he said.
