KPKT sets aside RM90.4 million for maintenance of low and medium cost strata housing, Johor to give RM1,000 move-in budget for new house buyers and more

28th November – 4th December

The Ministry of Local Government Development (KPKT) is setting aside RM90.4 million for maintenance and repairs of 850 medium and low public and private stata housing throughout Malaysia except Kuala Lumpur.

Meanwhile, the Johor state government has set aside RM3 million as move-in costs for new homebuyers.

1. KPKT sets aside RM90.4 million for maintenance of low and medium-cost strata housing

The Ministry of Local Government Development (KPKT) is setting aside RM90.4 million for maintenance and repairs of 850 medium and low public and private strata housing throughout Malaysia except Kuala Lumpur.

The allocation includes RM46 million for public housing projects (PPP) and RM44.4 million from the Malaysian Housing Maintenance Fund (TPPM) for private housing, said KPKT Deputy Minister Akmal Nasrullah Mohd Nasir.

The funds have been channelled through the state housing boards, state government secretariats and local authorities, reported Bernama.

The maintenance works conducted included lift repair and replacement, water tank and pipe replacement, roof repairs, building repainting, electrical rewiring and replacing public infrastructure that involve joint assets.

“All works were carried out for the safety and comfort of residents,” he said.

Akmal Nasrullah revealed that the Madani government will also increase the allocation of PPP and TPPM by 10% to RM104 million next year.

“The process for the distribution of allocations is the same, we will filter and look at each application to get funds from TPPM and PPP according to the seriousness and needs of each housing,” explained the minister.

2. Johor to give RM1,000 move-in budget for new house buyers

The Johor state government has set aside RM3 million as move-in costs for new homebuyers, said Mentri Besar Datuk Onn Hafiz Ghazi.

Under Johor’s 2024 budget, 3,000 house buyers will each receive RM1,000 once they move into affordable housing units, reported The Star.

He also revealed that the state targets to construct 30,000 affordable housing units by 2026.

“Through the planning design review committee, the state government gathered property developers who have committed to build 5,123 Johor Affordable Housing Units (RMMJ) by next year,” shared Onn Hafiz.

Notably, the state built 7,735 RMMJ in 2022 and 2023.

Aside from RMMJ, the state also plans to build 2,634 Bangsa Johor Residency (RBJ) units in Iskandar Puteri via a public-private partnership with Johor Housing Development Corporation as well as other government-linked corporations.

Onn Hafiz shared that the state had set aside RM56 million for the construction of 147 units of RBJ in Tangkak, RM54 million for 140 RBJ units in Yong Peng, while another RM18.8 million was set aside for 50 RBJ units in Simpang Renggam in 2024.

3. Rehda urges gov’t to adopt automated release mechanism for unsold bumiputra lots

The Real Estate and Housing Developers Association (Rehda) Malaysia has called for the adoption of an automatic release mechanism for properties set aside for bumiputra buyers.

This comes as many developers have already fulfilled the requirements for “advertising the bumiputra units for sale over the required number of times for the required period, yet sales to bumiputra are still not forthcoming,” said REHDA President Datuk NK Tong.

He underscored the need for an automatic release mechanism for such units to prevent unintended consequences such as an increase in unsold completed units, rising house prices for all and potential project delays due to cash flow issues, reported The Star.

He suggested taking appropriate action against developers who are found to have sold bumiputra quota units to non-bumiputra buyers before obtaining state consent.

“We also appeal to state governments not to punish innocent homebuyers with penalties for unknowingly buying Bumiputera units from such errant developers,” added Tong.

4. Penang sees 2,947 unsold property units as of Q3 2023

Penang registered 2,947 units of unsold properties, which are categorised as “overhang”, as of the third quarter of 2023, said Datuk Seri S. Sundarajoo, Chairman of the State Housing and Environment Committee.

Of these, 503 units or 17% are priced below RM300,000, reported Bernama.

Sundarajoo said most of the unsold units were due to the failure of applicants to secure financing from financial institutions.

He noted that the state is committed to the housing agenda set forth in the Penang Vision 2030 as well as the Penang Unity Government Manifesto 2023.

He also assured that the state will continue to provide a balanced and comprehensive approach to housing development, taking into account the local community’s needs.

“The state’s Rumah Mampu Milik (RMM) initiative is a subsidised housing programme borne by the state government or private developers who want to develop housing in Penang,” he said.

“Thus, to enable a development to be implemented holistically, there are also costly housing components that need to be taken into account to provide cross-subsidies to RMM housing projects,” added Sundarajoo.

5. Contractors ordered to pay homeowners for unfinished projects

Accounts executive Mohd Fairul Amir Sharifuddin was left high and dry when the contractor he hired to renovate the kitchen at his terrace home in Pasir Gudang abandoned the project.

This comes even after he has paid RM61,000 out of the RM65,000 cost they had agreed upon, reported The Star.

The renovation project involves extending the kitchen area, installing a tabletop and kitchen cabinet, building a laundry area, roofing and wiring works and installing an exhaust fan.

The contractor, who was hired in January, abandoned the project before Hari Raya Aidilfitri, leaving Mohd Fairul without money to engage a new contractor to complete the project.

With this, he sought RM20,000 in compensation. The contractor, who was absent during the hearing, was ordered to pay the claimant RM20,490 within two weeks.

In a separate case, chemical engineer Muhammad Hadi Mohd Hassan had to fork out an additional amount of RM20,000 to finish the renovation at his Kulai double-storey home, after the contractor failed to complete the RM44,000 renovation project.

While he has paid a total of RM33,000, the contractor failed to complete the project in February, which was their agreed time, and even dragged on until September.

With this, the contractor, who was also absent, was ordered to refund Muhammad Hadi RM8,290 within two weeks.