PR1MA units have to be more attractive, says former deputy minister

 

Of the 94 PR1MA projects launched from 2013 to 2018, 32 were cancelled as of last November.

PETALING JAYA: Former housing and local government deputy minister Raja Kamarul Bahrin Shah wants to see the government look into several issues affecting affordable housing schemes such as the 1Malaysia People’s Housing Programme (PR1MA).

PR1MA was established in 2012 with the aim of allowing middle-income earners to purchase their first homes. A total of 94 PR1MA projects were launched from 2013 to 2018, with 32 cancelled as of last November.

As of March 31, PR1MA said it had completed a total of 20,587 units nationwide, with 24,756 units being developed and 7,420 units in the planning stage – well below the government’s target of 500,000 completed units by 2020.

“From day one, when they bought the land, the price was exorbitant and overpriced,” said Raja Kamarul, an architect by training.

“When land is overpriced, it has to be sold at a certain price – so, of course these projects were not going to be viable.

“That’s why until today this is still not resolved. It’s not only the market value, these projects are also not in good locations.

“There are also no good public transport systems. So, for those living in affordable housing schemes like that, just how are they going to stay there?,” the Terengganu Amanah chairman added.

Earlier this month, housing and local government minister Reezal Merican Naina Merican said the ministry will establish a special committee to look into delayed housing projects, such as those under PR1MA.

In a report by Bernama, he said the previous model was not “solid and sustainable” because PR1MA was using an approach that relied on bulk purchases, causing PR1MA to bear all the risks when the houses were not sold.

PR1MA was also in the spotlight on Oct 6, when the Public Accounts Committee (PAC) released its 126-page findings in its investigation into the delays in PR1MA projects.

“PR1MA must implement due diligence in the construction of affordable housing in terms of location suitability, house size and market requirements to avoid the dumping of unsold properties and loss of grants provided by the government,” PAC chairman Wong Kah Woh said in a statement.

“Apart from that, PR1MA must prioritise transparency in its dealings with contractors and landowners in the ownership of development sites and locations to avoid projects being developed into a contractor-centered concept.”

Wong added that most locations and sites were suggested by contractors, who also own the land, hence it was not in PR1MA’s interests. - FMT