Housing and Local Government Minister Zuraida Kamaruddin has explained that the gross construction cost deposit “exemption” accorded to several developers is not a full exemption.
Firms need to have a good track record and sufficient financial capabilities before they are allowed to pay below the usual three percent deposit, Zuraida (photo) said.
“(For) those people given the exemption, we have to trace their track record first plus their financial capability.
"Based on that, we are willing to do the exemption because we want to ensure they have the liquidity to finish the project, that it will be sustainable and will not be stopped halfway [...]
“We still impose (the deposit) on them (but) my policy is that if they are supposed to give RM13 million (for example), I will just take 10 percent of that to put in the Advertising Permit and Developer’s License (APDL) fund,” she clarified when asked today.
“It is not a full exemption, there is a figure that is attached to that (deposit) [...] because the minimum is RM200,000,” the minister added.
It was previously reported that the ministry had exempted 122 developers from having to pay the full deposit - three percent of the full construction cost - as an incentive for them to build more affordable housing.
The National House Buyers Association opposed the move and contended that the three percent rate ought to be imposed across the board to ensure project completion.
This was especially the case for affordable housing units, it said.
Granting such exemptions is not a new practice, the former BN administration had done so in the past.
Community hub for Ampang flat residents
Zuraida was door stopped by the media after launching a “Komuniti Hab” (community hub) for residents of the Taman Dagang low-cost flats in her constituency of Ampang this morning.
Constructed out of colourful refurbished metal containers and powered by solar panels, the hub comprises a library and a classroom.
Surrounding the hub is a community garden, an “art plaza” space plus a recycling and composting corner.
It is also equipped with a mechanism to harvest and collect rainwater for the garden.
The second such hub in the country under the ministry, Zuraida said that the initiative had cost RM60,000 but was fully funded by sponsors.
Property developer Titijaya Land Bhd supplied two containers while the paint was from Jotun.
The National Library of Malaysia sponsored books for the library while plants were from both the Department of Agriculture and home farming initiative Poptani.
Seido Solutions donated six solar panels to be installed on the roof while Singaporean bike-sharing firm Anywheel donated five bicycles to the hub, to be used by flat residents.
The entire initiative was designed by APUDG and developed by government think tank Urbanice Malaysia.
Speaking at the launch, Urbanice Malaysia chief executive Norliza Hashim said the team had begun engaging the Taman Dagang flat residents in October last year to seek their input for the community hub.
“The objective of the hub is to be a focal point that connects communities who live in this neighbourhood.
“This community hub is flexible in terms of its usage and it can function according to the needs of the residents. Any facilities offered (at such hubs) must be tailored to what is important for the people in the area,” said the town planner.
The Taman Dagang flats comprise 10 blocks and more than 3,000 residents.
Meanwhile, Zuraida repeatedly urged the residents and community leaders to take good care of both the hub and the garden.
“If the community itself is not willing to make this programme a success and to ensure it is sustainable, there is no point. We can come and do this today but then come a month later and find that it has all gone to waste.
“[...] I want the leaders here to ensure this programme is sustainable,” she stressed.
She also urged district councillors and village chiefs to proactively initiate similar hubs in their jurisdictions rather than wait on funding from the government. - Mkini
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