KUALA LUMPUR: The government should form a study group to review housing policies on Rumah Mampu Milik (RMM) and determine whether resources are being channelled to areas of genuine need, a retired developer said.
Datuk Anthony Adam Cho said many housing challenges stem from statutory requirements imposed on developers to include RMM units in every project, regardless of whether there is demand in those areas.
“Many projects, especially those priced below RM300,000, are statutory requirements to provide affordable housing for the B40 and lower M40 groups without studies to determine if these groups exist in those areas.
“Many of these projects are far from public transport and essential facilities, resulting in buyers paying excessive toll and petrol costs to commute.
“The government should set up a study group to review the policy imposed on developers regarding RMM and whether resources would be better directed to areas in need instead of a blanket policy requiring RMM in every development.”
Yesterday, the New Straits Times reported that Malaysia may be heading for another property glut, with almost 100,000 residential units unsold in the first three months of the year.
This figure includes completed, under-construction and yet-to-be-built homes.
Data from the National Property Information Centre shows that homes in the “affordable” bracket, priced between RM200,001 and RM300,000, account for the largest overhang.
This is followed by those in the RM300,001 to RM400,000 range.
Overhang units are defined as completed properties that have been awarded a certificate of completion and compliance by local authorities but remain unsold for more than nine months.
Cho said the overhang was not simply a matter of affordability but reflected deeper structural issues in the economy.
“If you look at the overhang figures, properties below RM400,000 are the ones struggling to find buyers.
“This is because most youth cannot secure permanent jobs.
“Every year, we produce thousands of graduates, but job opportunities are scarce and limited,” he said.
He said weaknesses in the education system and a lack of long-term human capital planning had also contributed to the issue.
“Our education policy needs to be revamped. We are not producing enough talent. Instead, we are trying to churn out most youth as degree holders, regardless of whether they are qualified.
“The country has failed to groom youth according to their strengths and talents.
“Many graduates end up jobless, while corporations complain that graduates cannot even conduct themselves properly in interviews.”
Cho said that the government could buy low-cost and RMM units and rent them out to occupants for a 10-year tenure, giving them time to achieve career stability and financial capability to buy their own homes.
© New Straits Times Press (M) Bhd
