The construction of new homes for workers at Elphil estate in Sungai Siput, Perak, under a special scheme is still on hold because of cost issues.
Human resources minister Steven Sim said Sime Darby Plantation Bhd, now known as SD Guthrie Bhd, had agreed to hand over 4ha of land to Putrajaya for the construction of the homes.
The company had agreed to this in February 2020, based on past reports.
Sim said his ministry then held a series of discussions with the housing and local government ministry and Syarikat Perumahan Negara Bhd (SPNB) regarding the homes.
“The housing ministry and SPNB said there were costs that needed to be borne, and that there were constraints in terms of funding to carry out the development.
“Therefore, the proposed development through the housing ministry and SPNB could not proceed,” he said in a written parliamentary reply.
Sim said the human resources ministry also held talks with SD Guthrie and the Perak Housing and Property Board (LPHP) on the proposal to build the homes for the estate workers.
“LPHP agreed in principle with the proposal. However, costs involving the transfer of land ownership, division of boundaries, and change in land use terms are still being studied by the ministry,” he said.
He was responding to S Kesavan (PH-Sungai Siput) who asked for an update on the proposed home financing scheme for the Elphil estate workers.
In May 2022, former human resources minister M Kulasegaran questioned if the government had abandoned plans to build these houses.
He pointed out that SD Guthrie had agreed to allocate the land for the construction of about 100 units of medium-cost homes for the estate workers to purchase and own.
Under the special scheme, he said, Bank Simpanan Nasional would offer the estate workers a 35-year loan with a 2% interest.
The houses were supposed to cost less than RM150,000.
