Archive for category Housing

Najib practices a two faced NEP cum NEM economic policy

By Dr Chen Man Hin, DAP Life advisor
23 Feb 2013

Events have shown that the NEP is still enforced in the economic development of the economy – two faced NEP and NEM economic policy.

Soon after being Prime Minister, Najib launched his New Economic Model to stimulate development with the aim of achieving a high economy like that of the Asian Tigers of Singapore, S Korea, Hong Kong and Taiwan

To do this he had to get rid of the economic handicaps wrought by the New Economic Policy. It is on record that Najib announced on May 2nd 2009 that he would replace NEP with his New Economic Model (NEM).

It is now 2013, and the signs of a high economy are not encouraging. For Foreign Direct Investments (FDIs) of 2012 Malaysia scored 9 billion US dollars compared to Indonesia’s US$19 billion and Singapore US$130 billion. (World Bank figures)

Per capita income for Malaysia in 2012 was US$9500 million, compared to Hong Kong US$30 million, Singapore US$50 million and South Korea US$25 million. Can Malaysia reach a high income status of US$20million by 2020.
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Pakatan Rakyat: Building an Economy for All

by Liew Chin Tong
Sept. 30, 2012

Barisan Nasional paraded its “55 years” of track record” in “fulfillment of promises” – Janji Ditepati – during the Prime Minister Najib Razak’s recent roadshows and on National Day 2012.

One would expect a government with such a long experience in office would have long term strategies for the nation. Unfortunately, apart from arguing that i) change of government is not good for the economy and ii) that it is better to elect the known devils than the unknown angels, BN offers very little beyond the status quo.

BN’s economic platforms today can be summed up as follow:

1) Criticising Pakatan Rakyat’s economic policies as populist (while not offering concrete economic policies and strategies);

2) Offering more handouts to win the general election (which will cost billions of ringgit);

3) Preparing to introduce Goods and Services Tax (GST) after the general election (GST means every single person in Malaysia will be taxed).

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The question of housing (Part 2): Towards a sustainable solution

by Zairil Khir Johari
The Malaysian Insider
Jul 17, 2012

JULY 17 — I have previously written about the housing situation in Penang, in which there is a stark mismatch between supply and demand. This mismatch takes the form of an oversupply of housing stock at both the lowest and highest range of income earners, while there is an undersupply at the middle-income range.

For the bottom 40 per cent of income earners, the number of affordable housing stock doubles the number of families at that income range. At the opposite end, there are more luxury residential developments compared to the number of households at the highest income bracket, though this represents a completely different problem altogether.

However, the real problem of housing in Penang is the unavailability of housing stock to supply the middle-income earners. Currently, there is a shortage of 70,052 units for this group of typically newly-wed professionals and young middle-class families.

This glaring affordability gap threatens to be a serious problem, especially considering the fact that Penang is a middle-income state with a higher-than-national average mean household income of RM4,407 per month. Read the rest of this entry »

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The question of housing (Part 1): Understanding the problem

By Zairil Khir Johari | July 16, 2012
The Malaysian Insider

JULY 16 — As far as Penang is concerned, housing has become a hot button issue. Critics are aplenty and everyone, from the locals at the kopitiams to the expatriates at the cocktail bars, seems to have an opinion on it. However, before lamenting about the housing situation in Penang, one first needs to understand it.

The general grouse is twofold. Firstly, it is said that housing prices are exponentially increasing with no signs of a slowdown. Secondly, complaints are heard that there is not enough housing to cater for the lower-income groups. The fear is then raised that the shortage of low-cost housing coupled with ever-increasing property prices will eventually drive people out of the state, especially from the island.

Now, the first contention is admittedly true. There is no denying the fact that property prices are on the rise, having averagely increased by 50 per cent over the past five years. However, the causes of this phenomenon are often misunderstood. On the second count, to say that there is an undersupply of low-cost housing is inaccurate. In fact, it is a statistical fallacy. Both require further explanation.
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Stop-work orders prove Pakatan strict on developers, says Penang CM

By Clara Chooi
The Malaysian Insider
May 29, 2012

KUALA LUMPUR, May 29 — Lim Guan Eng revealed today that the Penang Municipal Council (MPPP) had issued 259 stop-work orders on housing developments since 2008, claiming this proves that Pakatan Rakyat (PR) is stricter with developers than Barisan Nasional (BN).

The Penang chief minister pointed out that the number of orders issued by the council was a whopping seven times more than the 38 issued by the previous BN state administration from 2004 to 2007.

The Seberang Perai Municipal Council (MPSP) had issued 11 stop-work orders under PR’s rule from March 2008 until May 2012, whereas not one was issued under BN from 2003 to 2008.

“Facts have disproved BN’s claims that the Penang PR state government is the darling of developers at the expense of the public, especially those who need public housing,” Lim said.

“If given a choice, some developers would prefer the BN government which rarely issued stop-work orders, especially in MPSP where not a single stop-work order was issued.

“The huge increase in the number of stop-work orders issued proves that the PR Penang state government is more stringent in upholding the rule of law, demanding strict compliance with technical requirements and more unforgiving than BN,” he added.

However, Lim stressed that despite PR’s stringent rule, the administration remains business-friendly, provided that all investors and businessmen comply by the rules. Read the rest of this entry »

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Two-generation home loans may bankrupt the next generation

Philip Ho
Klik4Malaysia
23 October 2010

Petaling Jaya, Oct 23 – Housing and Local Government Minister Datuk Chor Chee Heung has urged house buyers to sign up two-generation housing loans so that more Malaysians can afford to own houses.

“The most important thing is for the individual to own a house for his family to live in. If loan repayment is extended to the second generation, that means the family will remain intact,” said Chor yesterday after launching the Malaysia Building Society Bhd’s Ultimate Mortgage programme on Friday (Oct 22).

Chor said that the newly announced 2011 Budget also encouraged the two-generation loan term while denying that the move would increase the financial burden of the next generation.

“I don’t think it is a burden for the next generation because the repayment will be spread over a long period and the younger generation are financially strong. They can even buy a second house,” he added.

Klik4Malaysia (K4M) contacted Selangor state government’s chief executive of economic advisory Rafizi Ramli for comments from an accountant’s perspective, regarding the implications on the younger generation’s financial burden. Read the rest of this entry »

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