Housing For Poor People: A Review On Low Cost Housing Process in Malaysia
Housing For Poor People: A Review On Low Cost Housing Process in Malaysia
Housing For Poor People: A Review On Low Cost Housing Process in Malaysia
Moghimi
Abstract: - The main emphasis of Malaysia’s housing policy is on the provision of adequate, affordable
and quality housing for all Malaysians. The government is encouraging the private sector to produce low
income housing in affordable prices. But the scarcity and high cost of land in urban areas raise costs of
labors and materials and affect low-cost housing programs. This research is an overview to Malaysia low
cost housing’s need and Malaysian approach to low cost housing (LCH). In this study the process of a
sample LCH has defined and barriers and difficulties in constructing LCH has discussed. The results
confirmed that making balance between low income obligations and developer’s profit-making is the key
element for building more LCH in the country.
Key-Words: - Low Cost Housing (LCH), Low cost settlement, Low income housing, Affordable housing,
To alleviate poverty, the government Habitat Agenda, the main document adopted by
applied various programs and projects intended the 171 UN member states in Istanbul,
for rural and agricultural households. Among recognizes that adequate housing is a
others, the poor participated and benefited from fundamental human right. In this conference,
projects such as the Integrated Agricultural members reconfirmed that adequate shelter is for
Development Projects focused on the provision all and reaffirmed sustainable human
of agriculture infrastructure, replanting schemes, settlements, enablement and participation,
land consolidation and rehabilitation and support gender equality, financing shelter and human
services [4]. In addition, greater employment settlements, international cooperation for
opportunities from off-farm and non-farm helping poor people [7]. Five years after Habitat
activities helped to increase the income of poor II, the General Assembly of the United Nations
households. In summary, housing in Malaysia held a special session to review and appraise
needs to be expedited for sustainable growth as implementation of the Habitat Agenda
part of economic and social activities. worldwide under the name Istanbul+5. The
dialogues focused on some of the main outputs
2 Background of Housing Policies proposed by the Habitat secretariat for the
Istanbul+5 exercise, namely: a declaration on
in the World the norms of good urban governance [8]; a
All housing policy documents in the world in
World Charter of Local Self- Government and; a
recent years confirm that governors and planners
declaration on secure tenure. UN members
have to promote full housing accessibility for
renewed a rights-based approach to the Habitat
high risk people including the disabled and
Agenda and stressed issues such as women and
women as heads of families, which can be
land inheritance, slum upgrading and
reflected in gender equality in policies, programs
alternatives to forced evictions. This dialogue
and LIH projects as sustainable human
helped define a consultative process towards the
settlements development. On December 1948,
development of a normative framework for
the general assembly of the United Nations
security of tenure. Members urged Habitat to
adopted and proclaimed the Universal
utilize the preparatory process for Istanbul+5 to
Declaration of Human Rights. Article number 22 enhance the draft declaration on secure tenure
mentions:
[9].
“Everyone, as a member of society, has the
In the literature review of the study, it is
right to social security and is entitled to
found that new problems in housing came about
realization, through national effort and
because many poor families in Asia, Latin
international co-operation and in accordance America, Africa and even in developed
with the organization and resources of each
countries, have no access to mortgages or loans
state, of the economic, social and cultural rights
for building or buying a home. According to
indispensable for his dignity and the free
Peter Ward (2001, p.93), lack of access to credit
development of his personality [5] “
“forces families to make do with inadequate
Housing rights are unmistakably part of resources, to live and work in multi-functional
international human rights law [6]. The right to
spaces combining makeshift shacks, partly
adequate housing is embedded in the Universal
finished rooms, and temporary partitions for
Declaration of Human Rights (1948) and major
walls [10].” The failure of many poor families
international human rights treaties such as the
to access mortgage or different loans is often
International Covenant on Economic, Social and
viewed as a symptom of greater underlying
Cultural Rights.
problems of poverty, low wages and
The second United Nations Conference on
unemployment in the country. Access to formal
Human Settlements (Habitat II) [7], held on 3-14
financing, considered distant from average
June 1996 in Istanbul, Turkey, set out important
household income levels, is an important
changes in the approach to the development of
determinant of housing conditions [10].
human settlements in an urbanizing world. The
Research shows that financing institutions [14]. The construction of medium and high cost
favour households with above-average incomes, housing by private sector has achieved 187%
employed in the formal sector, and where the and 435% respectively of the targeted units.
head of household is male. Even housing finance This situation created the oversupply of housing
institutions aimed at assisting low-income stock for both categories during 1997-2000 [15].
families have often been inaccessible to the The Asian economic crisis worsened the
majority of the poor people. properties scenario in Malaysia is resulting too
many unsold properties including medium and
3 Low Income Housing in Malaysia high cost housing. The construction of low
Malaysia had been faced with increased medium cost housing across Malaysia’s states
population from 21.3 million in 2000 to 25 also shows the imbalance of distribution with
million people in 2008. Yet, this is when the several states not even building a single low
population growth rate decreased from 2% in medium cost houses until 1999 including the
2000 to 1.75% in 2008. During this period, the Federal Territory of Kuala Lumpur.
birth rate and death rate have both decreased. Moreover, the conditions imposed by local
Life expectancy has increased from less than 71 authorities are different from one project to
years to more than 73 years. Gross Domestic another. This inconsistency creates confusion
Production increased from 207 in 2004 to 358 in among the private developers. This study’s
2008 which decreased the number of poor survey shows that housing delivery system for
people significantly. It means that GDP has low medium cost housing needs to be more
increased from $9000 in 2004 to $14,400 in stringent because there is no control over the
2008 per capita [11]. Statistics show that the purchasers. This category of housing is
population under poverty line has decreased obviously becoming the choice of the property
from 8% in 2002 to 5.1% in 2008 and %4 in speculators. They believe that it is because of the
2009 [11]. On the other hand, the labour force absence of proper regulatory measures by the
has increased from 9,300,000 in 2000 to local authority that the price of low medium cost
10,910,000 in 2008. housing in Kuala Lumpur are mostly pegged
Because of around 3,000,000 foreign between RM70, 000 to RM85,000 per unit.
labours in Malaysia, the fixed rate for minimum In fact, the Kuala Lumpur area faces
wage has generated discussions among different inadequate low income housing. This lacking is
groups [12]. On May 2, 2008 Malaysia’s top because of high number of foreign workers and
union chief called for a minimum wage of RM immigration of Malaysians from rural area. In
1,200 ($375) to help workers cope with soaring addition, developers mostly engage in
food and fuel prices but this has yet to be constructing medium income and luxury
practiced. The Malaysian Trade Union Congress housing. Although Malaysian regulation forces
(MTUC) presented a memorandum on Oct 7, developers to construct 30% of their total
2008 to the Human Resources Ministry, produce as low cost housing, this is not visible
highlighting the numerous threats faced by inside the city [12].
workers. The MTUC demanded that the
government fixed a RM900 minimum monthly 3.1 Low-Cost Housing in Malaysian Plan
salary under the Employment Act [13]. The Ninth Malaysia Plan (9MP) gave special
The government of Malaysia has focused attention to low-cost housing. The overall
more on low medium cost housing during the performance of houses built under the low-cost
Seventh Malaysia Plan (7MP) with a total of housing category is encouraging with 200,513
350,000 units or 44% from the total 800,000 units completed or 86.4% of the target. Out of
units planned. Although the number of units this number, 103,219 units or 51.5% were
planned for low medium cost houses are the constructed by the public sector including state
highest compared to other categories, the economic development corporations [2]. To
achievement is relatively low in both sectors ensure an adequate supply of low-cost houses,
The Malaysian government has been Height medium cost building, 1.5 km to Mines
concentrated more on low medium cost housing shopping centre and 2 km to KTM station in
during the 7th Malaysia Plan with a total of Serdang.
350,000 units which is almost equal with 44% The project has built by Tan & Tan
from the total 800,000 units planned [22]. Construction Company. Established in 1971,
Tan & Tan Developments Berhad (Tan & Tan)
has been the recipient of The Edge's Top
6 Research Methodology Property Developers Award for seven
This research adopted Yin’s (2003) case study
consecutive years and has been awarded the
research methodology. Yin (2003) believes that
prestigious FIABCI Award of Distinction for
a case study research is most appropriate when
Residential Development in the year 2002. The
researchers are interested in learning how or
company is a wholly owned subsidiary of IGB
why something occurs, when the research
Corporation Berhad, which is listed on the main
focuses on contemporary events, and when
board of Bursa Malaysia.
control of behavioural events are not necessary.
Residents of this building are enjoying
Questions starting with what, why and how are
recreational facilities such as playground, Mini
best addressed by case study, as pointed out by
market and Badminton court. Badminton court,
Yin (2003) [23]. There are five critical
children playground, a big area as car park, mini
components comprising the case study research
market and even security covers some needs of
design. These include: first, study’s research
LI people in PBH.
question(s); second, the research proposition(s);
third, the unit(s) of analysis, fourth, the logic
linking data to the proposition(s) and; fifth, the
criteria for interpreting the findings [23].
The case study was not used to prove Malaysian
low cost housing’s process at this step.
Moreover, the methodology is not looking for
analyses the sporadic developers and low cost
housing which have done out of normal process.
This study tries to explain Pangsapuri Belimbing
Height (PBH) low cost housing process as a
normal and official trend in line with Stake
(1994) which believes a case study method was
used, either to provide a better understanding of
a theory or refine it.
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