Table of Contents

1.0 INTRODUCTION...................................................................................................1

2.0 PERUMAHAN RAKYAT 1MALAYSIA (PR1MA).......................................................2

2.1 SKIM RUMAH PERTAMAKU (SRP)..........................................................................2

2.1.1 Main Criteria for Skim Rumah Pertamaku (SRP)......................................3

2.2 PROGRAM PERUMAHAN RAKYAT (PPR)..............................................................3

2.2.1 Criteria of PPR..........................................................................................4

2.2.2 Conditions for PPR Application.................................................................4

2.3 RUMAH SELANGORKU (RSKU)..............................................................................4

2.4 RESIDENSI WILAYAH (RUMAHWIP).......................................................................5

2.5 PERUMAHAN PENJAWAT AWAM MALAYSIA (PPAM/PPA1M).............................6

3.0 THE ISSUES AND CHALLENGES OF LOW-COST HOUSING IN MALAYSIA.......8

3.1 STRATEGIES/ INITIATIVES BY GOVERNMENT...................................................10

4.0 CONCLUSION..........................................................................................................11

5.0 REFERENCES.........................................................................................................12

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1.0 INTRODUCTION

With the goal of creating a society that is established on the values of social justice and

inclusivity, governments have introduced a variety of social housing schemes, with low-cost

housing emerging as a cornerstone in these admirable endeavors. The goal of this

programme is to provide inexpensive housing options for individuals who are struggling with

financial restraints. Additionally, the initiative seeks to address the urgent demand for safe

living places among communities that are neglected. On the other hand, the fact that this

vision has been realized has not been without its challenges.

When it comes to properly managing low-cost housing schemes, governments, local

authorities, Joint Management Bodies, and Management Corporations have all run across a

wide variety of obstacles. When it comes to these challenges, the most significant one is the

frequently difficult work of collecting rental payments and maintenance fees from tenants

who, although receiving subsidized accommodation, are experiencing financial pressure.

The underlying tension that exists between the admirable objective of providing inexpensive

housing and the practical complexities of maintaining such efforts is brought to light by this

duality, which poses a perplexing predicament.

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2.0 PERUMAHAN RAKYAT 1MALAYSIA (PR1MA)

"Perumahan Rakyat 1Malaysia" (PR1MA) was a housing initiative that was

implemented in Malaysia as part of the 1Malaysia People's Housing Programme. The

purpose of PR1MA was to find a solution to the problem of housing that was affordable for

households in Malaysia with a middle income. According to Labin et al., (2014), The My First

Home Scheme (PR1MA) offers 100% financing for residences between 30,000 USD and

67,000 USD, allowing young households earning less than 900 USD monthly to purchase a

home with a 30-year repayment period. This statement has been supported by Ziahee et al.,

(2019), by saying that PR1MA was established in 2011 to address the inequality within the

housing market, which saw the increase in house prices that are not in accordance with the

monthly income increase of Malaysian. Zainordin et al., (2019), also wrote that PR1MA aims

to address the housing supply-demand mismatch caused by socioeconomic development,

urbanisation, and changing population dynamics for low- and middle-income households.

2.1 SKIM RUMAH PERTAMAKU (SRP)

Skim Rumah Pertamaku (SRP), is one of the initiatives provided by the Government

of Malaysia which allow the people to have their own house. The SRP was first introduced

during the Malaysian 2011 Budget Presentation. SRP helps the youth and those who had

just step into their work life with monthly salary not more that RM 5,000.00 to purchase their

first house, is working with the private sector, a Malaysian whose aged below than 35 years

old with commitment expenses not more than 60% of their net monthly salary and for those

who have no bad record on their expenses in duration of 12 months. The existence of this

scheme has allowed them to have their own house with 100% subsidization by the financial

institution which relates to the policy of the Skim Rumah Pertamaku (SRP). To this day,

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CSRP has already guaranteed 9,860 people a total of RM 2.1 billion to buy their first house

(Malaysia, 2023).

2.1.1 Main Criteria for Skim Rumah Pertamaku (SRP)

 Purchasing a first home is contingent on the borrower's abilities.

 Financing is available up to 100%.

 Only main or secondary market residential property (residential property under

development or completed)

 The minimum property worth to be possessed is as low as RM 100,000.

The maximum property worth to own is up to RM 500,000.

2.2 PROGRAM PERUMAHAN RAKYAT (PPR)

Program Perumahan Rakyat which commonly known as PPR is a government

program for resettlement of slums for the qualified as well as meeting the housing needs of

the low-income group (B40) ((KPKT), 2023). The National Housing Department, which is

part of the Ministry of Local Government Development, is the primary implementation

agency for PPR projects in Malaysia. PPR is divided into two types: PPR Rented and PPR

Owned. All dwellings produced under the PPR Owned and PPR Rented programs will

adhere to the low-cost housing planning and design guidelines outlined in the National

Housing Standard for Low-Cost Flat Housing (CIS2) (Negara), 2023).

As for the rental rate of PPR, it can reach as low as RM124.00 monthly excluding the

cost for maintenance. The government also administers PPR Owned, which seeks to give

low-income people the option to own a house. PPR-owned dwellings are priced at

RM35,000 in Peninsular Malaysia and RM42,000 in Sabah and Sarawak.

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 2.2.1 Criteria of PPR

 Areas of big cities: Types of multi-story houses ranging from 5 to 18 floors

 Suburban area: Type of terrace house

 Area: Not less than 700 square feet

 Building - 3 Bedrooms, 1 Living Room, 1 Kitchen, 2 Bathrooms

 Basic facilities:

o Community Hall/Public Space

o Surau/Prayer Room

o Food Stalls/Business Spaces

o Kindergarten

o Disabled facilities

o Playground/Open Area

2.2.2 Conditions for PPR Application

 Applicants and spouses of Malaysian Citizens

 Aged 18 years and above

 Household income below RM3,000 per month

 Applicant and spouse have never owned a home

 According to the additional conditions set by the State Government

2.3 RUMAH SELANGORKU (RSKU)

Rumah Selangorku, launched in 2014, is an affordable housing program in Selangor,

Malaysia, overseen by "Lembaga Perumahan Dan Hartanah Selangor" (LPHS). It offers

below-market-value homes, including landed properties and apartments, targeting first-time

homebuyers and the lower- to middle-class. As a government-backed initiative with specific

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eligibility criteria, it reduces the risk of default for homebuyers, providing eligible residents

with well-located, high-quality homes.

The challenges in managing this low-cost housing scheme are as follows:

a. Land Availability

Securing suitable land for affordable housing is a challenge. The state government must

identify and acquire strategically located land to ensure accessible and well-situated homes.

b. Developer Participation

Facilitating developer participation in the program and ensuring adherence to guidelines,

while concurrently implementing cost-saving measures, is imperative.

c. Eligibility Criteria

Joint management body must verify eligibility criteria for beneficiaries and facilitating access

to financing options pose challenges.

2.4 RESIDENSI WILAYAH (RUMAHWIP)

Residensi Wilayah, formerly known as Rumahwip, is a Malaysian government initiative

launched in 2013. It falls under the supervision of Jabatan Wilayah Persekutuan (JWP) and

aims to offer affordable housing options for lower and middle-income individuals in Kuala

Lumpur and Putrajaya. The primary goals include enhancing accessibility and affordability of

homeownership for this demographic, addressing the disparity between increasing property

prices and affordability, especially for middle-income earners, and supporting aspiring

homeowners to enter the property market for an improved quality of life.

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The challenges in managing this low-cost housing scheme are as follows:

a. Balancing quality and affordability

The program's overarching goal is to furnish high-quality housing at prices within reach for

the target demographic. Achieving the optimal equilibrium between these two objectives

poses a challenge, necessitating ongoing adjustments in the program's implementation for

effective outcomes.

b. Delays and Problematic Projects

These challenges have the potential to impact the program's reputation and influence the

willingness of prospective buyers to engage in the initiative.

c. Eligibility and Affordability Criteria

This necessitates the implementation of stringent eligibility criteria and ongoing monitoring to

prevent any misuse of the program.

2.5 PERUMAHAN PENJAWAT AWAM MALAYSIA (PPAM/PPA1M)

PPA1M, also referred to as PPAM, is the acronym for "Perumahan Penjawat Awam

Malaysia," which translates to the "1Malaysia Civil Servants Housing Programme."

Introduced in 2013, this government housing initiative is specifically crafted to offer

reasonably priced residences to civil servants and government employees. The housing

options within this program are affordably priced, ranging from RM100,000 to RM400,000,

and are predominantly situated in urban areas characterized by high demand. The primary

objective of PPA1M is to provide well-constructed homes at advantageous locations for civil

servants, particularly those in the younger and middle-income brackets.

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The challenges in managing this low-cost housing scheme are as follows:

a. Moratorium and restrictions

The 10-year moratorium and prohibition on owning PPAM properties in other states could

affect the program's appeal. The moratorium limits flexibility for buyers, while the interstate

ownership restriction may constrain mobility for civil servants, reducing the scheme's

attractiveness for those with changing circumstances or potential relocations.

b. Implementation Challenges

Despite the establishment of the PPAM Unit under the Prime Minister's Department in 2014

to enhance project management, challenges persist in effectively implementing the

1Malaysia Civil Servants Housing Programme (PPAM). The case of the Putrajaya

Corporation for the Federal Territory of Putrajaya exemplifies ongoing complexities.

Analyzing and addressing these challenges will be crucial for optimizing the overall success

of the PPAM initiative and improving its execution nationwide.

c. Eligibility Criteria

The 1Malaysia Civil Servants Housing Programme (PPAM) is exclusive to civil servants,

allowing only one project per household. This exclusivity may limit the number of

beneficiaries and intensify competition for available units. Striking a balance between

prioritizing civil servants and ensuring broader access could enhance the program's

effectiveness and fairness.

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3.0 THE ISSUES AND CHALLENGES OF LOW-COST HOUSING IN MALAYSIA

Low-cost housing in Malaysia regards to residential structures that are especially

constructed to fulfill the housing requirements of low-income or lower-middle-income groups.

These housing units are specifically built to be reasonably priced, allowing individuals or

families with limited financial resources to afford them. The Malaysian government, along

with private developers, may implement measures to offer affordable housing in order to

tackle the housing difficulties encountered by economically struggling people.

Therefore, several challenges and issues arise when it comes to Low-Cost Housing

in Malaysia. A comprehensive literature review has been conducted, evaluating findings and

classifying them into three key domains: weaknesses in housing facility management and

maintenance, structural building materials and the mismatch between housing supply and

demand. These issues highlight the necessity for enhancements to guarantee that those

with limited financial resources can access affordable housing that meets high standards,

offering appropriate living conditions.

The primary challenge in low-cost housing in Malaysia revolves around the weakness

in housing facility management and maintenance. Maintenance refers to the necessary

actions taken to preserve a structure in its original state, ensuring it continues to function

efficiently. Several low-cost housing projects face challenges stemming from inadequate

inspection and maintenance, material limitations, design constraints, and a lack of

construction knowledge. A study shown from Zainal (2012), in Kuala Lumpur, Petaling Jaya,

Shah Alam, and Klang discovered significant maintenance problems in several low-cost

housing structures, forcing immediate action to protect them from further deterioration and

decay. Elevated maintenance expenses occur when the management of maintenance

frequently responds to issues rather than taking proactive preventative measures.

Additionally, the use of cheap and low-quality materials by public housing developers further

contributes to elevated maintenance expense.

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 Structural building materials pose a considerable challenge in the context of low-cost

housing in Malaysia. Over the years, affordable housing in the country has often been

associated with the use of lower-quality materials when compared to other housing

categories (Mohammad, 2018). This substandard quality of building materials emerges as a

pivotal factor contributing to the unsatisfactory conditions of low-cost housing. Key

considerations, including housing layout, amenity provision, and the surrounding

environment, play interconnected roles in shaping the overall housing conditions. Additional

challenges, such as design defects, vandalism, and insufficient maintenance, compound the

structural issues faced by low-cost housing. Moreover, the incorporation of hazardous

materials, such as asbestos in roofing and ceilings, as well as lead-based paint, introduces

adverse consequences for both public health and the environment.

Moreover, the gap between the availability of housing and the demand for it presents

significant challenges in the provision of affordable housing in Malaysia. The huge gap

between the demand for housing and the available supply in Malaysia has resulted in a

worrisome surplus of unsold houses. This problem is most noticeable in government-initiated

affordable housing programme like PR1MA, which are defined by a price range of RM

400,000.00 and lower. However, evidence indicates that this pricing surpasses the

affordability threshold for a significant portion of the population, resulting in an excess of

unsold properties, even within the confines of the affordable housing scheme (Azmi, 2021).

In conclusion, low-cost housing in Malaysia faces a number of problems, including an

enormous gap between supply and demand, structural issues caused by poor construction

materials, and difficulties in effective management and maintenance. The success of low-

cost housing programmes is affected by the surplus of unsold housing caused by this

mismatch. Inadequate management and maintenance procedures drive up prices, while

problems with construction materials lower housing quality. A holistic approach is necessary

to overcome these obstacles and provide affordable, high-quality, long-term housing options

for all Malaysians. This approach must prioritise affordability, guarantee high-quality

construction, and establish efficient maintenance systems.

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3.1 STRATEGIES/ INITIATIVES BY GOVERNMENT

Initiatives for affordable housing are essential for meeting the housing demands of

Malaysia's economically disadvantaged people. To help the population afford housing, the

Malaysian government has put in place a number of regulations and initiatives. Examining

the programs implemented to provide affordable housing, this critical assessment evaluates

their efficacy and points out possible areas for development.

The People's Housing Project (PPR), the 1Malaysia People's Housing Program

(PR1MA), and other public-private partnerships are among the projects that have been

introduced. These programs seek to give low-income households access to high-quality,

reasonably priced housing through grants, advantageous financing, and cooperative efforts

with commercial developers. The country's supply of affordable housing units has increased

as a result of the measures, which has helped to reduce the backlog of housing. Working

together with private developers has made it easier to provide affordable housing inside

integrated complexes, which enhances overall quality of life and fosters a feeling of

community.

As previously mentioned, there are worries over the sufficiency of the housing units

in terms of size, design, and infrastructure despite an increase in availability. Therefore, a

few measures need to be considered in order to guarantee that affordable housing projects

achieve their sales targets and that the government's goal of offering its inhabitants access

to inexpensive housing is met. In order to guarantee that individuals who are most in need

receive priority for affordable housing, the government may carry out an extensive

examination of the qualifying requirements. Additionally, by designating representatives for

site inspection to analyse the defects so that the contractor will re-do and repair the defects,

tightening regulations and oversight may ensure the quality and durability of construction

while also addressing issues that have been reported and preventing future issues. As a

result, the buyer will receive the end product in a satisfying condition and meet their

expectations

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4.0 CONCLUSION

In conclusion, the problems and difficulties that the government, local governments,

Joint Management Bodies (JMBs), and Management Corporations (MCs) in Malaysia are

encountering when it comes to the management of low-cost housing highlight the complex

nature of striking a balance between social welfare and practical governance. The

complicated terrain that has been formed as a result of the friction between the admirable

goal of providing affordable housing and the pragmatic realities of maintaining financial

viability calls for the development of innovative solutions.

The participation of all relevant parties in cooperative endeavors is very necessary in

order to effectively address these difficulties. It is imperative that the government, local

authorities, JMBs, and MCs collaborate in order to investigate and investigate possibilities

for community-oriented solutions, transparent governance structures, and sustainable

finance models. The implementation of targeted assistance programmes, the promotion of a

sense of ownership within communities, and the encouragement of renters to acquire

financial literacy are all ways that can help to the development of a more resilient ecosystem

for low-cost housing.

In the end, the ability to turn obstacles into opportunities is the most important factor

in determining whether or not low-cost housing in Malaysia will be successful. Stakeholders

are able to chart a route towards communities that are sustainable, inclusive, and thriving if

they acknowledge the intricacies and learn from their experiences. Not only does the

determination to overcome these problems demonstrate the resiliency of low-cost housing

programmes, but it also reflects the steadfast drive to constructing a society in which the

right to a decent living is actually accessible to all individuals.

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5.0 REFERENCES

Nor Rashidah Zainal, G. K. (2012). Housing Conditions and Quality of Life of the Urban Poor

in Malaysia. Social and Behavioral Sciences 50, 827-838.

Wan Sumayyah Syahidah Wan Mohamad, M. R. (2018). Demystifying The Low Cost

Housing Issues In Malaysia. Journal for Social Sciences , 67-72.

Najihah Azmi, A. A. (2021). THE GAP BETWEEN HOUSING AFFORDABILITY AND

AFFORDABLE HOUSE: A CHALLENGE FOR POLICY MAKERS. Journal of the

Malaysian Institute of Planners, 387-399.(n.d.).

Eshruq Labin, A. M. J., Che-Ani, A. I., & Kamaruzzaman, S. N. (2014). Affordable housing

performance indicators for landed houses in the central region of Malaysia. Modern

Applied Science, 8(6), 70–86. https://doi.org/10.5539/mas.v8n6p70

Zainordin, N., Manoharan, K., Md Judyar, Z., & Omar, A. F. (2019). The Hurdle Delivering

Affordable Housing: Experienced from Pr1ma Project. Journal of Engineering &

Technological Advances, 4(2), 49–63. https://doi.org/10.35934/segi.v4i2.49

Ziahee, J. A., Ahmadi, M. I., Afifah, N. ’, Mahmud, B., Binti, A., Rahman, A., Sakinah, N.,

Sallehin, B., Mohamad, S., Bin, B., & Bakeri, S. (2019). Pr1ma House as An Alternative

for Middle Income Group to Buy Affordable House.

(KPKT), K. P. (2023, June). Program Perumahan Rakyat (PPR). Retrieved from KPKT:

https://www.kpkt.gov.my/index.php/pages/view/256

Malaysia, B. R. (2023, November 15). SKIM RUMAH PERTAMAKU. Retrieved from BR1M :

https://www.br1m.info/skim-rumah-pertamaku/

Negara), T. (. (2023). PROGRAM PERUMAHAN RAKYAT (PPR DIMILIKI). Retrieved from

TEDUH KPKT: https://teduh.kpkt.gov.my/scheme/ppr_dimiliki

Afiqah, Nurul & Kamarul Bahrin, Nur Erisha Syahiera & Rozman, Tajjudin. (2020). HOUSING

AFFORDABILITY PREFERENCES FOR ‘RUMAH SELANGORKU’ SCHEME. Journal

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