Chor: There are challenges to meet housing demand in all segments

KUALA LUMPUR: The challenge for the local housing industry is no longer about insufficient housing stock, especially in the affordable housing segment, but rather about ensuring that there are enough houses for various income segments of society and its sustainability.

Local Government and Housing Minister Datuk Wira Chor Chee Heung stated that the key challenges facing the housing industry were matching supply and demand for affordable housing, and increasing quality of new and existing houses.

The housing industry needs to review current policies, strategies and introduce best practices to enhance the quality of life of the people, as the country is gearing towards a high-income economy, Chor said in a keynote address at the opening of The Edge Property Excellence Awards 2010 last night.

Chor added that the government was committed towards ensuring access to quality and affordable housing.

“This is to meet the needs of a growing population by matching demand and supply, promoting an efficient and sustainable housing industry as well as providing efficient public utilities and services and a clean environment,” he said.

The New Economic Model (NEM) unveiled by Prime Minister Datuk Seri Najib Razak in March is slated to transform the country into a high-income economy, with per capita income of US$15,000 (RM46,350), from the current US$7,000, in 10 years.

Chor said the government would also focus on needs of other income groups namely the high and middle-income sectors, with focus on quality in terms of design, materials used, infrastructure, health, safety and security.

He also urged the property and housing sector to take heed of this call from the government to transform the landscape of the sector into a more robust and sustainable industry.

“Towards this, the private sector is called upon to play a crucial role as espoused under the 10th Malaysia Plan which seeks to increase private investments in the economy, improve efficiency in the delivery of services and ease the government’s financial burden,” he said.

Chor added that meeting the need for environmentally sustainable houses and also the continuous efforts to regulate the housing industry to ensure efficiency was vital as well.

On regulating the housing industry, the ministry has also instituted several initiatives through the National Housing Department to reduce the number of private abandoned housing projects and the ministry is taking action to strengthen the effectiveness of existing enforcement and monitoring mechanisms such as improving the reporting of Form 7(f) under Act 118 to provide additional information of financial details of Housing Development Account (HDA) transactions.

This article appeared on the Property page, The Edge Financial Daily, October 8, 2010.