PETALING JAYA (Oct 19): EMKAY group founder and executive chairman Tan Sri Mustapha Kamal Abu Bakar wants to build affordable homes priced at RM70,000 with built-up size of at least 600 sq ft located in Kuala Lumpur city. He believes this is possible through a cross subsidy concept, he said during a media briefing to commemorate the group's 35th anniversary.
"For example, in a 100-acre development, 40% of the homes can be priced below RM300,000 while another 40% of homes can be at any price the developer wants, 10% are commercial units while the remaining 10% are for the units priced at RM70,000. Profit earned from the other 90% of the homes is used to subsidise the RM70,000 affordable homes.
"These houses are for those in the B40 group, especially those who are earning between RM1,800 to RM2,000. Bank Negara has come up with the median house price of RM282,000 while the market median house price is RM330,000. You need to earn at least RM3,000 to be able to finance the house. These [RM70,000] homes are for groups like teachers, the police, the firefighters and the army who have worked so hard and sacrificed for our country," he said.
He also emphasised that if such a project goes through, he would propose that the Malaysian Anti-Corruption Agency monitor the balloting of the units to make sure they go to those who deserved them.
For now, Mustapha said it is looking for a suitable site for the project. He plans to develop it in the Kuala Lumpur city area because he believes that location is important for homebuyers to be able to travel easily to work.
However, for the project to work, he stressed that collaboration and partnerships with various parties including the federal government, state government and local councils is vital.
"Aspects such as giving 100% loan borrowings to homebuyers and increasing the tenure of repayment and speedy approval of APDLs (Advertising Permit and Developer's Licence) will enable quality homes to be built within cost and delivered on time," he explained.
Meanwhile, EMKAY Group has an upcoming project worth a gross development value of RM720 million set to be launched by end of this year in Cyber 10, Cyberjaya. This 50-acre stratified residential development comprises 800 units of both landed townhouses (383 units) and high-rise (417 units) components. The overall concept is based on flexi living and the emphasis is on living harmoniously with different generations of people.
Inspired by traditional ‘Malay’ architecture, the design also aims to offer functional and practical spaces. Over the next few years, there will be some RM2 billion of on-going projects to fuel the group, said Mustapha.