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PPP could be solutions for unbuilt low-cost housing in Johor

JOHOR (Jan 12): It is hoped that the public-private partnership (PPP) programme will be able to solve the unbuilt low-cost housing issue in Johor, says Real Estate and Housing Developers Association (Rehda) in a report by The Star.

Wong Boon Lang, chairman of Rehda Johor has stated that the state government has tried various approaches such as the enforcement of compliance and delivery of low-cost houses through the Transitional Programme to tackle the issue in the past but were not able to procure the intended result. 

According to The Star, Wong had stated that the programme could be beneficial for relevant parties as developers do not have to pay a penalty fee to the state government from not building any units on the designated and approved land for low-cost housing. 

He added that the developers could continue with the rest of the approved development project with no restrictions after surrendering the land. 

Under the Johor Housing Policy, the penalty fee incurred for developers is RM40,000 for each unbuilt low-cost house. 

There are 153,000 unbuilt low-cost housing units on 2,003.19 ha (4950 acres) of land in Johor, as Wong added that the programme is only applicable to the unbuilt 153,000 units. 

Although not mandatory, Wong suggested that developers who have not commenced the construction of the approved low-cost housing should consider the offer by the state government and study the merits of the programme. 

The PPP project was launched by Johor Menteri Besar Datuk Hasni Mohammad on Nov 27, 2021 while Rehda had also signed a memorandum of understanding with the state government regarding the programme. 

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