S'gor MB: Forget about RM25,000 homes

03/10/2001 The Star

SQUATTERS and former estate workers in Selangor should forget about holding out for low-cost houses at RM25,000 each or below, said Selangor Mentri Besar Datuk Seri Dr Khir Mohd Toyo.

''Many representatives of these groups and even non-governmental organisations had come to see me about housing for the squatters.

''My advice to them is the same, prices of low-cost houses in the state are not going to be lower than RM35,000.

''Therefore, take the offer instead of holding out for a lower price,'' he said. Dr Mohd Khir said he realised that some of the squatters had been promised low-cost houses at RM25,000 each by developers years ago.

''But the situation has changed. Years ago, when times were good, the developers could use cross-subsidy to help reduce the prices of low-cost houses.

''They could sell the shoplots or shopping malls at good rates and use the money to subsidise the sale of low-cost houses at RM25,000 each,'' said Dr Khir after opening the Selangor People’s Progressive Party of Malaysia (PPP) convention.

Also present were Selangor Umno liasion committee chief Tan Sri Muhammad Muhammad Taib, PPP president Datuk M. Kayveas and Selangor MCA secretary Datuk Ei Kim Hock.

Dr Mohd Khir said developers were having a hard time selling even prime properties and the cross-subsidy method did not work anymore.

He added some developers would rather go to court and take their chances there instead of selling the low-cost houses at RM25,000 because the loss was just too great to bear.

''This is a reality we have to accept. Land is becoming scarce in Selangor and pushing up the prices of houses.

''I hope the estate workers will understand this and take the offer of low-cost houses at around RM35,000,'' he said.

Dr Khir added the state government would continue to work out deals with the relevant agencies, such as banks and developers, to ensure squatters and displaced estate workers could afford to buy the low-cost houses.

Among the packages offered were the RM1 deposit, the minimum monthly rent and fast approval of loans.

Later, Dr Khir visited Bandar Klang state assemblyman Teng Chang Khim at the Tengku Ampuan Rahimah hospital.

Teng, who is bedridden, said he felt extreme pain on his spine and also suffered from a hurt collar bone following an accident early Saturday morning at KM128.4 Yong Peng-Pagoh.

Teng, also the DAP Youth chairman, and two other party members were travelling along the North-South Expressway when their car was hit by a motor van that had swerved into their way after a burst tyre.