Khir's housing plan under fire
The Star 13/4/2004

PETALING JAVA: The Selangor government's plan to allow the rich to buy low-cost houses to rent them out to the poor has come under fire from unions and consumer groups while real, estate agents welcome the programme.

MTUC president Zainal Rampak said low-cost houses were meant for the lower income group and not for the rich.

Allowing the wealthy to buy such houses and rent them out to the poor would only make the high-income earners richer, he said yesterday.

On Sunday, Selangor Mentri Besar Datuk Seri Dr Mohamad Khir Toyo announced that the Government would amend several rules on the purchase of low-cost houses for the rich to help the poor.

CAP president S.M. Mohamed ldris said the Government should reduce the price of low-cost houses and provide easier financing to make them more affordable.

National House Buyer Association secretary-general Chang Kim Loong said the Government should buy the low-cost houses and rent them to the poor, with a long-term plan to direct them to own it.

"The rich buy such houses for a good return on investment and to profit from them," he said.

Urban and Housing Pioneers Federation Co-coordinator A, Sivarajan said the poor should be encouraged to have their own houses and statistics showed that they had to rent, because they could not afford to buy them.

Real Estate and Housing Developers Association corporate communication manager Rita Michaeul, in welcoming the plan, said.

"It is a step in the right direction to reduce the poverty level among Malaysians. It is the best solution for everyone to own a t house in this country".

Malaysian Institute of Estate an Agents president Khatijah Abdullah said if the poor still could not afford to buy such houses, then only the rich should be allowed to buy and rent them out.

Khatijah, however, suggested that the rich should pay a higher price for such houses.

Meanwhile in Pekan Nenas, Johor, Housing and Local Government Minister Datuk Seri Ong Ka Ting said he would study the proposal.

"The low-cost housing scheme is to help those in the lower income bracket to have affordable housing," he said yesterday after visiting his constituents to thank them for their support in the recently concluded general election.

He cautioned that there was the possibility that the rich might buy the unsold low-cost units and rent it out to the poor to make a profit.

"It's only fair for us to study the proposal first before we decide whether we approve anything or implement new policy on low-cost housing."