Penang Home Hire-Purchase Scheme
Burdensome
24/03/2005 Bernama
Special Report By Siti Aishah Mohamad
PENANG, March 24 (Bernama) -- The hire-purchase concept introduced by the
Penang government to give an opportunity for the low-income group to own
houses through public housing projects has been a burden to the
government.
This is because not only the government has to provide a huge subsidy for
the house maintenance, but also has to bear non-payment of rentals and
maintenance charges which have swelled to millions of ringgit in arrears.
The state government since the First Malaysia Plan had built 39 public
housing projects under which 15,000 houses were built state-wide.
Among them are Taman Free School, Taman Tun Sardon and Rifle Range in
Georgetown; Taman Tun Dr Awang in Bagan Ajam, Desa Jawi in Jawi and the
Southwest District Housing Plan in Balik Pulau.
The problem arises when tenants refuse to pay the rent and maintenance fee
which totalled RM8.3 million in arrears.
This situation prompted the state government to discontinue the
hire-purchase concept which means all houses built under the programme
will be offered either for sale or rent.
State Housing Committee Chairman Syed Amerruddin Syed Ahmad said: "Public
housing schemes are built and maintained totally by the government but the
government has difficulty collecting payments. They just don't pay."
He said the 39 public low-cost housing projects were maintained by the
state government's Housing Unit which had to fork out RM1 million in
subsidy a year.
Various steps have been taken to collect the unpaid rent and maintenance
fee but none of them, including engaging lawyers, were found to be
effective as the tenants remained adamant.
"Political interference has also affected our efforts," he said.
Syed Amerruddin said the federal government also undertook low-cost public
housing projects in Kampung Besar, Tasek Gelugor, offering 429 units for
sale and in Padang Cempedak 435 units. He said the four federal government
projects were worth over RM100 million and would benefit more than 1,600
families.
In addition, he said, five public housing projects would be implemented
under the privatisation policy to build 6,000 low-and low-medium cost
houses and shops this year. The projects are expected to be completed in
five years.
Among them are in Hilir Sungai Pinang, Georgetown, where 1,129 low-and
medium-cost apartment units will be built, 1,963 low-cost houses in Ujung
Batu and 2,208 low-and low-medium cost units in Gat Lebuh Nordin.
Syed Amerruddin said the state government would also request for RM1.2
billion allocation under the Ninth Malaysian Plan to purchase a piece of
land on which 8,000 houses would be built.
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