PENANG will come up with a formula to determine a reasonable contribution of amenities by developers in new housing schemes. 

Chief Minister Tan Sri Dr Koh Tsu Koon said developers had to provide amenities due to the state’s limited financial resources. 

“I agree there is a difference between constructing 700 units of double-storey houses and 700 low-cost units as the profit margins are different,” he said at the Real Estate and Housing Developers Association (Rehda) Penang chapter 32nd anniversary dinner on Wednesday night. 

Present was Rehda national president Ng Seing Liong. 

In his speech earlier, Rehda Penang chapter chairman Datuk Jerry Chan said it was unfair to compel developers to build a school if they were building more than 700 units, regardless of whether the units were double-storey terrace houses or low-cost houses. 

He said the responsibility of providing the amenities should not be placed solely on developers. 

“We hope the state government can reduce our burden.  

“Just because we require approval of our plans from the local authorities, it does not mean that all sorts of terms can be imposed on us. 

“We have to provide amenities such as hawker centres, surau, garbage collection centres and community halls.  

“We also have to subsidise the construction of low-cost and low medium-cost units,” Chan added. 

“The density guidelines, low-cost and low medium-cost housing policies and pricing need to be revised every five years,” he said. 

He also questioned the requirement for back lanes that were no longer required for link and terrace units in the Klang Valley and in Singapore. 

“We no longer need to carry away night soil. Furthermore, rubbish collection is done from the front of the houses,” he said. 

“The requirement deprives the house owner of additional garden space at the back of their house,” he said. 

Chan also asked that developers be allowed to develop land in rural areas.