Two Bodies Object To Move To Raise Price Of Low-cost Houses
22/08/2007 Bernama

KUALA LUMPUR, Aug 22 (Bernama) -- Two associations today stated their objection to a proposal by the Real Estate and Housing Developers Association (REHDA) to raise the price of low-cost houses from the current RM42,000 to RM60,000.

The Federation of Malaysian Consumers Associations (Fomca) and the National House Buyers Association (HBA) felt that the move would only burden the low-income people even more.

Fomca President Datuk N. Marimuthu asked why the issue was being raised now.

"Although the salary of government employees has gone up, it was not the basis for raising the price of low-cost houses. I hope the government will warn REHDA not to raise the matter again," he told Bernama.

HBA Secretary-General Chang Kim Loong said the new price proposed by REHDA was too high and beyond the reach of the low-income people.

"REHDA should in fact be considering its social responsibility," he said.

A news report today had quoted REHDA Deputy President Datuk Michael Yam as asking the government to consider a proposal to raise the price of low-cost houses from RM42,000 to RM60,000 owing to an increase in the cost of building materials.

Yam said developers found it hard to absorb the higher costs and added that the request to raise the price was reasonable as it had remained at that level since 1998.

-- BERNAMA