Development of affordable housing provision in the case of low cost housing through public private partnership (PPPS) in Malaysia

Abstract

To ensure social financial stability and to promote national development, housing provision for all in any country is very vital because housing is a greatest worry for all citizens in every corner of the world .The housing policy within Malaysia is towards provide Malaysians of all salary levels, especially the lowincome categories, availability to affordable, adequate and quality shelter .The PPPs programme between the state and the private sector has identified as a satisfactory achievement around the world. Consequently, public-private partnership in housing provision has been embraced as a method of addressing the housing affordability issues. This research aims to promote of innovative partnerships between the Government and Private Developers for provision of affordable housing in Malaysia and to identify the weakness, issues and problems that exist in carrying out the process. Information found through the literature review and structured interview undertaken. the study showed that to solving the issues and obtain an improved partnership between the government and private developer in Malaysia, the government by set up a one-stop centre and delete and minimize unnecessary steps can speed up the process of plan approval in four to six months instead of the current practice of three to five years, the government play the role in providing free land for the private developer as most important incentive that can decrease about 10-20% of total development cost .under this partnership, government by making a great and high cooperation with material suppliers can decrease the price of material with constant supply of materials like steel, cement and concrete on the lower priced. To sell the low cost house for RM 42, 000 as the government prescribed, a third (1/3) of the development cost will be financed by the government, Under this partnership private developer will construct and manage 80-100% of low cost houses and take its operating responsibility to complete and transfer the project to government based on agreed time The private developer have to provide a progress report and the frequency of reporting the progress of the projects will increase from two times to four times a year that can be an effective for preventing housing abandonment.