Housing Policy in Malaysia? Part 1

OVERVIEWOF MALAYSIA HOUSING POLICY

In many developing countries, public sector has been associated with low-cost housing for lower income groups.

Public intervention in housing markets ranges from the provision of subsidies for lowincome households to the construction of public low-cost housing for poorer households.

The provision of cheap housing as a basic social need has been emphasised in Malaysia’s social development programmes.

The public housing programmes in Malaysia falls under the social sector of the national strategy.

Housing policies can be grouped into 3 categories :

1. Before 1970
2. 1970s to 1990
3. After 1990s

Housing Policy before 1970

There are 2 housing policies before 1970 (before independence and the post-independence):

The Colonial Housing Policy (1948-1960)

Before independence, the concept of public housing was associated with the

provision of institutional quarters. The only programme providing housing for the Malaysian people was the resettlement of Chinese (New Villages) during

emergency period.

It was a part of British’s administration strategy to weaken the support for communist insurgency.

Hard core of the housing problems during this time such as houses which are

inadequate both with regard to accommodation and conveniences; and houses which are suitable in themselves but have become a danger to public health due to gross overcrowding.

Hence, a committee had been setup in December 1946 to consider and report the housing problem in Malaya.

Two types of housing which needed attention:

1. Squatter type dwelling (hovels)
2. Overcrowded cubicles

The committee's report recommended the establishment of a Housing Trust with

powers to lease or purchase and hold land and buildings, to build houses, shops and shophouses, and to sell, lease or let land and buildings. The Housing Trust is empowered to acquire land in accordance with existing law, and to borrow and raise capital or make loans.

It also given the power to require the owners of vacant land in appropriate cases to develop them, or in default to pay special 'development rate', which would be accrued to the Trust.

Policy On Home-Owning Democracy (1961-1970)

The post-Independence concept of public housing advanced from merely

providing housing for government officials to the concept of home-owning democracy.

Second Five-Year Plan (1961-1965) was concerned with the provision of cheap housing as a basic social need. Rural public low-cost housing programs implemented by the Housing Trust were targeted specifically towards rural poor households with incomes of below RM300 a month.

The First Malaysia Plan (1966-70) stressed the role of the government in

providing:

• low-cost housing as 'one of the major efforts of the government to promote the

welfare of the lower income groups

• the lower income groups were given special attention because 'the incomes of

this economically weak section of the community are too low to encourage

private developers to enter this field of housing development'.

• the services of the Housing Trust were provided to state governments on

generous terms for undertaking low-cost housing projects.

• the need to tackle the squatter problem in larger urban areas. New construction techniques intended to speed up construction and to lower costs compared with the conventional method.