Excerpt From 2012 PM Najib Budget on ‘Abandoned Housing Projects/Failed Residential Projects’ (Business Times News)

The 2012 Budget Speech

From http://www.btimes.com.my/articles/20111007181122/Article/ (accessed on 10 October 2011)

“Mr. Speaker Sir,

I beg to move the Bill intituled “An Act to apply a sum from the Consolidated Fund for the service of the year 2012 and to appropriate that sum for the service of that year” be read a second time.

I begin the 2012 Budget speech by reciting the holy kalimah Bismillahirrahmanirrahim.

1. Alhamdulillah, Praise be to the Almighty for His blessings on the people and our beloved country. As citizens with different faiths we have more reasons to be grateful to the Almighty.

2. Malaysia is a successful nation. In a short period, we have changed the face of the nation from being an agricultural and low income nation to a modern industrial upper middle income country. This success did not come easy. It was a result of hard work between the Government and the people who toiled together and held firmly to the principle of systematic planning and effective implementation. This is the blessing to a country with a responsible Government since independence. This is not a Government that makes empty promises but a responsible Government which always place the interest of the people above all and carries out policies for the benefit of the people and well-being of the nation.

17. With Almighty’s blessing, the 2012 Budget is formulated with the theme “National Transformation Policy: Welfare for the Rakyat, Well-Being of the Nation” and focus on five main areas.

79. Most houses are sold before construction starts and buyers bear risks of projects being delayed or abandoned. To protect buyers, the Government will encourage the construction of more houses using the build then sell concept. For this purpose, Islamic banks have agreed to provide shariah-compliant financing and undertake construction risks. Instalments only commence after the house is completed. This scheme will be implemented for houses costing RM600,000 and below.

80. There are many among the rakyat, especially the lower income group, who have yet to own houses. Therefore, the Government will continue to implement the Program Perumahan Rakyat (PPR) by building 75,000 units of affordable houses nationwide under the 10MP. In 2012, RM443 million is allocated for the construction of 8,000 units for sale and 7,000 units to be rented.

81. The Rumah Mesra Rakyat (RMR) programme, managed by Syarikat Perumahan Negara Berhad (SPNB), will be continued to help the low-income group to own decent houses. Under this programme, those with land but without a house or live in dilapidated houses are eligible for financing to build a house. SPNB will build 10,000 units in 2012. Each house costing RM65,000 will be sold for RM45,000 and the Government will subsidise RM20,000. For this, the Government will allocate RM200 million.

82. Apart from this, through the Abandoned Housing Rehabilitation Programme, the Government successfully rehabilitated and obtained the Certificate of Fitness (CF) for 82 projects involving more than 15,000 units. The Government will continue this noble effort with an allocation of RM63 million in 2012 to rehabilitate 1,270 abandoned houses. The Government will also allocate RM40 million for restoration and maintenance of public and private low-cost housing.

117. The 2012 Budget will continue with the tradition of placing the welfare of the rakyat and the well-being of the nation as our top priority. What is important is the creation of a brighter future for every Malaysian child, a future full of hope and prosperity, not fear or hatred. Over the last 30 months, the Government charted a clear path for our beloved nation to achieve the national vision. It’s not only about unity in diversity or improving public service delivery system or restructuring the economy but includes the Political Transformation Programme which will create a new path for Malaysia’s next phase of development where differences of ideas will be celebrated and not lead to never ending conflicts and where no individuals will be punished or side-lined for ideological differences. In an environment of global uncertainties, the strong support of the rakyat is mandatory for us to become a developed and prosper as a nation.
Mr. Speaker Sir,
I beg to propose.“ (emphasis added).

One response to “Excerpt From 2012 PM Najib Budget on ‘Abandoned Housing Projects/Failed Residential Projects’ (Business Times News)

  1. Bailing out abandoned housing projects may not be the best solution in dealing with its problems in Malaysia.

    Malaysian government should seriously implement the provisions under the Housing Development (control & licensing) Act 1965 (Act 118) and its regulations including punishing the defaulting culprit developers, the lawyers, architects, engineers, quantify surveyors, bankers and contractors.

    Further the Malaysian government should impose ‘full build then sell’ system of housing delivery coupled with the requirement that the applicant developers should possess housing development insurance.

    If the above cannot be done, do not hope that the abandoned housing projects malaise will be over and stamped out.

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