RM48b economic spillover from SPNB housing project
01/07/2003 NST

SYARIKAT Perumahan Negara Bhd (SPNB)'s five-years affordable housing project is expected to generate spin-off effect worth RM4,8billion, said Second Finance Ministry Datuk Dr Jamaludin Jarjis.

As one of the measures announced under May's economic package, SPNB a wholly-owned subsidiary of Ministry of Finance Inc, will build 150,000 units of low and medium-cost houses until 2008 with an estimated projects cost of RM6bilion.

"For every RM1 that is put into the housing project we expect the economy to generate RM8 from related activities Jamaludin told reporters at SPNB headquarters in Kuala Lumpur yesterday.
 
Some 37,000 units with an average cost of RM35,000 each are expected to be completed by the end of the year including l0,000 already under construction. At least per cent of 150,000 units will be built with in the Klang Valley, said Jalaludin.

Meanwhile SPNB managing director Mohd Zaihan Mohd Zairi said the company is getting RM1 billion funding to handle the schemes under the national housing policys. This includes RM500 million loans from the civil servants pension fund Kumpulan Wang Amanah Pencen and RM500 million from the Ministry of Finances's loans and grants.

Apart from the affordable housing scheme, SPNB will also buy completed, cost houses at a discount of 20 percent or more and allocate them under a hire purchase scheme, in its bid to reduce supply overhang and meet demand simultaneously.

Under the scheme ,the applicants will pay rental of RM50 a month and have the option to purchase the unit after three years. Some 4,400 houses costing 47,000 and below have been identified, and will be offered to ex-army and police officers, widows of government servants or single mothers with household incomes of less than RMl,000.

Existing owners of low-cost, houses are also allowed to sell their units provided they were purchased five years ago, to al-low them to own more comfortable houses in line with the increase in household incomes.

SPNB will also allocate RM300 million to take over abandoned housing project all over the country. As at the end of last year, there were 97 abandoned projects identified for revival valued at roughlyRM3.2 billion.

Furthermore, the company has also been given the task to upgrade and refurbish existing government flats aged five years and above. SPNB will appoint class F contractors to undertake repainting and landscaping and fencing activities, among others.

It will be given a RM200million grant by the Ministry of Finance to implement this.