Sabah low-cost homes may cost more soon

daily.expresss 14/12/2005

Kota Kinabalu: The Sabah Housing and Town Development Authority (SHTDA) has been urged to study the possibility of raising the current price of low-cost housing in the State.

Local Government and Housing Minister, Datuk Hajiji Mohd Noor said at the current price of between RM36,000 and RM42,000 no developer would be interested to take up the offer to build such houses.

He noted that similar housing in Sarawak built by Syarikat Perumahan Nasional Bhd (SPNB) cost RM60,000 each.

"Hence, I am requesting the SHTDA to conduct a study to raise the price of low-cost housing since there are no developers willing to cooperate with us, whereas the need for such housing is very high in Sabah," he said.

Speaking at the SHTDA annual luncheon at Shangri-La's Tanjung Aru Resort, here, he said under the Eighth Malaysia Plan (8MP), the Government had targeted 18,000 low-cost housing.

However, only about 50 per cent of the target has been accomplished.

Hajiji said lack of interest among developers to undertake joint ventures with the SHTDA is probably one reason why the Government managed to only build that much.

In addition, the increasing price of construction materials has also made it difficult for developers to cope with demand. "Maybe this is one reason why we could not achieve our target under the 8MP."

He said the SHTDA would be studying the matter and later submit a proposal to his ministry following which he would bring the matter for discussion at Cabinet level.

On other developments, Hajiji said the staff, officers and board of directors in the organisation should work more diligently.

He said only then, the organisation would become more dynamic and productive in line with the government's objective for all its agencies and departments to be efficient. "The role of the SHTDA is pertinent in terms of developing and providing housing to the people in order to reduce the squatter problem.

"As long as the population increases, housing needs would also increase," he said, adding it is for that reason that the housing industry in Sabah is progressing very well. He commended the SHTDA for its encouraging performance over the past few years.

According to SHTDA General Manager PS Wong, the organisation recorded a profit of RM2.5 million based on non-audited accounts for 2005.

She said the organisation expects to notch a revenue of RM3 million next year.

The government agency also managed to pay dividends of about RM4.7 million to the government, which shows that the agency is on the right track.

Meanwhile, Hajiji said he does not want to see housing projects being abandoned like what is happening in the peninsula.

It was learnt that about 200 housing projects in West Malaysia have been abandoned.

Also present were Local Government and Housing Assistant Minister Edward Yong Oui Fah, SHTDA Chairman Datuk Rubin Balang and Likas Assemblyman, Liew Teck Chan.