Budget 2020: Developers should focus on affordable housing, says PAM

Budget 2020: Developers should focus on affordable housing, says PAM

KUALA LUMPUR: Developers should never forget their duty in building affordable housing for the B40 and M40 segments despite the government’s move to reduce the price threshold for foreign buyers from RM 1 million to RM 600,000 to buy houses here, said the Malaysian Institute of Architects (PAM).

“We also hope this will not detract developers from their focus on building affordable housing for our B40 and M40 segments,” said PAM president Lilian Tay in a statement.

Yesterday, Finance Minister Lim Guan Eng announced via Budget 2020 that the government was reducing the threshold to reduce the overhang of condominiums, which is amounting to RM8.3 billion.  

On Budget 2020, Tay commended the extension of Cagamas and Bank Simpanan Nasional’s (BSN) youth housing scheme for another two years, to assist the younger generation to buy their first homes.

‘This will encourage developers to rethink the strategy and work with the government to build more affordable homes.

“We urge that BSN extend a similar first-home ownership incentive not just to youth but to single-income households in the affordable housing segment,” she said.

Tay added that they also look forward to the many new or revived development projects, such as the East Coast Rail Link (ECRL), Bandar Malaysia township, airports upgrade, Carey Island and Port Klang development, new sports facilities, among others.

“We hope the procurement for these important national projects will be through an open design competition process that PAM can help facilitate, to open up opportunities for our many smaller and large Malaysian architect firms to further upskill and build capacity,” she said.

Many of these new projects are valuable opportunities to create new national icons to showcase and promote Malaysian talent and design professionals, said Tay.

“The creative economy must be engendered locally besides the proposed customised incentives of RM1 billion annually for five years, to bring in Fortune 500 and “global unicorns” to spearhead the creative economy,” she added.