The Sabah Housing and Urban Development Board (LPPB) has, so far, built 29,218 low-cost houses statewide and more are being constructed, the State Legislative Assembly sitting was told today.

Deputy Chief Minister II Datuk Seri Dr Joachim Gunsalam said a total of 175 low-cost houses are being built under the 12th Malaysia Plan (12MP) and they are expected to be completed in 2025.

“The development of these low-cost houses is under the state government’s agency through the house building programme on its land through the Low Income Group Housing Loan Scheme (SPPUGBR) and Long House Loan Scheme (SPRP) managed by LPPB,” he said.

He said this when answering an oral question from Datuk Raime Unggi (nominated assemblyman), who asked about effort to deal with the problem of developers reducing the construction of low-cost houses due to the increase in the cost of building materials in Sabah.

Elaborating, Joachim, also the state Local Government and Housing Minister, said the low-cost houses are priced between RM42,000 and RM50,000 per unit.

Following the increase in the cost of raw materials and the rate of house prices, the private sector is not keen on building such houses. The implementation of the low-cost housing programme depends entirely on either the state or federal government allocation,” he said.

He added that the allocation from the federal government for the implementation of the low-cost housing programme is through the People’s Housing Programme (PPR) for rent implemented by the National Housing Department (JPN); Malaysian Civil Servant Housing (PPAM) Programme; and PR1MA Corporation Malaysia (PR1MA).

He said that despite various incentives and encouragement given to housing developers to build low-cost houses, many were more inclined to build affordable, medium and high-cost houses to maximise profits.

“The government will look at the best alternative to encourage these private housing developers to be involved in low-cost public housing development programmes although it is clear that the response won’t be encouraging due to the low profitability,” he added.

Source: BERNAMA News Agency