Will a Madani credit system work better?
One of the biggest barriers to building affordable housing in urban areas is the high cost of land. In Kuala Lumpur (KL), for example, land acquisition averages about RM570 per sq ft (psf). Combined with construction costs, a development could easily exceed the government's capped selling prices for Residensi Madani units at less than RM300 psf.
Coupled with development costs, developers building these price-controlled homes inevitably suffer financial losses. The only current remedy is cross-subsidisation from free-market housing, which drives up prices elsewhere, defeating the purpose of affordable housing in the first place.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
16 hours ago
- The Sun
Govt tackles cost of living with Rahmah Sales and wage hikes
PUTRAJAYA: The government is adopting a two-pronged approach to tackle the rising cost of living, namely by expanding the MADANI Rahmah Sales Programme (PJRM) and raising the minimum income floor to boost disposable income. Deputy Minister of Domestic Trade and Cost of Living Datuk Dr Fuziah Salleh said the PJRM initiative allows the public to purchase essential goods at more affordable prices through discounts, ultimately helping them save more. 'We face challenges in controlling global market prices. For instance, when we import goods like onions, which we rely on 100 per cent from external sources, prices are dictated by the international market. Although we can't control global prices, the government intervenes by implementing initiatives such as Rahmah Sales to offer discounts. 'This means, when people have limited disposable income, programmes like Rahmah Sales help make essential goods more accessible. Without such intervention, how can the people make the most of their remaining income?' she said in an exclusive interview with Bernama recently. She emphasised that the government's two-pronged approach, which focuses on enhancing disposable income and regulating the prices of essential goods, is a crucial step toward alleviating financial pressures on the people. 'The government is helping by increasing the income floor, which means improving people's income and ensuring that their disposable income rises. At the same time, we are controlling the prices of essential goods,' she said. 'Therefore, if anyone suggests that only one approach is sufficient, that's inaccurate. The government has to, and is implementing both simultaneously,' she said. Fuziah said, for example, the government has taken various steps to increase the people's income floor, including raising the minimum wage, adjusting the salaries of civil servants and setting the minimum wage rate, efforts aimed at ensuring people have more spending power. She also highlighted the government's commitment to expanding PJRM, noting that the allocation has been doubled from RM300 million to RM600 million this year, the programme can be held more frequently and expanded to cover all 600 state constituencies (DUN) nationwide.. 'With RM300 million, Rahmah Sales could be held twice a month in each state constituency. With the increased allocation, the programme can now be held four times a month, or once every week, in each DUN. 'For example, if a parliamentary constituency has three DUNs, Rahmah Sales can rotate locations weekly. If someone misses the sale this week, they can visit another nearby DUN the following week. We ensure that these sales are always available and easily accessible. It has become one of the most popular initiatives among the public,' she said. Meanwhile, regarding the proposal to expand the list of Basic Rahmah Contribution Assistance (SARA) items, Fuziah explained that the initiative is under the Ministry of Finance (MOF), while the KPDN always conveys the feedback received from the people to the relevant parties. 'MOF is listening and will continue to add to the SKU (stock keeping unit) list. I saw it myself when I went to the supermarket where even women's essentials have various brands included, and so are instant noodles,' she said. She said that improving the list of SARA items is a continuous process that is carried out based on the needs and feedback of consumers. 'The government is always listening to the people's needs, and improvements will be made accordingly,' she added. Fuziah also reaffirmed the government's commitment to maintaining a fair and transparent business development ecosystem, free from cartel interference. She said this is being pursued through various mechanisms under the ministry's supervision, including the Malaysian Competition Commission (MyCC), oversight of profiteering activities, and supply chain management. 'We monitor all aspects of the market. We have price inspectors, enforcement teams, and several legislative instruments in place to ensure fairness and transparency,' she said. The ministry, she said, also conducts routine price monitoring through the Price Catcher application and regular inspections by enforcement officers. 'These efforts ensure that business development in the country is well-regulated and equitable for all parties,' she said. - Bernama
The Star
19 hours ago
- The Star
Tariff cuts for 11,000 US products
Sharing updates: Tengku Zafrul speaking to the media during a press conference in Kuala Lumpur. — MUHAMAD SHAHRIL ROSLI/The Star New trade terms take effect on Aug 8, covering industrial and agricultural goods KUALA LUMPUR: More than 11,000 US products coming into Malaysia from Aug 8 will have zero or reduced tariffs, Tengku Datuk Seri Zafrul Abdul Aziz announced. The Investment, Trade and Industry Minister said that this was the concession requested by the United States during protracted tariff negotiations which began in April and concluded yesterday. 'The US list involves 11,260 tariff lines. Of this, a total of 6,911 products are mainly industrial manufacturing products, which made up a large portion of the list. 'Another 191 products fall under the agricultural tariff line. 'This means that about 61% of imported products under the list will have zero tariff,' he told a press conference. He added that about 39% of the US products under the list saw their tariffs reduced. 'This means we had made a comprehensive offer that covers 98.4% of all tariff lines to eliminate or reduce tariffs,' he added. 'The reduction of tariff is a win-win outcome for both Malaysia and the United States, demonstrating a strong and constructive bilateral Malaysia-US relationship, built over the last 68 years,' Tengku Zafrul said. The United States had initially requested zero or reduced tariffs on a total of 11,444 US products during negotiations. He noted that 6,567 US products were already on the zero tariff list which was agreed on during previous negotiations. Among the US agriculture products that will have zero tariffs, he said, include dairy, poultry, fruits and sanitary products. He added that the 19% tariffs imposed on Malaysian exports to the United States will also be enforced on Aug 8. On Malaysian semiconductors and pharmaceutical exports to the United States, Tengku Zafrul said that they are exempted from the 19% tariffs imposed by the United States. 'At the moment, semiconductors and pharmaceutical products from Malaysia which are exported to the United States are exempted from tariffs. 'However, this is subject to Section 323 of the US Trade Expansion Act. 'The US Department of Trade and Commerce will still have to decide if this is fair,' he said, adding that the final decision will be known by the end of the year. Tengku Zafrul said that the conclusion of the US tariff negotiations will help provide some certainty to exporters and industries in Malaysia. He said that he will be issuing a joint statement with US Trade Representative ambassador Jamieson Greer on the tariffs soon.
The Star
19 hours ago
- The Star
Economic transformation needs fair, inclusive reforms
Upskilling: Job-specific training programmes should be developed to help local job-seekers find industry placements. — Filepic/The Star THE MCA Economic and SMEs Affairs Committee welcomes the tabling of the 13th Malaysia Plan (2026-2030) by Prime Minister Datuk Seri Anwar Ibrahim on Thursday, in particular, the emphasis on fairness, sustainability, and inclusivity. These are the three core principles for Malaysia's future development and are exactly the type of reform our current economy and society urgently need. Only by moving towards a development path that is genuinely fair and professionally driven can our economy and society reach their full potential.
