KPKT to collaborate with China companies to develop affordable housing using IBS technology
Housing prices have increased drastically over the past decade, making it challenging for the public to purchase a place of their own.
Malaysia’s Housing and Local Government Ministry (KPKT) is employing the help of Industrialized Building System (IBS) technology in hopes of developing affordable housing for the masses.
An Industrialized Building System (IBS) refers to a technique of construction whereby components are manufactured in a controlled environment either onsite or offsite, and transported for assembly into a structure with minimal additional site works.
KPKT has signed a Memorandum of Understanding with eight companies from China on 26th April 2019.
The said agreement is for future potential foreign direct investment and technology knowledge transfer towards Malaysia’s affordable housing development.
KPKT minister Zuraida Kamaruddin said the MoU was signed during her visit with Prime Minister Tun Dr Mahathir Mohamad to Beijing, China for the Belt and Road Forum.
There are eight Chinese companies, six are financial institutions and two are construction companies.
The MoU is expected to kick start collaboration between the Chinese companies and the Malaysian housing development sector to improve the development model of affordable housing, and to ease financing difficulties faced by B40 and M40 homebuyers.
Zuraida noted that some of the China companies had expressed an interest in providing funding or housing loans for potential home buyers who desire to purchase a house under the Rent-to-Own (RTO) scheme.
Other companies will collaborate with local developers to bring in the Industrialized Building System (IBS) technology and work together with local developers to build affordable housing.
“These foreign companies must partner with local firms in rolling out the housing projects, otherwise the application will not be approved,” said Zuraida during the press conference after the launch of the National Affordable Housing Policy.
The National Affordable Housing Policy or Dasar Perumahan Mampu Milik (DRMM) is a sub policy under the National Housing Policy which was introduced back in January this year. The policy outlines the standards, key specifications and selling price for affordable homes.
Zuraida explained that the pricing for affordable homes will not exceed RM300, 000 but the exact selling price will differ across states based on the household average income and construction costs.
She further added that the use of IBS in affordable housing development is imperative to reduce the construction costs and reliance on labor force, which will in turn bring down the property prices.
DRMM also serves as a guide for the development of safe affordable housing. The policy also classifies the key features of high rise and landed affordable housing categories such as the built-up area, quality homes standard, development technology and public amenities.
Besides that, Zuraida emphasized that the government is on track to achieving its target in providing one million affordable homes to Malaysians.
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