Land Acquisition Process For MRT3 To Start Next Year, Batu Kawan Housing Project To Address Foreign Worker Issues And, More
19th December – 27th December
Transport Minister Anthony Loke revealed that the allocation for the land acquisition phase of the MRT3 project has been approved.
Meanwhile, Penang Chief Minister Chow Kon Yeow believes the RM108 million housing project for foreign workers in Batu Kawan Industrial Park 3 will help address the challenges facing the industry.
1. Land acquisition process for MRT3 to start next year
Transport Minister Anthony Loke revealed that the allocation for the land acquisition phase of the MRT3 project has been approved.
The acquisition will cover 1,012 lots, of which 842 are private or individual-owned lots, 133 government-owned and 37 are yet to be identified, reported The Sun.
MRT Corp will start the land acquisition process in stages, which will take two years, from 2024.
To minimise land acquisition costs, MRT Corp will collaborate with developers to seamlessly integrate MRT3 stations in future developments, said Loke.
The government aims for a compassionate land acquisition process to minimize social impact on the community.
“The strategy is designed to create a harmonious living experience for the community, where infrastructure and development work in tandem throughout the construction process,” said the minister.
This approach will see the integration of holistic design processes, including enhanced pedestrian pathways as well as facilities for people with disabilities.
2. Batu Kawan housing project to address foreign worker issues
Penang Chief Minister Chow Kon Yeow believes the RM108 million housing project for foreign workers in Batu Kawan Industrial Park 3 will help address the challenges facing the industry.
A project between Penang Development Corporation (PDC) and MY EG Lodging Sdn Bhd, the foreign workers housing will resolve issues like housing foreign workers within residential areas, the influx of illegal workers and property price drops due to the area being used as migrant workers’ housing, reported The Star.
To be nestled on a 3.39ha site, the workers village will have 445 hostels spread across eight five-storey blocks. It is expected to house around 8,000 workers.
The first phase of the project is slated for completion in 2023 and could accommodate around 4,000 workers. Phase two, on the other hand, is set for completion in 2029.
“This is part of four foreign workers’ housing projects which will be able to house 25,000 workers in total,” said PDC CEO Datuk Aziz Bakar.
3. Revised MM2H a much needed boost for property sector
The revised Malaysia My Second Home (MM2H) programme, aimed at attracting a bigger pool of foreigners via adjusted eligibility criteria and financial requirements, is seen as a potential boon to the property sector.
HLIB Research noted that the relaxed MM2H programme is a positive development as it provides better clarity to developers, potentially leading to increased launches in the high-end residential market, reported The Star.
It also expects the programme to have a spillover economic benefits to healthcare and tourism sectors. In particular, the research house expects the programme to benefit Sunway via its senior living, hospitality and healthcare businesses.
Professor Geoffrey Williams from Malaysia University of Science and Technology acknowledged that the revised programme is better than its previous version. However, he noted that it is still more focused on revenue generation for the Immigration Department than on encouraging foreigners to reside in Malaysia.
“It is still relatively unfriendly, with a bad feeling for foreigners, and would only be attractive for tax avoidance to provide multiple residency for high tax payers to avoid paying tax at all in any single country,” he said.
4. Sepang council to review rental rates
Sepang Municipal Council (MPSepang) plans to review the rental rates for its business premises and aims to arrive at the new rates by the middle of 2024.
This comes as the council’s rates were significantly lower compared to other local authorities, said Datuk Abd Hamid Hussain, President of MPSepang.
He pointed that the last time the rental rates were reviewed was in 2003, reported The Star.
Abd Hamid shared that the council spends about RM1.3 million per year to maintain the premises, but the rental collection stands at only RM700,000.
He also revealed plans to provide a one-year extension to tenants who have surpassed the 10-year maximum rental period.
Notably, there are 102 such tenants who said they face challenges finding affordable commercial spaces.
“Older tenants need to make way for new entrepreneurs…As such, we have structured the rental fee to be low in the first two years, but it will increase from the third to tenth year,” explained Abd Hamid.
He noted that the one-year extension will be subject to the approval of a special committee.
5. REHDA, stakeholders disappointed with Budget 2024
Key stakeholders in Malaysia’s property sector, including the Real Estate and Housing Developers Association (REHDA), were disappointed when the 2024 Budget was tabled by Prime Minister Datuk Seri Anwar Ibrahim, who also serves as Finance Minister, in October.
This comes as only a few of their proposals were incorporated in the 2024 Budget and that the property sector was not among the government’s top priority, reported the New Straits Times.
Notably, REHDA along with other stakeholders, submitted their wish lists for 2024 Budget, which included reviving the Home Ownership Campaign (HOC), incentivising developers that incorporate smart technologies in their project, promoting IBS adoption, offering tax deductions and grants, encouraging eco-friendly practices and reducing compliance costs.
The RM393.8 billion budget allocation for 2024, the largest ever in Malaysia’s history, focused on public housing, stamp duty changes, the New Industrial Master Plan (NIMP) 2030, expanding the Housing Credit Guarantee Scheme and addressing abandoned projects.
The budget also outlined changes to the en bloc sales requirements, infrastructure projects, Visit Malaysia Year 2026 and revisions to the Malaysia My Second Home (MM2H) programme.
The service tax was also raised to 2% in 2024, excluding food and telecommunications.
6. OIB to launch Myra Dahlia housing project next year
Oriental Interest Bhd (OIB) Group is set to launch Myra Dahlia, a Rumah Selangorku (RSKU) affordable housing and PPAM (Malaysia Civil Servants Housing Programme) government housing project in Taman Dahlia, Salak Tinggi, Selangor in 2024.
Nestled on a 2.76-acre site, the RM141.51 million project will feature 48 Rumah Selangorku units, measuring 600 sq ft each, and 432 PPAM units, spanning 900 sq ft each. Prices for the units start at RM299,800, reported the New Straits Times.
Beh Suan Sim, Chief Marketing Officer of OIB, said Myra Dahlia, which is set to be completed in November 2027, is more than just a housing opportunity.
“It’s a catalyst for sustainable family development. We recognise the struggles of young couples balancing work and parenthood. This project aims to offer quality living spaces, fostering environments where parents can spend quality time with their children and build lasting memories right at home. This foundation enables families to grow and prosper for years to come,” said Beh.
7. Felda explores new models to address housing issues facing new generation
The Federal Land Development Authority (Felda) is actively exploring innovative solutions to address the housing issues facing the new generation within the settlement schemes.
Proposed solutions include building stratified housing outside Felda areas as well as large-scale housing developments compared to individual lots within Felda areas, said Felda Chairman Datuk Seri Ahmad Shabery Cheek.
“The total population of Felda has exceeded two million, requiring a large-scale approach and a change of mindset, especially in the new generation, by providing them with living spaces that are more compact with various levels and so forth,” he said.
He noted that this approach will save costs and land, enabling generation of economic growth within the area, reported Bernama.
While the proposed housing model has been presented to Prime Minister Datuk Seri Anwar Ibrahim, Ahmad Shabery said the cooperation of relevant ministries is needed for it to materialise.
He pointed that Felda can provide land, while the government can help with the financing concerns facing settlers who may not have payslips.
The target is to build 20,000 to 30,000 housing units nationwide via the new housing model.
