By Hakim Hassan hakim@thestar.com.my

WITH the proposal to rebrand 1Malaysia Housing Scheme (PR1MA) and streamline the public housing schemes looming on the horizon, it is worth looking into this high-profile schemes that have attracted attention since its launch.

The idea looked good on paper. To overcome the housing issue faced by the rakyat, the previous government initiated the PR1MA to create houses that are relatively cheaper than the market.

According to PR1MA, in 2012, a total of 1.04mil households categorised as part of the M40 were not able to own a home with states like Wilayah Persekutuan (146,486), Selangor (303,604) and Johor (122,433) being the largest in the country.

Two years later, the number grew to 1.18mil, an increase of 13% which showed that the initiative is crucial in providing housing for the rakyat, especially from that income group.

The PR1MA mandate was initiated by then Prime Minister Datuk Seri Najib Razak in 2013 after the PR1MA act was passed the year before.

As part of the mandate, the agency was tasked with building 500,000 homes which would require 5,060 hectares (98 units per acre) to construct. The houses built should also be 20% cheaper than the market price which is between RM100,000 and RM400,000.

Initially, it was positively received as it meant that there’s a possibility that the people would be able to own houses, especially millennials who are joining the workforce and also the young, budding families.

However, the reality is that although the initiative is commendable, there are facets of the housing scheme that can be improved. It is something that we have learned from our review of one of their developments in Perak.

For starters, conducting a thorough feasibility study to understand an area is more critical than just erecting buildings in non-strategic locations.

To understand what the locals think about the initiative, StarProperty.my visited one of the apartments of PR1MA@Bandar Meru, constructed in Meru, Perak. It is a residential high-rise set on top of 8.8 acres of land. The development consists of 1,011 units offered at various sizes, ranging from 959 to 1,137sq ft. The findings were not as rosy as many commented.

Although the initiative is deemed helpful in theory, much can be improved in delivering the promise to the rakyat.

According to a mortgage banker from a local bank who refused to be named, PR1MA’s high-rise in Bandar Meru Raya is deemed as too costly for the working class in the area. He also added the there are other options for the people, such as various types of houses at different prices.

He said that the price of the units offered was too expensive for a property in Ipoh.

“We received 40 applications last year, but only one is accepted,” he said, adding that only 25 out of the 1,011 units were qualified from the banks.

“That is the problem here at Ipoh where landed properties are still abundant, and then they are building apartments like this with a price of RM235,000,” he said.

Another banker also said that the price range should be RM200,000 and below. He said, “At D’Aman Residensi beside the Jelapang toll gate at PLUS Expressway, they are opening five storeys of units with the price of 145,000, and it was sold out.

“Now, they are opening 15 storeys of units with the price of 220,000, of which 50% was sold out.”

According to him, PR1MA’s development is priced starting from RM235,000. The people there cannot afford it as the average wage of the private sector workers at Meru is at RM2,000 and below.

PR1MA@Bandar Meru is situated near amenities such as Pasar Raya Besar Mydin, Aman Jaya’s Bus and Taxi Terminal as well as the Tenby International School. The development boasts features such as guarded security, a community hall and a swimming pool.

According to a press release by PR1MA, currently, more than 20,000 PR1MA homes between RM120,000 and RM350,000 are available in Perak targeting the M40 group, who earn an average household income of RM6,000.

Also according to the statement, in Perak alone, PR1MA Members of Corporation (MOC) has approved more than 20,148 homes for development. Out of this total, 4,350 units have been completed while 8,071 units are under various stage of construction.

Currently, PR1MA homes in Perak are located in Bandar Meru Raya, Sungai Raia, Tapah, Kamunting, Kampung Paloh and Kampar. According to their latest statistics, developments such as Sungai Siput, Kampar, Kg Paloh has already been completed, while the progress in Lumut was still 48% under construction.

However, according to the Department of Statistics Malaysia’s Report of Household Income and Basic Amenities Survey 2016 which was published on October last year, the median household income was at RM4006, while the average Malaysian household was at RM5,228.

While the initiative and plan were aimed to benefit the rakyat, the projects should be carefully executed to ensure that the promise is delivered as intended.