KUALA LUMPUR, April 8, 2015:

House prices through the 1Malaysia Civil Servants Housing Programme (PPA1M) have been deemed as “still high” for some low-ranking civil servants.

Congress of Unions of Employees in the Public and Civil Service (Cuepacs) president Datuk Azih Muda said the estimated price, specified when PPA1M was launched by Prime Minister Datuk Seri Najib Razak on Tuesday, was affordable only by a certain section of civil servants.
“Estimates of between RM100,000 and RM300,000 per unit are still high because many lower-ranking civil servants cannot afford to buy at that price,” he said when contacted by The Rakyat Post.
To compensate for this, Cuepacs is suggesting that the federal government work with state governments to build low- and medium-cost houses in rural areas.

“We understand that with increasing construction costs and the rising cost of living, low-income civil servants are unable to own their own homes.

“It is time for PPA1M to work with state governments to build low- and medium-cost houses below RM100,000, from RM80,000 to RM90,000 per unit.

“In addition to this, housing loan rates should be raised and loan interest rates lowered from 4% to 1% as has been proposed by Cuepacs to the government.”

Azih also expressed his support to the leadership of the Prime Minister who was concerned enough to launch a programme to provide housing for civil servants and citizens who still did not own homes.

“I want to express gratitude for the efforts of the Prime Minister in making PPA1M a reality to enable civil servants to own homes.

“I also hope that the National Housing Policy is more consistent in continuing to build houses for civil servants so that all public servants are not left out from owning their own homes.”

In the meantime, he said, Cuepacs also expected the government to consider the construction of more low-cost homes for the welfare of civil servants in the future.

Najib, during the launching and balloting session of PPA1M Bukit Jalil on Tuesday, was quoted as saying that for the welfare of civil servants who had contributed significantly, the government had agreed to build 100,000 housing units for them throughout the country.
The Prime Minister said the residential units that would be built would be sold at a price below the current market value of between RM100,000 and RM300,000 per unit.

Of the 100,000 units to be built, 1,536 units will be built in Bukit Jalil here.

He said this was part of the government’s existing commitment to the welfare of the people with a focus on target groups which needed comfortable homes.

“The government will never forget the services and sacrifices of civil servants and will continue to ensure the welfare and comfort of civil servants are always looked after.”
Also present at the ceremony were Federal Territories Minister Datuk Seri Tengku Adnan Tengku Mansor, Chief Secretary to the Government Tan Sri Dr Ali Hamsa, Kuala Lumpur Mayor Datuk Seri Ahmad Phesal Talib and Kayamas managing director of assets Tan Sri Chai Kin Kong.

http://www.therakyatpost.com/news/2015/04/08/ppa1m-prices-too-high-for-low-ranking-govt-servants-says-cuepacs/

If RM100,000 and RM300,000 is too high, how much is reasonable? RM80,000 to RM90,000 is, according to the article. But just curious how realistic it is to build a proper apartment with such cost?

Recently I was reading an article talking about affordable home in Penang. The article mentioned the affordable home (apartment) in Penang is really bare bone. Home buyer need to fork out another big sum of money to make the place "livable". Hence a lot of people who are entitled to buy an affordable home in Penang do not want to one.

If affordable home in KL really gets down to RM80,000 to RM90,000 according to the suggestion, will KL/Selangor will end up like Penang?

Too much nonsense clouding reality these days. The ones making the problem are the ones the same ones pointing out the problem, as if they are two separate entity. It isn't really, here's why.

Firstly,IMO the main reason the houses are not affordable isn't because they houses themselves cost too much. At RM 100-200k, its fairly doable with the right strategy and mentality of a common Joe. The reason these houses became beyond affordable is because of the household sky high expenses which are draining away the portion supposedly allocated for mortgage. Cost of food, transport, education, healthcare and other necessities are too high because of GST, economic and political instability and the sorts. And it hurts the lower class hardest, the first. Point is, unaffordable because cost of living not cost of house.

If the government were to enforce low cost housing at below RM 100k in KV, we can pretty much be sure the building will fall apart in very short time. Lousy/Cheap materials, shortcuts to cut cost, living requirement inadequately fulfilled, low standards of living. That's not housing to me, that's just temporary accommodation no different from the wooden village of foreign workers at construction sites. That's not even a proper place to raise a family, how are we supposed to count on them to work for the government and Malaysia?

Give them proper housing lah. If they can't afford, restructure the deal. Maybe zero down (if it isn't already), repackage their paycheck to include passive mortgage allocation, or maybe just fix the damn country's economy.

Just my two cents.

Oh by the way, wanna make a guess who are the near next category to fit in the unaffordable issue? The young generations like us. The ones reading this. /faint.

May be low ranking government servant should buy low cost house...

I have a friend working in government. According to her government servants get houses at extremely discounted prices, get 100% confirm approved loans at almost no interest, and generally have extremely low monthly repayments. Aside from that, I don't know about the 'normal' government servants but her sister who's an air traffic controller of air asia gets an extremely 'low' basic of about RM3k+, but with her claims and 'travel expenses' and 'other expenses' she gets up to RM8k++ per month. Oh, and it's compulsory for their salary to be increased by 10% or so every year, and they will never get fired ever.

Now, I don't know how true all of the above is, I'm just repeating what I heard so don't crucify me. But that's what I heard. And if the above case is true of most government servants, I now know why so many certain types of people want to work for the government. It's a nice lazy life where all they need to do is complain bitterly about how miserable their lives are and how little benefits they get.

Tax payers are funding them...