PETALING JAYA: A single township with modern facilities specially for low and medium income families will be set up to enable this group to enjoy a better quality of life.

The mammoth pilot project, which will begin before the year’s end, aims to allow these families to own a property that will appreciate to a reasonably high value, as the township will be built on prime land.

Called the Klang Valley Development Corridor, the pilot project will be equipped with modern and recreational amenities to complement the 12,000 units of houses built on more than 400ha of land owned by the Rubber Research Institute of Malaysia in Sungai Buloh.

Second Finance Minister Datuk Dr Jamaluddin Jarjis said the purpose of the project was to reduce the current feeling of disparity among low- and middle-income groups in and around the city.

''We want them to own a property which will appreciate in value. This township concept will be a boon for this category of wage earners,'' he told a press conference here yesterday.

Dr Jamaluddin explained that the project was to overcome any housing shortfall following the Government’s recent Budget announcement relieving housing developers of their obligation to build 30% of low-cost houses in their schemes.

''Private developers are driven by market forces. Low-cost houses are often built last and there are instances when construction stopped midway or the schemes abandoned.

''Thus, it is better that we allow them to concentrate on their business while Syarikat Perumahan Negara Berhad (SPNB) undertakes the building of low-cost houses.

''However, the private developers are expected to contribute a certain amount to SPNB. The amount is to be agreed upon when we meet representatives of the Real Estate and Housing Developers Association,'' he said when asked on the amount they would have to contribute.

Under Budget 2004, developers were given the choice to either undertake the 30% construction of low-cost houses or designate the duty to SPNB.

Dr Jamaluddin said the Government’s intention in coming up with this project was also to provide recreational facilities like community centres, modern bus terminals, food courts and playgrounds to low-income earners.

''We can’t do it if they are scattered in different areas, so we plan to bring them together in one area and provide them with better transportation and amenities.

''This will also help reduce their expenditure and social problems,'' he said, adding that the project might be extended to other states if it is proven to be successful.

Priced below RM100,000, he said the pilot project would have 4,800 low-cost, 2,400 low-medium and 4,800 medium-cost units.

He said the Government was targeting first-time homeowners, young graduates and newly-weds.

Dr Jamaluddin said EPF contributors who buy low-cost houses built by SPNB would be provided with end-financing by Malaysia Building Society Berhad with no legal fees.

Source : The Star  15/9/2003