FIN 657

ISSUE AND ETHICS IN FINANCE

(GOVERNMENT HOUSING PROGRAMS FOR

MIDDLE INCOME GROUP IN MALAYSIAN)

NAME: NUR FATINAH IZZATI BINTI ZAMRI

MATRIC NO.: 2017662798
CLASS: BA 242 5B
LECTURE: MADAM NURAZLEENA BINTI ISMAIL
INTRODUCTION

Nowadays, the middle income group is very hard to get affordable home and they do not
enough cost to build or buy their own house. Apart of that, the major problems are housing
project it still low compared to people need, government must really focus to make the housing
programs become success and affordable housing for low income group. Housing is a basic need
that can improve the quality of life and every people wish to own their housing in the future.
Furthermore, house is the main goals to all of people in their life and house is a need to the
people for shelter to their families. Housing also important to the people because it is a long term
asset for people who buy it and it also can made an investing for a long term personal financing
planning.

Government housing programming for low income group in Malaysian are created
because people in a middle income group cannot afford to buy houses if the cost higher than
their salaries. Housing market prices are based on the comfortable of buyers to own a house and
it also a main topic in a society that people always talk about that either in a rural area. So it is
because the housing prices keep moving and affected the middle income group. According to the
Word Bank comfortable index (2012) that highlighted by EPU, JPM through the Eleventh
Malaysian Plan document, said that the housing market price in Malaysian should improve their
quality life and own their dream house.

Lastly, the government should make it reality not fantasy housing programming in
middle income group in Malaysian. They must responsibility and make it project work by
implementing a housing programs for the middle income group in Malaysian that can make them
comfortable to buy or build their own wishes house. The government needs to focus to their
project plan to make successful. So, affordable housing programs can make sure that all middle
income groups can have their own dream house.

ISSUE

The major issue relating to this topic government housing programs for low income
group in Malaysian in a middle class in Malaysian can afford their own their houses and they
capable to buy or build low cost house. Housing market price are now very high cost and effect
to middle income group to buy or build their home and they also forced to choose place in urban.
Therefore, the government implementing many kinds of housing programs so that to low income
group can afford to own their house. They are many housing programs by the government
planning for the low income group such as people can afford to buy a house because of lower
cost housing. Affordable housing projects are very effective to people in a middle income groups
and it is also give benefit to Malaysian country. Government also can make a better economic
condition and population in Malaysian because affordable housing programs improve people
quality life. An affordable housing program is specified to people only poor or low income only.
It is also they only need lower cost to build or buy affordable housing programs because the cost
low and pay monthly installment and government want this project make people comfortable to
their own houses. According to the Tenth Malaysian Plan (2010-2015), there are many public
housing plan has been implemented by the government.

SIGNIFICANT

DEVELOPER

The government implementing housing programs for low income group can give effect
to the developer. The problems started after affordable housing programs give run to the
developer that can provide a low cost housing to the middle income group. This is because the
governments unable to provide enough housing programs for people that cannot afford their
income budget to buy a low cost housing in their country. It also very difficult to build or buy
affordable house in Malaysian before affordable housing programs run in Malaysian, people in
low income forced to keep saving money for buy and build their house but still they need to plan
their financing budget to make sure their cost is enough to buy or build houses because economic
condition and housing market price in. Furthermore, developer should make sure government
project can give benefit and profit to them and developer should have strategic planning to make
sure cost given are enough to build a quality housing and safe to people living . According to
Zakiyah, Sh. Sofiah and Afifah (2004), the developer has been given more sites to build a project
for housing development by the government. The state government also involve in housing
programs through State Economic Development Corporation (SEDC) which act as a developers.
INDIVIDUAL

The issue started after people not responsible and want to take advantage from housing
programs for low income groups, they lies their income to get this project and it is give effect to
low income group because they do not know how to apply this affordable housing programs
especially to poor because they do not about that. People also have to patience to wait the result
because process have to take time because we want to know the information given also true or
not, so the result only people in low income groups only can afford this housing programs. If the
government success in this project, so people would feel comfortable and fun to make a house
with a variable facilities and the more satisfied with their cost investment to affordable housing
programs. The individual is referring to the low income group. The government implementing
housing programs for middle income group can give effect to them. People in low income group
choose to small saving and they want to make sure buy or build low cost house because cost
housing programs very low and can pay monthly installment, they also can get their affordable
house in the future. This will make the low income group can build or buy their own house with
their income below than RM2500. When the government can run and improve quality affordable
housing projects, people must take actions to their wishes home. According to the Tenth
Malaysian Plan (2010-2015), it shows that the monthly household income for the Program
Perumahan Rakyat (PPR) is RM2500 and below.

IMPLICATION

DEVELOPER

The implication of the government housing programs for the middle income group in
Malaysian are the developer will get a benefit such as profit from project housing programs from
government. This is because the developer can provide a low cost housing for the middle income
group that the government cannot enough to provide house. The involvement of the developer in
construction also will help the government to provide enough house for middle income group.
Therefore, the middle income group can afford to buy or build their own house. According
(Bajunid and Ghazali, 2012) the developers said, middle cost project lower than maintenance
cost so, the small cost housing project cannot afford to get profit. Where the developer run the
project they maybe can face the problems like cost do not enough to build or buy their dream
houses because higher price.

INDIVIDUAL

The second implication of the government housing project for middle income group in
Malaysian are people in a middle income group will lead to buy or build their own houses
because they do not planning their investment. People with low income group do not have
enough knowledge how to manage their financial budget and they also do not plan their goals to
buy or build low cost house and they choose to buy their housing with higher price. The middle
income group planning to purchase affordable house should consider the housing market price is
lower but the reality is higher than what they thinking. According to National Transformation
Program Annual Report (2016), the Prime Minister of Malaysia said that the implementation of
housing programs will give a benefit to millions of people in rural area mostly the lower income
group. 94,605 houses will built for the poor people.

OPINION

In my opinion government should make a program like advertisement or bulletin to make sure
people in low income group know how to apply affordable housing programs because some of
people do not know government planning. Furthermore government has to collaborate with trust
developer to make sure this project success and the result housing project can be developed in a
better quality in future. Government also have to always make a check time to time whether the
project have a good progress or not so they do not have major problems again. So the
government should run the housing programs for middle income group to own their house. Such
as, low cost housing project, Program Bantuan Rakyat (PBR) and Program Perumahan Rakyat
(PPR) that will help the middle income group to own affordable dream home. In order for the
low income group to own a house affordable cost, the government should build more flat house
that can place more people and provide facilities such as playground, supermarket, parking lot,
surau, and community hall to more comfortable to them.
CONCLUSION

As a conclusion, the government housing programs for middle income group is the major
issue in Malaysian. The government should provide affordable housing unit for middle income
group. So, they can get better quality life because they have their own houses. The government
provide like Scheme Perumahan Rakyat 1 Malaysia (PR1MA), Program Perumahan Rakyat
(PPR) and Progaram Bantuan Rakyat (PBR). Furthermore, the government housing programs for
middle income group in Malaysian to own their dream house and get a better quality life in the
future. The developer also can get more profit from government project. Lastly, Malaysian
people can afford to buy or build their own dream house in the future and the low income group
also can improve their quality life to better more in the future because they can afford their own
house. Government can be more improve in economic and population condition in Malaysian.

REFERENCES

(Othman, Ashikin, Yusof, & Mohamed, 2017)Abdullahi, B. C., Nor, W., Wan, A., & Aziz, A.
(n.d.). PRAGMATIC HOUSING POLICY IN THE QUEST FOR LOW- INCOME
GROUP HOUSING DELIVERY IN MALAYSIA.

Bakh, B., Zaharim, A., Sopian, K. Bin, Saadatian, O., & Electric, G. (2012). Affordable Quality
Housing for Urban Low Income Earners in Malaysia Affordable Quality Housing for Urban
Low Income Earners in, (March 2018). https://doi.org/10.2139/ssrn.2184629

Othman, N., Ashikin, N., Yusof, M., & Mohamed, Z. (2017). PRELIMINARY REVIEW ON
HOUSING POLICY AND ITS IMPLEMENTATION, 3(1), 2013–2016.

(Abdullahi, Nor, Wan, & Aziz, n.d.)

(Bakh, Zaharim, Sopian, Saadatian, & Electric, 2012)Abdullahi, B. C., Nor, W., Wan, A., &
Aziz, A. (n.d.). PRAGMATIC HOUSING POLICY IN THE QUEST FOR LOW- INCOME
GROUP HOUSING DELIVERY IN MALAYSIA.

Bakh, B., Zaharim, A., Sopian, K. Bin, Saadatian, O., & Electric, G. (2012). Affordable Quality
Housing for Urban Low Income Earners in Malaysia Affordable Quality Housing for Urban
Low Income Earners in, (March 2018). https://doi.org/10.2139/ssrn.2184629