Low-cost housing leakages in Malaysia: the unexplored dimension

ABSTRACT Over the years, the Malaysian Government and private housing developers have been providing low-cost housing (LCH) yet the demand-supply gap is on the increase. Hence, this paper investigates the LCH leakages in Malaysia in an unexplored dimension. This was done sequentially, first, findings from the qualitatively explored phase was further tested and analysed via a questionnaire survey. The “quantised findings” were validated by the Malaysian LCH policymakers. Findings confirm a severe shortage of LCH. The study found under-declared income by house-buyers (frequent in states with lax enforcement), auction of LCH in open bidding, sales of LCH within the moratorium period by house owners for profiteering among others as the root causes of LCH leakage. The paper concludes that the government should engrave the land title deed such that only low-income earners (LIEs) are eligible to possess LCH. Second, implement the cumulative ruling (construction of LCH by a developer not based on the conventional but reach an agreed threshold target irrespective of the numbers of projects) for LCH provision. Also, states should set-up joint task force that comprises of land, planning, and housing department to monitor and ensure compliance, among others, were recommended.