NST Leader: Housing policies must put people before numbers

The Malaysian government has been praised for transitioning from merely announcing new housing projects to tackling the longstanding issue of abandoned developments. For many years, stalled projects have marred communities and burdened buyers financially and emotionally. Recent restoration efforts demonstrate that targeted intervention, when supported by political commitment and coordination, can yield positive outcomes.

However, the most critical aspect is not merely setting targets but ensuring their successful achievement. One effective strategy is to focus on building where there is demand. This straightforward approach is economically wise but infrequently implemented. Affordable housing should not only be deemed affordable due to its location, distant from employment opportunities, public transportation, and amenities.

Central to housing planning must be data-driven decision-making, rather than relying on the arbitrary decisions of developers or policymakers. Repairing existing structures is beneficial, but prevention is even more advantageous. To prevent projects from becoming distressed in the first place, stronger financial assessments of developers, more rigorous project monitoring, and earlier intervention mechanisms are necessary.

Financial stability among developers is a major concern in Malaysia, with numerous entities struggling with cash-flow problems. They often lack sufficient capital to pay contractors, suppliers, or finance companies. The process through which projects receive official approval or financing from financial institutions remains unclear.

Project feasibility also poses challenges; when construction, land, or financing costs are underestimated, or if houses are priced excessively high, the project becomes commercially unsustainable. Despite legal approval and the payment of substantial sums by purchasers, projects can still be delayed if developers cannot secure financing or if disputes arise between developers, contractors, and banks.

This leads to protracted legal battles that leave purchasers both financially and emotionally devastated. The root cause of project failures requires a comprehensive examination. Abandoned housing projects are merely symptoms of deeper issues. A thorough evaluation of the underlying causes of project failure is essential. One preventive measure is to enhance transparency and accountability, areas where Malaysia currently performs poorly.

Regular reporting on progress towards the one-million-home target should be implemented so that Malaysians can monitor the number of units completed, occupied, and delivered to intended beneficiaries. Additionally, the focus should shift from mere numbers to livability. While a million homes is a commendable figure, success should also be evaluated based on whether families can establish sustainable lives in these communities.

The term "affordability" is also problematic. Who is it affordable for? Developers? Policymakers? Certainly not the buyers. Affordability should not be subjective, varying with each individual's perspective. The government must ensure that affordability is genuine and that housing prices are aligned with local incomes, rather than being arbitrarily labeled as affordable. Home ownership should not compel households to take on unsustainable debt.