THE Penang government will take stern action against developers who force successful low-cost applicants into accepting additional packages for their new homes.
When asked by reporters at the 2023 Inter-state Housing Symposium at Hotel Mercure in Tanjung Bungah today, state Housing and Environment Committee chairman Datuk Seri Sundarajoo Somu emphasised the government’s commitment to addressing this housing issue with decisive action.
“We’re still brainstorming on what kind of approach to take. We have to do it legally and we are now talking with the state Legal Adviser on this matter.
“If any developer is caught forcing purchasers to take up renovation packages, the state government and local authorities will know what to do when they submit their new plans to us.
“We have received complaints. The developer is not supposed to do that.
“As the state government, all development projects have to go through us. When they submit their new plans, we know how to hold them back. I think we have to have some enforcement here because we cannot allow this to go on,” Sundarajoo said.
Echoing Chief Minister Chow Kon Yeow’s stance, Sundarajoo said the prices offered to purchasers must be upheld by the developers.
He said buyers have the right to decline renovation packages and any additional offerings should be based on a voluntary agreement between the buyer and seller.
The prices of affordable housing units are priced between RM42,000 and RM300,000 by the state government.
Sundarajoo said it is a pity for the low-income earners who qualify for the RM42,000 units but are pressured to spend RM100,000 on renovations.
“These people are not rich. I find this practice unacceptable and we won’t tolerate this.
“All developers should stay with the offered price. If purchasers don’t wish or cannot afford additional furnishing packages, please do not compel them,” Sundarajoo added.
For those who have been allocated affordable units, Sundarajoo said the units are intended for personal use and should not be sublet or rented out to either local residents or foreigners.
“During my term, I want to make sure we stop people from renting those low-cost houses which we heavily subsidised. We give them these homes for their own use, not for them to make money,” he said.
Stressing that he is not against foreigners, Sundarajoo believes that it is unhealthy in the long term for foreign workers to be living among the people because of social problems.
He said as an immediate measure, some factories have started to take over abandoned housing schemes in south Seberang Perai and convert them into housing quarters for foreign workers.
For the long term, he said the government is looking into the possibility of building centralised labour quarters (CLQs) within factory premises and industrial parks.
He said a lot of things, including Covid-19 and social issues, can be contained within the parameters.
On the symposium, Sundarajoo expressed hopes that all participants could discuss and exchange ideas that could lead to the formulation of policies or guidelines for their respective local governments.
The symposium, which commenced today with the participation of representatives from nine states, is scheduled to conclude tomorrow.
Story by K.H. Ong
Pix by Noor Siti Nabilah Noorazis