KUALA LUMPUR: The 2016 Budget will include an allocation to promote Industrialised Building Systems (IBS) for the construction of homes.
In the 2016 Budget today, it was revealed that there would be an IBS Promotion Fund of RM500 million which would be provided by the SME Bank.
The bank has been tasked to provide soft loans to developers and contractors in the category of G5 and below.
1Malaysia People’s Housing Programme (PR1MA) chief financial officer Datuk Hasleen Isnin said the government’s initiatives would benefit developers greatly in producing quality homes at a faster rate.
“Although PR1MA is not eligible for it, contractors working with PR1MA to produce affordable homes are. And they are definitely encouraged to apply for it.
“This will tremendously help developers build better quality homes at a faster rate resulting in higher volume of units to cater to the increasing demand for affordable homes,” he told Business Times today when contacted.
In the 2016 Budget announcement, PR1MA’s target for 2016 is to build 175,000 units of homes.
“The allocation of RM1.6 billion would help to partly finance the development works of PR1MA housing projects. Prior to the 2016 budget announcement, PR1MA had, in August 2015, signed a RM3 billion bridging loan facility with Maybank Islamic Bhd, which would be used to also partly finance the construction of our homes nationwide.
“With continued support from the Government, as well as support from our partners, we are optimistic of delivering these homes,” PR1MA said in an emailed statement.