KUALA LUMPUR: The government is looking at setting up a single entity to manage affordable housing issues in Malaysia, said Second Finance Minister, Datuk Seri Johari Abdul Ghani.
Speaking at Invest Malaysia 2017, Johari acknowledged that there are certain ongoing complications when it comes to affordable housing, brought on by property developers themselves.
"The problem is that there is no single body to overlook the property sector in Malaysia and that is why we have the definition of what is "affordable" differing significantly from one property developer to another," said Johari.
"These days, people say that RM300,000 is considered affordable when Bank Negara itself noted that affordable housing are those priced RM200,000 and below. However, you hardly can find any property priced within the RM200,000 range."
He noted as well that private property developers are even pricing their "affordable" units at RM500,000, which is well beyond what is recommended by Bank Negara.
"Yes, there is an oversupply of high-end properties, especially in the Klang Valley. Properties are even being built in places that they should not," he said.
"This is definitely something that the government is looking into in the near term."
Johari was earlier a panelist at "Plenary 2: Spotlight on Malaysia's Fundamentals". The panel was moderated by CIMB Group Chairman, Datuk Seri Nazir Razak.