Low income housing provision in Malaysia : the role of state and market

The debates on the role of state and market in housing provision in East Asia countries are still consider new. There is still huge gap in the literatures particularly in the low income housing segment. Therefore, the paper aims to examine the role of state and market in housing provision in Malaysia especially for the low income housing. Based on the study in many East Asian countries, there are tendencies for the state to move towards market-oriented in the housing provision. Situation in Malaysia is rather different since the state still actively involved in housing provision and allocation of low income housing. The paper will provide justifications of state continue involvement in the low income housing provision in Malaysia

Low income housing allocation system in Malaysia: managing housing need for the poor

Since early 1990s, Malaysia experienced rapid urbanization in line with continuous economic growth. Despite various housing programmes implemented by the Malaysian government together with private sector to provide housing for the low income people but the number of squatter settlements continue to grow. In 1999, the total people living in squatter is more than half of million including the illegal immigrants from the neighbouring countries. The government began to increased number of new housing stock in order to resolve the issue. However the government later realized the issue is no longer related to housing production but due to inefficient allocation system. Many studies indicated problem faced by the low income people to purchase the house due to bureaucratic process and corruption practices among the bureaucrats and politicians in housing allocation. Thus, in 1997 the Computerised Open Registration System (ORS) for low cost housing allocation was introduced by the government to provide efficient and more transparent system of allocation. The system not only used to allocate the house for sale built by the government but also those built by the private sector. Finally the system not only to ensure the targeted people will eventually owned the low cost house but also to reduce corruption which is common problem in developing countries

The housing provision system in Malaysia

Since Habitat I in 1976, the housing provision system in Malaysia have gone through various phases to keep pace with country's political economy changes and globalization as promoted by the international agencies such as the World Bank and International Monetary Fund (IMF). Malaysia have made tremendous progress to address severe housing shortage, substandard housing and slums in the urban areas since independence in 1957. The Structure of Housing Provision (SHP) framework will be used to analyze the changes of housing provision system in Malaysia since 1970s. The housing provision in Malaysia since 1971 can be divided into four phases namely Housing the Poor (1971e1985), Market Reform (1986e1997), Slums Clearance (1998e2011) and State Affordable Housing (2012-to date). Unique country's population and economic background require different approach of policy and programs to address housing problems. Nevertheless the state and market continue to play an important role in housing provision since 1970s regardless of country's political economic changes. As a result more than 1.3 million low cost housing units has been built by both private and public sector from 1971 to 2010 to address housing need for the poor throughout the country and reduced significantly the number of people lived in slums. To address housing need for growing middle income group and changing people lifestyle another 1 million of affordable housing units are planned to be built in the next 5 years until 2020 mainly through the state affordable housing programs. Finally, the paper also will highlight the challenges and problems faced by the state and market in the implementation of various housing pro- grams in Malaysia since Habitat I

Changing structure of low income housing provision in Malaysia: housing allocation under the computerised Open Registration System (ORS) for low cost house buyer

Malaysia is one of the countries in East Asia that has experience the rapid economic growth during the early 1990s before suffered the severe downturn during the Asian Financial Crisis in 1997-1998. Following the crisis, the property sector particularly housing have badly affected and required federal government intervention to revive the economy through provision of low income housing. Nevertheless the state intervention in low income housing provision is against the practice in other East Asian countries which generally moving towards market economy as propagated by International Monetary Fund (IMF). Low income housing provision by the federal government also earmarked changes in structure of low income housing provision in Malaysia including the allocation of the houses to eligible buyers. Using Structure of Housing Provision (SHP) approach developed by Michael Ball and Harloe as framework to analyse the changes in low income housing provision in Malaysia. The paper then will discuss the role played by the state in housing allocation for the poor using the Computerised Open Registration System (ORS) for low cost houses provided by the state and market

Urbanization and housing in Kuala Lumpur city centre : issues and future challenges

Rapid urbanization during the 1970’s and 1980’s has shown greater impact to urban and housing development in Kuala Lumpur from the previous era. But during the 1990’s due to better economic condition and changing urban dwellers’ lifestyle had led to counter urbanization of development. According to cencus in year 2000, population of Kuala Lumpur are at 1.29 million people far below projection by Kuala Lumpur Structure Plan 2000 (1984) at 2.2 million people by year 2000. Draft Kuala Lumpur Structure Plan 2020 (2003) review recently, had acknowledged that the slow population growth as compared to projection was mainly due to out-migration of people for better and cheaper houses outside Kuala Lumpur city. Kuala Lumpur City Centre also known as Central Planning Area (CPA), being the heart of Kuala Lumpur City had experienced the population decline from 156,981 people in 1980 to 128,721 people in 2000. In term of housing in city centre, although the number of units had shown an increase from 29,562 units in the year 1990 to 31,106 units in 2000 but housing land use component had dropped from 390.58 hectares in 1984 to 254.88 hectares in 2000. It seems that the trends will continue in the future and further deteriorate the residential population in city centre if no drastic measures taken by the Kuala Lumpur City Hall (CHKL). Therefore this paper will look into the impacts of urbanization process in Kuala Lumpur with particular reference to housing sector especially in the city centre. Which includes an analysis of the current issues and trends of housing development and recommendations for more sustainable urban growth in Kuala Lumpur

The changing role of the state and market in low cost housing provision in Malaysia

Since 1990s the global trend in housing provision shows a shift towards greater market role including for low income housing. Increasingly the state relied on market to provide low income housing and confined its role as enabler and facilitator to support the market. Housing provision refers to process of housing production and consumption or allocation by the consumers. Thus, the analysis in this paper focused on the role of the state and market in low cost housing production and allocation process. The findings showed the state gradually began to retreat from direct low cost housing provision and relied on market since 1990s. Despite economic crisis in 1997-1998 the market still played significance role in low cost housing production. Instead the state focused on solving housing problem among the squatters and revived the economy through public housing programmes. However in terms of low cost housing allocation, the state still retained it controlled since 1950s. Thus, explained the unique features of low cost housing provision system in Malaysia

Role of the state and market in low cost housing provision: the case of Open Registration System (ORS) for low cost house buyers in Malaysia

The key findings include, firstly, the fact that housing provision in Malaysia shows no sign of convergence with the Western neo-liberal model. The state continues to control and regulate the market in low cost housing allocation through ORS. Secondly, although low cost housing production shows trends of commodification since the early 1990s, the allocation process remains the sole responsibility of the state and is highly decommodified. Thirdly, most low cost housing buyers prefer the market to manage the allocation for private low cost housing. Finally, ORS implementation shows the state is dominant in housing provision in Malaysia, which is synonymous with the developmental state approach