Affordable housing remains a key priority for the Penang state government, which has embarked on 12 affordable housing projects in all five districts of the state, which will see some 22,512 units of affordable housing being delivered within the next 15 years.

Penang Chief Minister Lim Guan Eng (pictured) said that work has commenced for at least four out of the 12 projects in the pipeline.

“The first project, which is the first phase of Bandar Cassia at Batu Kawan is due to be completed by next year,” he told a roomful of property industry players during his keynote at the Fiabci-Penang International Property Conference 2015 today.

He added that the private sector has shown its support for the Penang state-initiated 100% affordable housing policy.

* Click here for a complete list of affordable housing in Penang *

“To date, some 12,606 units of affordable housing have been submitted to the authorities,” said Lim.

However, he said that there were some obstacles faced by the state government in its delivery of affordable housing to the people of Penang.

“For one, the issuance of Advertising Permits and Developer Licenses (APDL) both for projects by the state government and the private sector, which usually take only two weeks to process, have been put on hold indefinitely by the Federal government,” said Lim.

He added that out of the 48 applications for licenses made from August 2014, only 18 had been approved by the Ministry of Housing as at April this year.

“It is now August 2015, one year later, and I am certain that the number of pending applications would have increased. I am told by developers who have applied for their APDLs and who are waiting that they have in fact complied with all requirements, and as such there is no reason whatsoever for the ministry to withhold the issuance of their APDLs,” said Lim.

He added that another obstacle is the high loan rejection rates by commercial banks of loan applications by low cost, low-medium cost and affordable housing applicants.

“I have long advocated the reintroduction of the Developer Interest Bearing Scheme (DIBS) for first time home buyers, and will continue to call for the same in Parliament,” said Lim.

He added that commercial banks should also loosen their lending conditions to such applicants of low cost, low-medium cost and affordable housing as part of their corporate social responsibility to assist the realisation of many Penangites’ dream to own their first homes.

Penang state executive councillor for Housing and Town and Country Planning Jagdeep Singh Deo said the state may consider increasing the income cap for potential buyers of affordable housing units to reduce the rejection rates by banks.

Currently, the net household income cap is between RM6,000 to RM10,000 for affordable housing units ranged between RM200,000 to RM400,000 respectively.

“If we were to consider increasing it by 50% to RM9,000 to RM15,000, this may achieve the objective of reducing the high loan rejection rates, however, it does not achieve the state’s objective of assisting the lower and middle income groups,” he said during a roundtable discussion at the conference today.

He added that a compromise could be met by the introduction of a new and cheaper type of affordable housing in the range of about RM150,000 to cater to the low and middle-income group, with the income cap maintained at RM6,000 or lower.

Source: TheEdgeProperty.com

Building dreams: Abdul Malik (fifth right) and other VIPs applauding during the phase two groundbreaking ceremony of SMJK Heng Ee branch in Bayan Lepas, Penang.

The SMJK Heng Ee branch in Jalan Sungai Tiram 1 in Bayan Lepas, Penang, will be able to take in 3,000 students once it is ready in 2018.

Construction of the RM50mil school project has entered its second phase with a six-storey academic building costing RM20mil. It will have 96 classrooms.

Heng Ee’s board of governors chairman Datuk Loh Geok Beng said the school would be able to take in pupils from nine Chinese primary schools in Penang’s Southwest district.

“It will bring convenience to the students and parents staying in this district. It will reduce traffic congestion since students no longer have to travel downtown for education.

“This is also a continuation of development in Chinese education for the betterment of the future generation,” he said in his speech at the groundbreaking ceremony of the second phase yesterday.

The school land, measuring 3.24ha, was contributed by Ideal Property and Koperasi Tunas Muda Sungai Ara Bhd to the Penang government for educational purposes. Ideal Property obtained a licence to build the school from the Education Ministry in 2013.

Phase one of the construction of an administrative building costing RM7mil has been completed. It was sponsored and constructed by Ideal Property Group.

The third phase will see the construction of a seven-storey building comprising a school hall, library, auditorium and other facilities.

Penang exco member Datuk Abdul Malik Abul Kassim, representing Chief Minister Lim Guan Eng to perform the groundbreaking ceremony, said the state has always emphasised strongly on the development of education.

“Education plays an important role for a society to prosper and become successful. The state government has given high priority in this aspect.

“Strong education can generate more quality human capital needed by the various industries in Penang. It will help the state stay relevant and become a destination of choice for investors,” said Abdul Malik, who is also Batu Maung assemblyman.

Also present were Ideal Property Group executive chairman Datuk Alex Ooi, Bayan Baru MP Sim Tze Tzin, Bukit Bendera MP Zairil Khir Johari, Penang Chinese Chamber of Commerce (PCCC) executive adviser Tan Sri Tan Kok Ping, PCCC president Datuk Seri Choot Ewe Seng and Penang Chinese Town Hall chairman Datuk Khor Teng How.

Source: TheStar.com.my

One of the signs the house is a student hostel – the many clothes and shoes outside the house. Also the extra air-conditioning units seen on the left wall of the car porch

There has been much debate about overcrowded homes, especially given the rise in the number of properties being converted into hostels, whether for students or foreign workers.

Those living near such houses would argue that a double-storey terrace house would be unfit for more than eight tenants, at most.

Landlords, on the other hand, would want to maximise returns and many would try to cram in as many tenants as possible, sometimes even more than 10 people to a house.

These “hostels” can be found in many neighbourhoods in the Klang Valley, especially those located near institutes of higher learning, industrial areas and commercial centres.

To put the arguments to rest, StarMetro referred to the Local Government Act 1976 to find out just what the law determines is overcrowding.

Shockingly, the Act, which was written almost four decades ago, states that even having 50 or 60 occupants in a property would not be considered overcrowded.

Section 79 of the Act states that there can only be one adult for every 350 cubic ft of clear internal space and for the purposes of the Act, an adult is defined as any person over the age of 10 years old.

Two children under the age of 10 will count as one adult.

Based on calculations for an average double-storey terrace house, the law allows for about 85 people to live in it.

To get to this figure, we assumed that the average double-storey terrace measured about 1,500 sq ft in floor space.

The floor space was multiplied by 10ft, which is the average height for a floor and then multiplied by two – for the two floors.

The figure amounted to 30,000 cubic ft, and since one adult only needed 350 cubic ft, it would allow the house to fit about 85 people in it.

“There is clearly a loophole in the law but on the national average, a maximum of five to eight people per family per household is acceptable and reasonable,” said Malaysian Institute of Planners president Md Nazri Mohd Noordin.

Even if some space is deducted for kitchen and toilet space, the calculations still come up to about 60 people per house.

Part of the problem is that the Act does not limit the calculations to bedrooms but includes any space within the premises that is clear and free.

“Even if the law says that, is it the right use of the building in terms of safety?

“I believe local governments have the tools to control this if they want to without even having to refer to the Act,” Md Nazri said.

For example, local authorities have different guidelines for the various zoning of houses, including hostels, which has its own guidelines.

He added that getting the Act amended was not an easy thing and the process would be too long and tiring.

Instead, he proposed a few solutions to this.

One solution was for guidelines to be written to strengthen the existing Act.

“Since some councils might not have the budget or manpower to write up the guidelines, the ministry can actually come up with the guidelines and give it to local authorities to implement,” he said.

“That way, not only will the guidelines be uniform, it can also help solve the issue of overcrowding,” Md Nazri said.

Another possible solution he suggested was for the local councils to impose stricter enforcement and have a team focused solely on tackling student and foreign worker hostel issues.

This would include frequent checks at houses which have been converted into hostels to ensure the number of occupants do not exceed the council’s set figure, based on the size of the house.

“However, I think this would take too much effort and manpower, which most local authorities cannot spare.

“Instead, the councils should work with universities,” he said, referring to students’ hostels.

He explained that this can help local councils better regulate the hostels.

For example, Md Nazri said, those who want to turn houses into hostels would first need to apply for a licence from the local authority before registering with the university.

Approved hostels would be listed by the university and students who need accommodation would have to apply for the hostels through the university.

This way, not only will it be safer but the number of students per household can be controlled and monitored as well, he said.

“Depending on the size of the house, the respective local councils can determine a figure for maximum occupants and the landlords will have to adhere to it.

“Since the universities will be in charge of it as well, this will help ensure the number of occupants do not exceed the allowed figure,” he said.

He added that this system was already implemented in foreign countries such as the US and it made it easier for the students as well.

“With control of how many people can reside in one house, this can ensure the safety aspects are looked into as well and also allow for some personal space for each person,” he said.

Similarly, this regulating process can also be applied to factories, where foreign worker hostels will also have to be registered.

Currently, some bigger developers are already looking into allocating space for foreign worker hostels in areas where they are building factories or commercial projects.

“I have worked with a few developers who actually took this into consideration and I think this is great.

“However, we cannot avoid having students and workers omitted from living in residential neighbourhoods because everyone has to co-exist,” he said.

He explained that kicking the tenants out or banning houses from being turned into hostels was not the solution.

Instead, stricter enforcement and regulation was the answer.

Source: TheStar.com.my

All major roads and highways in Penang will have dedicated bicycle lanes, said Chief Minister Lim Guan Eng.

He said the state government was giving special attention to complete the lanes on these thoroughfares by 2020.

He said among the routes where such lanes would be created were from Seri Tanjung Pinang in Tanjong Tokong to Bayan Baru, and from Tanjung Bungah to Teluk Bahang. Lim said existing roads would be expanded if necessary.

He also said there would be dedicated bicycle lanes along the proposed 6.5km undersea tunnel from Gurney Drive to Bagan Ajam in Butterworth.

On the death of cyclist Khaw Chun Kok, who was killed in a road accident in Mount Erskine last Saturday, Lim said it was a loss to the state as Khaw was one of the early proponents of bicycle lanes in Penang.

He said Khaw relentlessly pursued the goal of pushing for such lanes on major roads in the state which has become a reality over the last few years.

“We have lost an ardent cyclist who could be seen in every cycling event and took the lead in promoting the healthy sport,” he said after paying his last respects at Khaw’s wake at the United Hokkien Cemetery in Paya Terubong on Tuesday.

Lim, who is Air Putih assemblyman, gave a RM1,000 donation to Khaw’s widow Teoh Bee Imm from his constituency fund.

Khaw, 64, died some 20 minutes after an accident with a motorcycle which was turning out from Jalan Evergreen 4 at 6.30am on Saturday. He was then cycling along Mount Erskine Road to Batu Ferringhi. Khaw, from Air Itam, was cremated yesterday after his funeral at the Paya Terubong funeral parlour.

Among the places where bicycle lanes have already been built is from Queensbay Mall to George Town.

Source: StarProperty.my

Penang Development Corporation (PDC) has inked a joint venture agreement with two Singapore-based companies to develop a RM1.3bil Business Process Outsourcing Prime (BPO-Prime) Complex in Bayan Baru.

The complex will be built on a 2.8ha of land where the PDC office is located currently.

Chief Minister Lim Guan Eng, who witnessed the agreement signing ceremony, said the collaboration with Temasek Holdings and Economic Development Innovations Singapore is a testimony of confidence and trust the international business community has in the future of Penang.

“BPO-Prime will represent the prime business hub in Malaysia’s Multimedia Super Corridor at Penang Cyber City 1 in Bayan Lepas with a gross developmental value of RM1.3bil and gross floor area of minimum RM1.6mil sq ft,” Lim said.

He added that the project would start in 2016 and was expected to finish by 2019.

Lim said BPO-Prime would be the catalyst for the Penang’s industrial transformation, such as creating a new cluster of economic development in BPO, Knowledge Process Outsourcing and Information Technology Outsourcing.

“It will also become the home to multinational companies and it is estimated to create 4,000 high-income and quality job opportunities.

“Its high value added ser-vices hub includes customer operations, data processing, back office administration, accounting, technical support, transcription, software development, IT consultancy and disaster recovery services,” he said.

Lim said BPO-Prime would ensure progress in economic vibrancy, social development, liveability and sustainability.

“The Shared Services Outsourcing (SSO) sector has achieved rapid growth over the years and the state’s SSO is providing more than 8,000 high-income jobs to locals as well as serving both regional and global markets,” he said.

Source: TheStar.com.my