Advisory Center for Affordable Settlements & Housing

acash

Advisory Center for Affordable Settlements and Housing
ACASH

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Malaysian Affordability Housing Policies

Housing has always been a significant aspiration of family expression and distinctly priciest investment by household. It plays a momentous role in the country’s economy and so central to the societal well-being that is emplaced in the United Nation Universal declaration of Human rights. Yet in developed and developing world alike, cities struggle to provide decent housing for lower and middle income population. The provision of affordable housing is a major policy concern around the world with Malaysia being no exception; rising income hardly keep pace with price hike of housing unit and housing interventions has majorly concentrated on demand side leading to a non- responsive supply sector. Therefore, this paper highlights affordable housing issues pertaining Malaysia. It formulates Malaysian Map of affordability and conducts an evaluation of global housing schemes to better identify policy priorities for Malaysia. It’s significant to harmonize supply and demand side factors in the housing market to ensure that housing supply fits the needs of citizens based on the location, price and target group. In case of Malaysia supply oriented initiative are of urgency in short and medium run. This must be supported by long term demand side schemes in parallel. Convergence of these two factors is essential for a balanced equilibrium and obtaining affordability. Housing is decisively rooted in the economic social, and political sphere of any country that it impossible to be explored in isolation from the broader scope of governance and policy. Besides being a remarkably valuable asset, it carries multidimensional significance; It plays an eminent role in accelerating economic growth and it carries social prominence as a spatial locus of personal and familial life (Abd Aziz, Hanif, & Singaravello, 2011; Keivani & Werna, 2001) Despite its multidimensional implications, access to affordable and adequate housing has been an everlasting challenge globally (Beer et.al., 2007). The economic and human cost of the housing affordability issue is massive as 330 million households are affected worldwide. Holding the existing trend constant, total households with unsafe and substandard housing or are financially strained by housing expenditures is estimated to reach 440 million – or 1.6 billion people by 2025 (Woetzel et.al., 2014).

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