pywong
14th November 2008, 04:17 PM
My reading of Clause 8 of the Constitution is that this is against the Constitution. Khalid Ibrahim's statement (unless it has been twisted by the media) that there is no need to waive the quota system as many Malays still need help to find affordable housing, is not very bright.
Washington Post
Thursday, November 13, 2008; 7:50 AM
Malaysia urged to scrap housing quota for Malays
By EILEEN NG
The Associated Press
KUALA LUMPUR, Malaysia -- Malaysian property developers on Thursday
called for scrapping the special housing privileges given to the
ethnic Malay majority, saying an open market is crucial to stimulating
growth especially now the economy is slowing.
Under a decades-old affirmative action program to help Malays increase
their wealth, developers are required to sell at least 30 percent of
homes in their projects to Malays at a discount.
Housing comes under state purview and in some areas, the quota runs to
as high as 70 percent.
Malays make up nearly 60 percent of Malaysia's 27 million people, and
also get privileges in state contracts, jobs and education under the
New Economic Policy which was started in 1971. Many minority ethnic
Chinese and Indians feel marginalized by the policy and critics say it
breeds cronyism, corruption and inefficiency because it mainly
benefits a well-connected Malay elite.
Eddy Chen, managing director of local developer Metro Kajang, said the
housing quota is a setback to the industry, particularly during the
current economic gloom when developers are already burdened by high
construction costs.
Speaking at a property conference, he said many developers find it
tough to sell the allocated Malay units and warned this may force them
to abandon projects.
Chen said if authorities cannot remove the quota they should impose it
only on low-cost housing.
The value of unsold property allocated to Malays nationwide is
believed to "run into billions of ringgit" and if released into the
market, will help stimulate sales, he said, without giving figures.
"We should do that now before it's too late. If we hold on to the
quota, developers will face cash-flow problem and may abandon their
projects," Chen said. "The government doesn't lose anything if it
(scraps) the quota."
Lee Kim Yew, deputy chairman of property developer Country Heights
Holdings, described the quota policy as "outdated."
He said many Malays don't want to buy the allocated units partly
because they are not allowed to resell them in the open market to
non-Malays.
"It is not helping the Malays because it is devaluing their property
... you think it's benefiting your race but it's not. It's working
against your race," Lee said.
Khalid Ibrahim, chief minister of Selangor state, told reporters at
the conference that authorities must be flexible in ensuring the quota
doesn't hurt the property sector.
However, he said there is no need to waive the quota system as many
Malays still need help to find affordable housing.
"We have to be practical. We need to balance the social and business
needs. We will work with the developers" to find solutions, he said.
http://www.washingtonpost.com
Washington Post
Thursday, November 13, 2008; 7:50 AM
Malaysia urged to scrap housing quota for Malays
By EILEEN NG
The Associated Press
KUALA LUMPUR, Malaysia -- Malaysian property developers on Thursday
called for scrapping the special housing privileges given to the
ethnic Malay majority, saying an open market is crucial to stimulating
growth especially now the economy is slowing.
Under a decades-old affirmative action program to help Malays increase
their wealth, developers are required to sell at least 30 percent of
homes in their projects to Malays at a discount.
Housing comes under state purview and in some areas, the quota runs to
as high as 70 percent.
Malays make up nearly 60 percent of Malaysia's 27 million people, and
also get privileges in state contracts, jobs and education under the
New Economic Policy which was started in 1971. Many minority ethnic
Chinese and Indians feel marginalized by the policy and critics say it
breeds cronyism, corruption and inefficiency because it mainly
benefits a well-connected Malay elite.
Eddy Chen, managing director of local developer Metro Kajang, said the
housing quota is a setback to the industry, particularly during the
current economic gloom when developers are already burdened by high
construction costs.
Speaking at a property conference, he said many developers find it
tough to sell the allocated Malay units and warned this may force them
to abandon projects.
Chen said if authorities cannot remove the quota they should impose it
only on low-cost housing.
The value of unsold property allocated to Malays nationwide is
believed to "run into billions of ringgit" and if released into the
market, will help stimulate sales, he said, without giving figures.
"We should do that now before it's too late. If we hold on to the
quota, developers will face cash-flow problem and may abandon their
projects," Chen said. "The government doesn't lose anything if it
(scraps) the quota."
Lee Kim Yew, deputy chairman of property developer Country Heights
Holdings, described the quota policy as "outdated."
He said many Malays don't want to buy the allocated units partly
because they are not allowed to resell them in the open market to
non-Malays.
"It is not helping the Malays because it is devaluing their property
... you think it's benefiting your race but it's not. It's working
against your race," Lee said.
Khalid Ibrahim, chief minister of Selangor state, told reporters at
the conference that authorities must be flexible in ensuring the quota
doesn't hurt the property sector.
However, he said there is no need to waive the quota system as many
Malays still need help to find affordable housing.
"We have to be practical. We need to balance the social and business
needs. We will work with the developers" to find solutions, he said.
http://www.washingtonpost.com