The First Malaysia Plan (1966-1970) was officially introduce Low-cost housing in “to promote the welfare of the lower income population” (Economic Planning Unit [EPU], 1965, p. 182), and implemented through the State with financial assistance from the Federal Government. Most of the low-cost housing was constructed to resettle squatter settlements in urban areas, and for renting purposes during the First Malaysia Plan, (Aziz, 2007; EPU, 1965). As reported, Chief Minister Datuk Seri Musa Aman had state that an extimated 38,000 squatter families are still occupying state government land and private land. The land that is suppose used to economic development in Sabah but the squatter hinder the process. This is showed that squatter settlement still a major problem in Sabah and will bring a problem to construction development in Sabah. Eventhough there are various programmes implemented by the Malaysian government together with private sector to provide houses for the low incomes families but the squatter settlement continue to grow. This issues due to inefficient allocation system. The squatter problem in Sabah can be solved by providing more low cost housing under PPR units through efficient and transparent allocation system.
One of the main roles of MHLG is to create harmonious and better livelihood for society through the provision of adequate, proper housing and must equipped with social and recreational facilities. The government has decided that home to be built by MHLG under People’s Housing Programme (PPR) must be people-centric. In addition, MHLG has to see to it that the bottom 40% of households families of less than RM2, 500 a month and squatters are able to live in permanent homes...
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...tervention in low cost housing allocation which could jeopardize the chances of genuine buyers. Under this new system, all states would use a standard application form to register for a low-cost house. in absence of a centralised database, there would be a possibility of one person may register at more than one state and therefore may acquire more than one unit of low-cost house at few different states. (Wan Nor Azriyati and Nor Rosly Hanif, 2005) alleged that there are few of purchasers of low-cost houses who rent the houses or sell the houses soon after purchasing it. This conduct may cause insufficiency of supply of the low-cost houses because the same purchasers may register again under the ORS. The existence of speculative buyers is considered as a constraint in controlling the ownership of low-cost unit which supposedly be held only by the designated person.
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