Housing Development And Policies In Malaysia Economics Essay

fellowship Development And Policies In Malaysia Economics Essay there be many of studies that pass water been d maven to study the lines faced by core income sort out to witness a category in Shah Alam, Selangor. For this study the police detective is foc exploitation much on the optic income company that hold back light touch difficulties in owning their own sign found on several dry contributes that we take a shit ga at that placed through and through and throughout this study. This literature review is focused on disposition of Housing Development and Policies in Malaysia, Affordability issues, Housing Provision by creation and Private sectors, Housing Price, In fitting Housing Al fixtures, the act of cheating to vitiate a suffer , House Location, and Insufficient Income. All these issues ar especi eachy related with our explore study, which is to identify the factor of wherefore gist income sort ar having difficulties in owning their own family. 2.1 Housing Development and Policies in Malaysia.The trapping policy involves a number of complex issues at presentadays. Malaysia is a hoidenish that has multi-cultural purchase inst sweep throughly with 3 basic racial-religious throngs. therefore, the accommodate industry has to take into consideration all these aspect in the festering of national lodging and planning. The admit and residential human body has been noniceable collect to their economic activities of these 3 diffe hire heathenish sepa arranges (burning, 2011). For example, in the past Chinese has been dominated business industry and they lives in town bea. Meanwhile, Malay spate were complacent with agriculture activities and living in rural beas while Indian hatful ar doing e pronounce endure located in rubber and palm oil estate. In identify to hold rid of these unbalance in term of economic of these 3 ethnic sort out, the organization has come out with one solution by introducing New E conomic polity (NEP) in year 1970 to change the stereotype. The reason wherefore NEP was introduced to foster national unity and nation-building through the eradication of poverty, disregarding of race, and the restructuring of society to eliminate the identification of race with economic function and geographic location (EPU, 2011). Malayan government has encouraged Malay people to migrate to urban shopping centres as part of NEP strategy to create a unsanded Malay commercial community in urban atomic number 18a (Tan, 2011). However, due to the increase rate of Malay people migrates to urban areas in 1980s, the hold for low-cost erect as well shows a signifi put forwardt take sharpen growth. solely a unappeasable shortage in inexpensive trapping has arisen. Generally, there are 2 alternative for the state to assist their citizen in caparison purvey and one of them is allocating living accommodations specifically to signs those are unable to contribute themselv es in the general market and an different one is to intervene in the functioning of the general market in order to bring up it more the likely to fulfil the housing motivefully of all kinsfolks (Aziz, et,al, 2010). Thus, in the efforts to shorten housing worry for Malaysian citizen curiously those low income groups, the government has theorise housing policies and programs to ensure that all drive home the nark to adequate housing. The main objective of housing policy in well-nigh countries was once obviously to build more houses. This was response to a lack of market-driven supply on a dapple of socially perceived large scale housing need (Tan,2011). A part from that, the introduction and the forming of housing policies for a country fix another aims, from another scope, pointed by Ismail Omar (2000) and Harvey (1987), such(prenominal) asa. To acquire the optimum used of present resources.b. To call sure the national backside owned a house.c. Gives guild line on new location.d. To hit sure special group of macrocosm peck owned base of operations such as elderly citizen.e. Steering the state and topical anesthetic political science to provide fair housing distribution.A National Housing Policy (NHP) is needed to provide the direction and basis for the planning and development of the housing sector by all relevant ministries, departments and agencies at the national, state and local levels as well as the head-to-head sector. Thus, according to Tan, 2011, among the early housing policy make by Malaysian government is to introduce- for the early time Malaysian conception (1966-1970) and Second Malaysian excogitation (1971-1975) Variety of programs designs to stir up welfare of all Malaysian regardless of ethnic background by providing improved housing, community facilities, welfare and other services.Third Malaysian design (1976-1980) To eradicate poverty and restructure the societyFourth Malaysian Plan (1981-1985) The continua tion of previous policyFifth Malaysian Plan (1986-1990) Housing programs are beingness implemented in the context of human settlement concept. Here, the social facilities is emphasised rather than the provision of basic infrastructural facilities.Sixth Malaysian Plan (1991-1995) Home owning within various income group is emphasize.Seventh Malaysian Plan (1996-2000) introduction of low-medium hail housing. According to Residential Property stock certificate Report, the house put can be categorize into low-cost housing ( below RM42,000), low-medium cost housing (RM 42,000-RM 60,000), medium cost housing (RM 60,001-Rm 100,000) and high-cost housing (RM 100,001). viii Malaysian Plan Priority is continue to be lend oneselfn to the development of low-and low-medium cost houses. Private and public sector were cooperating with each other to cope with housing command.Ninth Malaysian Plan (2006-2010) ensure low and low-medium income group leave shake up the access to adequate, to ne of voice and give wayable housing.Tenth Malaysia Plan (2011-2015) the government keistered to build 78,000 units of inexpensive homes throughout the country to meet the needs of the various groups, and another 38,942 units of PPR leave alone be built particularly the low-income groups and the move of squatters.If we go back into the previous year, the governments priority is towards the low-income level group of people. legion(predicate) programs and suffer has been launched to help them to sustain living and bring them up to from the wr etceteraed state. However, no specific policies are stipulated to exert the need and demand of snapper income group. Trapped between the low cost and high cost housing, the halfway income group need are not yet being uphold by the government in which they are in a situation that they can afford to buy a house but it is alone provided for the low-income group but they are in any case in a firm situation to compete in high-cost housi ng According to Housing and local anaesthetic Government Minister Datuk Seri Chor Chee Heung, he said that the housing needs of the middle-income group made up virtually 40% of the world of the people and are in need to be addressed urgently.2.2 Housing Provision by Public and Private sectors.In Malaysia, housing development and activities are overmatch to approval from higher authority from the relevant state and federal regimen except for individual or group housing (Tan,2011). Land conversion, supply for layout plan, building and infrastructure plans, planning of infrastructure and assessment on environmental impact with involvement of many government agencies, both at federal and local level are those processes that housing companies must go through before starts doing housing project for the benefit of people at large. Among those government department or agencies that requiring approval before housing project can be successfully implemented and build are Land and Mines d epartment, the land offices, Local Authorities, the Survey department, Telekom Malaysia, Tenaga Nasional, the Water Work department and town and bucolic Planning department. In addition to the interrogation made by Tan (2011), all housing development project must follow all instruction stated in the national housing policy that has been set to uphold the right and helps people to own a house such as Bumiputera quota, housing control costs, and standard build-up location for low-cost housing, and provision of public amenities for residential housing projects. The public sector plays roles in providing adequate and fulfilling the housing needs by allocating and providing public housing for lour income group and household and has been put as one of the countrys priority since the fiver Years National plans and the example can be seen in the foundation of Federal Land Development Authority (FELDA), Federal land integrating and Rehabilitation Authority (FELCRA), and Johore Tengg araa Developemtent Boar (KEJORA). A part from that, they also are responsible in providing public houses in urban areas through the foundation of various government and urban development agencies. However, by depending solo on public sector, make it bad for the government to fulfil the higher demand on housing provision for Malaysian citizen. Thus, the government need private sector to help them to provide more housing developments for the public. In order for the private company to engage in the build of housing, they must first obtain the license, sales and advertising permits from the land and Mines Department, District Land Office, Town and Country Planning Department and from local authorities and utility agencies who own the responsibility towards national water, electricity, road and telecommunication supplies.2.3 Affordability issues.Affordability is always the main issues being highlight by closely people who did not commit the opportunity to buy their own house. Sin ce housing industry is an important factor in Malaysian industry, the health of housing market is very important and today fathers impact to the affordability of household to own a house. It was argued that the word affordability is basically ground on the economic factor of the household itself and the second one is based on the financing of the social rented sector (Aziz, et, al, 2010). Between these 2, the former is prove to have a strong impact by the housing policy. This ascending issues regarding affordability problems in owning a house can be considered as one of the most controversial issues within developed or developing countries (Nguyen, 2005). Affordability cannot be described as simple as it seems because different people susceptibility perceived different miserlying of the word itself. Several attempts also have been tried in order to understand how and why affordability problem are existed. These problems have been continuing year by year, it is now becoming th e study(ip) concern among political leaders, town planners and the government (Hashim, 2010). Due to that rising issues, a precise measures has to be made to ensure all type of household especially those middle income group are able to enjoy and fulfilling their life-long investiture and also the need for nurse. The affordability in a narrow concept can also be perceived as related to household incomes, housing cost, housing availability, employment, maintenance of the existing low-priced housing stock and the pattern of new construction (Aziz, et, al, 2010). Some measures has been taken in order to give housing assistance to the needy especially to those lower income group and income below median whom were the recipient of social security recompenses to improve their housing affordability such as Projek Perumahan Rakyat Termiskin or PPRT. However, there were an increasing issues rising among middle income group whom were not take under the housing assistance provided by the g overnment. They were left wing alone without assistance and they have to make hard choice each to live in or stay in a house affordable with their income but way too far from their office and they have to seize higher transit cost or living in a house near town and pay higher rent or high housing price. Therefore, as the result they have to bear with 2 kind of difficulties here that involve high housing cost or high transportation cost. These spiralling housing issues especially happens in study cities has caused the unaffordability to own a house for middle income class group. Affordability problems can be viewed as operating at different levels, ranging from narrower direct experience of severe problem of poverty and homelessness, through an intermediate level of risk, to a broader problem of access to market (Aziz, et, al, 2010). The best meaning of affordable housing would be well defined as housing that was intended to meet the need of those group of people who earned inco me that are not sufficient to accept them to access appropriate housing market without any assistance. A complete definition of affordability of housing for middle income group were made by DR pallid Nor Azriyati Wan Abd Aziz, et, al through their research saying that the housing with payment no greater than 33% of their gross household income. Finding an affordable house has been the current study concern especially those who live in most major cities or town in Malaysia where many of them are having difficulties are having trouble to buy a house. With new exploding centres such as new townships, commercial hubs, industrial parks and office complexes result in increased number in working existence. And with that increase in cosmos in major cities and town areas, the shortage of affordable housing is now becoming more acute. Continuous efforts also has been do to ensure that Malaysian of all income levels depart have the opportunity to have access to adequate, lumber, and af fordable homes, particularly for the lower income group (Ninth Plan 2020, 2006-2010). However, those who are not include in low income group are having difficulties in having one scantily like we discover in the Kuala lumpur Structure Plan 2020 (CHKL, 2004) that does not include low medium/ medium cost housing category in the projection of houses unit to be built by year 2020. Although we sack that government has undertaken many housing plan to help middle income household group, but, specific policies has not yet been clearly stated. Only a half-size assistance and focus is done to attend the needs of middle income group. That is why those group were sedate facing their hard times searching for a house that suit with their household income here in Malaysia.2.4 Housing PricesThe housing price at several states in Malaysia has experienced a major expansion for the past seventeen year. According to Hashim (2010), the house pricing that reinforcement on continuing to increase year by year are influenced by location, nations income, cost of capital, stock prices and also the commonwealth change. As we grow in the era of globalization, the world has been changing so fast. As the population are increasing, the demand for an affordable price also increased. Since housing is the most basic necessity for people, its increase in price however, would directly give impacts towards the affordability of the nation at large especially in Malaysia nowadays which are in need of more suitable and affordable housing. Increasing housing price for the past few years are making it hard for them to own a house suitable with their household income. Generally, housing price is influenced by region given the geographic size and location of the state in Malaysia. Due to the differences in between each states economic disparity, the house price and household income leave alone extremely influenced the level of housing affordability. apart from that, the need for affordable homes has increased significantly due to Selangors rising population density, which is the highest in Malaysia. The states population growth rate of 3.17% surpasses the national average of 2.17%. It has 5,411,324 of residents. If immigrants were added into account, their population might be almost seven million. This has become a scrap for the state to provide for the peoples needs due to the vast expansion of population, including housing, as they estimated about 1.8 million houses are needed to meet the needs of the people as they advent 2020. According to Hashim (2010), Selangor which indicates among the most developed state in Malaysia have a high housing price as compared to other less developed states like Kelantan. According to him, at the national level, Selangor house price on average is 35% to 53% higher in between 1995 to 2006. Based on the study made in Selangor, the 480-sqaure feet studio apartment apartment located in the outskirt of town which was located in Seri Kembanga n, cost more than RM 230,000 excluding other maintenance charges. This huge hike in price, even though only just a small house has affected local people, especially the middle income household which made up the majority of the population. With the huge cost of housing, many of the low and middle income are forced to purchase their house out-of-town since they are not afford to pay high price in the urban area. As a result, they have to bear other problems which they have to spend more on transportation such as fuel or public transportation cost because it was quite far from their workplace. The reason why the price are keep on increasing is because there is no limitation made by the government to control the housing price since they are only have the power to decide which location for them to build houses. The housing price is on the responsibility of the developer itself but depending on land price at that time. However, according to State Executive Councillor, Mr Iskandar Samad, t hey have trying to control the location where the developer wants to build affordable houses for the middle income group. This is how the state government trying to fight back for the particular income group because without the assistance, middle income group will neer afford to compete and purchase in buying their own affordable house.2.5 Insufficient Housing AllocationsHousing is one of the basic necessities as shelter for human and the government is enthusiastic in ensuring the public would have a better access towards a better and affordable housing provision. Generally, houses supplied by the private sector have been sufficient for the high-income group. However, the house allocations for the needy group of middle income are still insufficient to meet the high demand of the ever growing population. The insufficient in allocation for this particular group would be caused by 2 factors, which are the issue of land provision by government and the refusal for the developer to build affordable house in the centre of the city (Free Malaysia Today, 2011). The government has all time, put the highest priority to give benefits to the public in which to build in mixed development, rather than building affordable house for them in the outskirts of town. However, with the inadequate land shared for the housing to build by the developer, the need to build more houses for the middle income cannot be made into reality. There is not enough land left to build affordable house in the cities. This is because, according to the building laws, thestate only has the powers to compel a developerto build low-cost and medium-cost housing if theplot of land earmarked for development measures10 solid ground or more (Free Malaysia Today, 2011). According to the law, developers will have toallocate 20 % for low cost housing, another20 % for low to medium, 10 % formedium housing and the other 50 % forothers. However, affordable housing is still being built outside town due to the ina dequate and unavailability of land bigger than 10 acres there. According to Jabatan Perumahan Negara (2011), with five acres of land in the city, building lowor medium-cost housing would mean a loss fordevelopers and in turn purchasers will suffer becausecontractors will be told to use substandardmaterials to cut costs. If they were to follow what the government suggest, which is by selling house at a lower and affordable rate but with high cost in constructing it, developers will end up making losses and stop building house in the cities. With this major issue, the state also worried that developer might end up using cheaper materials and probably hiring unskilful worker to prevent them from making losses. Thus, the housing construction does not meeting the accurate requirement made by the government and public would be suffered from buying a house with no character and they would have to buy or lease house far from their workplace. Thus, these insufficient allocations of afforda ble housing for middle income household in the cities can be considered as a major issues nowadays and have to be solved by government to uphold and to assist this group to have better access to a spacious, comfortable, yet affordable housing according to their income level.CHAPTER 3 explore METHOD3.0 IntroductionIn this part of research method, it consist of a report that explains all the procedures followed in the process of roll uping info prerequisite for the abridgment to meet our research objectives. Besides that, research method also tells the research worker how the study was carried out and also watch outs the outcomes of the study.3.1 Research Design.Our study was gather teaching that done to examine the problem faced by the middle income group to own a house in Shah Alam. The best approach to gather data directly for this study is by selecting randomly people especially the household lives in the busy city of Shah Alam. In this research, the questionnaires have be en used in gathering the data related. We have decided to die the questionnaires to our respondents personally in our research since it helps and enable us to get more reliable and accurate information. The purpose of this study is hypothesis testing. We want determine what is the reason or problem of hindrance faced by middle income group to own a house in Shah Alam. Other than that, we also use and add-on secondary data in our research to make it more complete in order to gather information such as journal, internet source and newspaper article.3.2 Unit of AnalysisAs this study wanted to identify the reason or problem of difficulty faced by middle income group to own a house in Shah Alam, thus, Unit of epitome refers to the respondent of this study. In the research, the unit of analysis consists of those people lives in Shah Alam and among working people. In our research area, we will aim for target respondents at Shah Alam especially in Seksyen 2 and 7.3.3 Sample size of itSa mple size is defined as the number of elements to be included in the study (Malhotra, 1999). In determining the sample size for our study, we have calculated the number of observation by referring to table formulated by Sudman (1970). Given the whole population, the suggested sample size was approximately 150. However the certain sample that was poised ended up with amounted to only 100 available responses. Thus, the sample size of our research study is 100 amounted to persons. The reason why we did this by choosing only 100 respondents is because the end result will be more accurate, easy to monitor and to make it easier for researcher to do their line of credit. In this research, we distributed 100 questionnaires to the household in Shah Alam area randomly especially in Seksyen 2 and Seksyen 7. These 100 respondents had represented the household to answer the question from the researcher. We, as the researcher are going to distribute the questionnaires at the area of our targe t group which is in Shah Alam.3.4 Sampling Techniques.Sampling refers to the process of selecting a sufficient number of elements from the population. Therefore, a study of the sample and understanding of its properties of characteristics is done and would make it possible for researchers to generalize such characteristics to the population elements (Sekaran, 2004).Then, after we successfully get to identify the target population, the appropriate sample distribution will be selected. The sampling technique that we, as the researchers will use in this research is called public lavatory sampling technique. Convenience sampling is a non- fortune sampling technique where subjects are selected because of their convenient accessibility and proximity to the researcher. Convenience sampling was used when avowedly random sampling is essential. This is where the researcher approach and ask questions to anyone who is available. This method is ready(a) and cheap. The convenience sampling is also known as unrestricted probability sampling which refers to anyone and equal chance of being selected as a subject.We have already decided to distribute 100 questionnaires to the household lives in Shah Alam especially those who lives in Seksyen 2 and Seksyen 7. In the forms of research, it would be ideal to test the wide population, but in this case, the population is too large to include any individual. This is the reason why we rely on sampling technique like convenience sampling, the most common of all technique.3.5 quantity / InstrumentationThe research instrument that was used in this study for the primary data is done by using questionnaire. The questionnaire was written in both languages which are side and Bahasa Malaysia and was used in order to get the related data regarding the problem faced by middle income group to own a house in Shah Alam. The questionnaire has been given to the selected respondent and they answered the questionnaire personally. The questions we re divided into five sections which are constituent A Respondent Profile, plane section B categorization of middle income group, sectionalisation C household preferences, Section D existing house, Section E problem of difficulty to own a house, and the last section is Section F affordability issues. The rationale in designing these questions was to explore views and perceptions of middle income group households towards current affordability and to determine the accessibility of the group to affordable housing.Table 3.1 Measurement / InstrumentationNoObjectivesConcepts/constructMeasurement1To determine the entailment kin between house price and household affordability.Employee performance is the job related activities expected of a worker and how well those activities were executed (businessdictionary, 2012).Likert weighing machine1-Strongly Disagree2-Disagree3-Neutral4- determine5-Strongly Agree2To determine the deduction kin between housing allocation and household afforda bility.Counter layout is an arrangement or a plan, especially the schematic arrangement of parts or areas. (fredictionary, 2012).Likert outstrip1-Strongly Disagree2-Disagree3-Neutral4- Agree5-Strongly Agree3To determine the significance relationship between attitude of household buyer and household affordability. go quality can be defined as the consumers judgment about an entitys boilers suit excellent or superiority (Zeithaml, 1987, Garvin, 1983 Hjorth Anderson, 1994) define services quality as a form of attitude, related but not akin to comfort, and results from a comparison of expectations with perceptions of performance.Likert Scale1-Strongly Disagree2-Disagree3-Neutral4- Agree5-Strongly Agree4.To determine the significance relationship between house location buyer and household affordability.Services quality can be defined as the consumers judgment about an entitys boilers suit excellent or superiority (Zeithaml, 1987, Garvin, 1983 Hjorth Anderson, 1994) define servic es quality as a form of attitude, related but not equivalent to satisfaction, and results from a comparison of expectations with perceptions of performance.Likert Scale1-Strongly Disagree2-Disagree3-Neutral4- Agree5-Strongly Agree5.To determine the significance relationship between household income and household affordability.Services quality can be defined as the consumers judgment about an entitys overall excellent or superiority (Zeithaml, 1987, Garvin, 1983 Hjorth Anderson, 1994) define services quality as a form of attitude, related but not equivalent to satisfaction, and results from a comparison of expectations with perceptions of performance.Likert Scale1-Strongly Disagree2-Disagree3-Neutral4- Agree5-Strongly Agree6.To determine the most significant problems that contributes to the level of household affordability towards household lives in Shah Alam.Customer satisfaction can be defined as a state of object in which the customers needs, wants, and expectations throughout the product of service life haven been met or exceeded, resulting in future repurchase and loyalty (Anton, 1996).Likert Scale1-Strongly Disagree2-Disagree3-Neutral4- Agree5-Strongly Agree3.6 Data CollectionIn this study, there are numerous and varieties source of data that can help in gathering suitable information. Some of these methods depend on the methodology and the theoretical assumptions used inthe research. There a trend for researcher to collect hard objective poem for example primary data and secondary data.3.6.1 old DataPrimary data are data self-contained and assembled specially for the research project hand. Usually primary data was collected by the researcher. The method that will be used under primary data is questionnare. This data is collected when secondary data is not sufficient and depends largely on the research objectives and varies from one problem to another. For this study, the primary data will be obtained through qustionnaires given to the target respon dents.A questionnaire will distribute to the respondents such as the household lives in Shah Alam, Selangor. After they have answered the entire question, it will be collected and the data will go through several process. The data that have been collected will be sorted, coded, entry, testing, presenting and lastly the data will be hit the booksd. The data for this survey can be use as information in making research.A part from that, we also will be doing direct interview with the person related and have a major knowledge in the housing arena to get more reliable knowledge regarding affordability of housing in Shah Alam.3.6.2 secondary coil DataSecondary data or historical data are data previously collected and assembled for some project other than one at hand. Its gathered and recorded by someone else prior to the current needs of the researcher. Its right away and cheaply. The method that we used under secondary data was article and journal. The information that gathered from these resources which can be online searching such as formal website of Kementerian Perumahan Kerajaan Tempatan, New Straits Times, The Malay Mail, Berita Harian, Utusan Malaysia and so on. It helps the reserachers to get information and data while doing this study. Another type is from online searching through internet that will provide a lots of information from journals, annual reports, thesis, previous reseacrh and etc. It is more economical and simple for the researcher to conduct her research.3.7 Data analysisFor this study, we used Statistical Package for Social Science (SPSS) 16.0 version bundle to analyze data. SPSS is a computer program used for statistical analysis. nearly of the researcher use SPSS software as a tool to analyze the data. In this research report, the researcher transform the raw data that we obtained from the questionaire into SPSS. Then, the researcher proceed to discuss the result of the analysis and interpretation. For this study, methods used are dependability analysis, descriptive analysis, Pearson correlation analysis and multiple linear regression analysis.Reli