Compliance Charges Subsidised for Perak's Affordable Homes

Mangalesri ChandrasekaranAugust 2, 2016


According to the Perak Housing and Local Government Committee Chairman Datuk Rusnah Kassim, the Perak government is ready to subsidise the compliance cost of developers in order to create more affordable homes in the state.

Among the factors that contribute to the rising cost of housing is the compliance charges imposed by the developers to the buyers. But the developers shouldn’t be blamed as various agencies impose such charges to the developers and in the end, the costs are channeled towards the buyers.

Hence, to help and encourage developers to build affordable homes, the Perak government is planning to reduce the land premiums, waive development charges, as well as the National Water Services Commission (SPAN) charges. Currently, the compliance costs involved in a 20-acre low- and medium-cost projects will be subsidised.

Rusnah further noted that the newly commenced Perak Housing and Property Board will take charge of this.

The state government has targeted to build 35,500 affordable houses from 2013 onwards. And with the help of Real Estate And Housing Developers’ Association (Rehda), a total of 26,020 houses have been built to-date, while another 15,122 units are under construction.

“There is a total of 12,131 applicants on the State Secretariat’s Housing Department waiting list for low-cost housing,” she added.

Meanwhile, Rehda Perak Chairman Tony Khoo Boon Chuan added that the rising house prices can be controlled if the state and federal government work together to cut compliance charges, which is one of the main reasons for the price increment.


Mangalesri Chandrasekaran, Editor at PropertyGuru, edited this story. To contact her about this or other stories email


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