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Penang to enforce strict measures on non-compliant developers and contractors

Property News/ 1 June 2024 No comments
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Penang will implement strict measures against developers and contractors who fail to comply with regulations, causing public distress and property damage. Penang infrastructure and transport committee chairman Zairil Khir Johari emphasized that actions such as stop-work orders and fines would be enforced in response to any violations.

This announcement came after Connie Tan Hooi Peng (PH-Seri Delima) raised concerns about disturbances from the construction of the Air Itam-Tun Dr Lim Chong Eu Expressway bypass (Package Two) in her constituency. Zairil confirmed that stern warnings had been issued to the project developer, stressing that non-compliance could lead to immediate stop-work orders or fines. He also mentioned that he chairs monthly progress meetings to monitor the project’s adherence to regulations.

On May 22, the design-and-build contractor for the bypass project, Consortium Zenith Construction (CZC) Sdn Bhd, received a stop-work order for violating regulations by working on public holidays, outside the permitted hours. The unauthorized work was not related to mitigation matters.

Responding to another question by Joseph Ng (PH-Air Itam) about measures to prevent flash floods along Lebuhraya Thean Teik near the project site, Zairil noted that the issue had been addressed. The developer has deepened existing sedimentation ponds and constructed additional ones to mitigate flood risks. The developer is also responsible for post-flood cleaning works.

Recently, debris from blasting works at the RM850 million Air Itam bypass construction site damaged two condominium blocks in Island Park, affecting property and vehicles. Nearby houses have also been impacted, particularly during rain, as work site residue flowed into residential compounds.

The bypass project, expected to be completed next year, aims to reduce the current 40-minute drive between Bandar Baru Air Itam and the Tun Dr Lim Chong Eu Expressway to under 10 minutes. Package Two includes three interchanges and involves upgrading the drainage system, existing roads, and utility relocation in the project area.

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Penang Mutiara Line LRT to feature scalable low- to medium-capacity system

Property News/ 31 May 2024 No comments

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Penang state government and MRT Corporation are exploring a low- to medium-capacity system for the Penang Mutiara Line light rail transit (LRT) project, Bernama has reported. The transport ministry’s procurement board will determine the appropriate LRT system based on passenger projections and state needs, according to state infrastructure transport and digital committee chairman Zairil Khir Johari.

Zairil emphasized that a high-capacity system like the Kelana Jaya LRT line, which accommodates 15,000 to 30,000 passengers per hour, is unsuitable for Penang. Instead, Penang will adopt a scalable system, initially operating with two-car trains, with the option to expand to three- or four-car trains in the future as demand increases.

The LRT’s detailed design will incorporate sufficient electricity resources, ensuring each station is connected to a traction power substation (TPS) to supply power to the trains.

Transport Minister Anthony Loke announced in April that construction of the Penang LRT project would commence in the fourth quarter of this year. The federal government has taken over the Penang LRT Mutiara Line project, which is projected to be completed by 2030.

Older stratified homes urged to apply for water tank installation assistance

Property News/ 31 May 2024 No comments
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Stratified homes, especially older housing schemes lacking water tanks, are being encouraged to apply for installations through local authorities, the Penang Housing Board, or the Penang Water Supply Corporation (PBAPP). This initiative was announced by State Housing and Environment Committee chairman Datuk Seri Sundarajoo Somu during the State Legislative Assembly at the State Assembly building in Light Street.

Sundarajoo highlighted that many buildings constructed before the Water Services Industry Act 2006 (Act 665) was enacted do not have rooftop or internal water tanks. The enactment of the Act in 2006 addressed these issues, but older buildings remain without these essential installations.

PBAPP now mandates the installation of water tanks with a minimum capacity of 300 gallons in both stratified and landed housing schemes. Sundarajoo urged Joint Management Bodies (JMB) and Management Committees (MC) to take the initiative to install these tanks by applying to local authorities or the Penang Housing Board.

Additionally, Sundarajoo mentioned the Penang Maximum 80% Maintenance Fund (TPM80PP), which provides financial support for housing maintenance. Under this scheme, the state government covers 80% of the expenses, with the remaining 20% borne by the JMB or MC, facilitating essential upgrades and maintenance in older housing schemes.

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Penang to enhance affordable housing guidelines

Property News/ 30 May 2024 No comments

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The Penang government, through the Penang Housing Board (LPNPP), is undertaking a comprehensive review and enhancement of the current guidelines for affordable homes (GPRMM). This initiative is aimed at improving accessibility to homeownership for young people and first-time home buyers, as emphasized by State Housing and Environment Committee chairman Datuk Seri Sundarajoo Somu.

During his winding-up speech at the State Legislative Assembly, Sundarajoo highlighted the significance of these revisions. He stated that the updated guidelines would facilitate easier access to suitable housing loans for prospective homeowners. Moreover, special incentives will be offered to housing developers to encourage the development of affordable housing projects, ensuring their sustainability.

The enhanced GPRMM guidelines are expected to be announced by the end of the year, marking a significant step toward addressing housing affordability in Penang. Sundarajoo also recommended that first-time home buyers struggling to secure loans from banks consider applying for a loan scheme under Syarikat Jaminan Kredit Perumahan (SJKP). This Federal Government initiative offers financing guarantees of up to 120% for houses valued at up to RM500,000, with loan tenures of up to 35 years. The scheme is particularly beneficial for low-income or middle-income youth and first-time home buyers who lack fixed incomes and payslips.

In addition to these measures, Sundarajoo announced that the Penang government will continue advocating for more People’s Housing Projects (PPRs) in the state. Penang, recognized as one of the highest tax-collecting states, has identified five potential sites for these projects, two on the island and three on the mainland. Preliminary assessments by the Local Government Development Ministry (KPKT) have led to the selection of a site in the central Seberang Perai district for the PPR project. This site is now awaiting funding approval from the Economy Ministry as part of the Fifth Rolling Plan (RP5) of the Twelfth Malaysia Plan (12MP).

These strategic efforts underscore the Penang government’s commitment to improving housing accessibility and affordability, particularly for the younger generation and first-time home buyers.

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Penang PPR tenants may extend leases for additional 3 years

Property News/ 28 May 2024 No comments

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Penang State Housing and Environment Exco, Dato’ Seri S. Sundarajoo, has announced that tenants of the People’s Housing Programme (PPR) with household incomes exceeding RM1,500 per month may still apply to reside in the same housing units for an additional three years, subject to consideration by the Penang State Housing Board (LPNPP).

This announcement came in response to a supplementary question posed by Sungai Puyu State Assemblyman, Phee Syn Tze, during the First Meeting of the Second Session of the 15th Penang State Legislative Assembly today.

“The State Government is willing to lease these houses to such categories (i.e., the 40 percent lowest income group, B40) for three years, with the hope that the economic status of these families can improve within that timeframe. If not, they can apply to rent the PPR for another three years,” explained Sundarajoo, who is also the State Assemblyman for Perai.

During the oral question session, Syn Tze highlighted that since May 1, 2022, the Federal Government had enforced a minimum wage of RM1,500 per month for all employers with five or more employees.

Referring to the enforcement guidelines, she inquired whether the State Government planned to amend some of the eligibility criteria for renting PPR flats, which currently stipulate that household incomes must not exceed RM1,500.

“Since the implementation of the RM1,500 minimum wage, many PPR tenants automatically no longer qualify to rent PPR units as they exceed the eligibility criteria set by LPNPP. Therefore, the existing income is insufficient to meet the family’s needs even if both husband and wife work. What are the State Government’s proposals and efforts to ensure the continued rental eligibility of these B40 groups in PPR units?” he asked, suggesting that LPNPP revise the existing PPR rental eligibility criteria.

Sundarajoo explained that LPNPP is currently conducting a review of the Household Income Limitation at the state level.

“This matter will be thoroughly examined before being brought to the State Authorities for approval. As of April 30, 2024, a total of 940 individuals have registered and are awaiting offers for rental housing (PPR),” he stated, while also mentioning that they are updating applicant data through the Housing Information System (SMP).

In related developments, Sundarajoo also disclosed that the State Government, through LPNPP, aims to provide a total of 220,000 Affordable Housing Units (RMM) by 2030 in the state, with 10 percent or 22,000 being distributed under the Rent-To-Own Scheme.

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