KUALA LUMPUR (Dec 10): SkyWorld Development Bhd (KL:SKYWLD) said on Tuesday that it has signed an agreement with the Penang state agencies to jointly develop the country’s largest affordable housing project that is valued at RM13 billion.

Under the joint development agreement signed with the Penang Development Corporation (PDC) and its subsidiary PDC Properties, the project aims to deliver over 38,000 Rumah Mampu Milik Madani (RMM) and Rumah Bakat Baru Madani (RBB) homes priced at between RM225,000 and RM420,000. Targeting the M40 (Middle 40% income) group or those with household income below RM11,800 a month, the first phase will be launched in 2026, and the entire project spans 10 years.

The signing ceremony held on Tuesday in Kuala Lumpur was witnessed by Prime Minister Datuk Seri Anwar Ibrahim, Housing and Local Government Minister Nga Kor Ming and Penang Chief Minister Chow Kon Yeow.

According to Chow, the project will be built over two plots in Seberang Perai. The first plot is a 34-acre site in Jalan Todak, Seberang Jaya, opposite the Penang Bird Park, while the second site is a 161.50-acre site in Batu Kawan near the Design Village Outlet Mall. From these two sites, approximately 34,000 units of RBB will be built and offered for sale on the open market.

RBB is the government’s latest housing initiative that will provide opportunities for non-Penang residents to own homes in Penang.

“This is a great opportunity for Penang natives and non-Penang residents working in the state to own homes at affordable prices,” said Chow in his speech.

He added: “The current RMM allocates 50% of the sales to Penang natives and the other 50% for the open market. For the open market units, 25% are allocated for registered voters in Penang and the other 25% for non-registered voters. This situation makes it difficult for non-resident workers who are employed in Penang to purchase homes in the state as only 25% of affordable homes are available to them, despite the rising migration to Penang. To address this, the state government through PDC and PDC Properties has introduced the RBB concept.”

RBB offers typical units measuring 900 sq ft with three bedrooms and two bathrooms, and will be equipped with facilities such as a swimming pool, gymnasium, multipurpose hall and playground.

Chow notes that both the RMM and RBB housing components for this project will be built using Industrialised Building System 3D — Prefabricated Prefinished Volumetric Construction (PPVC) technology, making Penang the first state in Malaysia to adopt PPVC technology in the construction of affordable homes, which is in compliance with the principles of environmental, social and governance (ESG).

Meanwhile, Nga urged more developers to take the initiative to implement more affordable housing projects to meet the target of building 500,000 affordable homes by 2025 under the 12th Malaysia Plan. “This effort requires a nationwide approach or the 4P principle — People-Public-Private Partnership.”

According to him, the government’s current achievement stands at 89% or 443,000 units of RMM that has been achieved through completed, ongoing and approved projects in the country.

“Various efforts are being doubled to ensure that the objectives of the ministry are achieved, especially through cooperation between the state government and private sectors towards the development for the welfare of the people.”

Anwar has also urged the parties to expedite this project. “Since this project was won through a tender process, we must ensure the costs are kept under control and lower than the initial projections, as agreed by SkyWorld. If all submissions are in order, I hope this project can be launched by the end of January or early February… That means in less than two months, all approvals must be granted and any issues raised must be addressed weekly with the project starting within two weeks.

“Normally it takes at least six months but I’m confident that [with better control over costs], we can speed things up. If we can do it in Kuala Lumpur in 45 days (Madani housing programme in Taman Desa), I don’t see why Penang can’t do it in 40 days. For the rakyat, there is an urgency when it comes to affordable housing. The government, the public and private sectors must work together to execute efficiently. There’s no reason to delay.”

According to SkyWorld CEO Lee Chee Seng, the project is targeted to be launched by end-2025 or early 2026. “Since this is a mandate given by the prime minister, I think the target [to receive approvals in 40 days] can be achieved. This is fundamental and will benefit the rakyat.”

Source: The Edge Malaysia, December 10, 2024