PR1MA Development Updates
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PR1MA Development Updates 11th August 2015 Why Was PR1MA Established? © PR1MA Corporation Malaysia. All rights reserved. CONFIDENTIAL & RESTRICTED Migration Trend - From Rural To Urban Areas The need to rebalance the government's rural-centric policies The Migration Trend RURAL URBAN GOVERNMENT FREE MARKET INTERVENTION LAISSEZ-FAIRE 28% Financial (Economic) Financial (Economic) • RISDA, FELDA, FELCRA, • User pay 66% MARA, DARA, KEJORA, FAMA 72% Societal 89% Societal • NGO, Minimal Government • JKK, Religious Leader, KEMAS, Penghulu, Ketua Physical Kampung, Pegawai Daerah • Physical Infra (e.g. roads electricity, water, waste, telco etc) – included Physical in the house price 34% • Road, Drains, Bridges, • Market based 11% Services (Utilities), Rural Perception: Development Ministry • Can manage to care for themselves 1957 1980 2010 • Can pay within free market • Can 'AFFORD' Rural Urban • No special structural support © PR1MA Corporation Malaysia. All rights reserved. 3 CONFIDENTIAL & RESTRICTED Urbanization In Malaysia Proportion urban & rural in Malaysia, 1950 – 2050 [%] In 2050, approximately 37 million Malaysians (87% of the population) will live in urban areas • Rapid urbanization entails: – Difficulties in managing growth in urban centres in a sustainable way2) – Challenge of managing expanding populations, securing sufficient public Urban & rural population in Malaysia, 1950-2050 [m] funding for the provision of social services, and dealing with demand and supply pressures on land, energy, water, and the environment 1) A country is considered to urbanized when over 50 per cent of its population live in the urban areas 2) Globally, it is estimated that over 70% of urban growth currently takes place outside formal planning processes Source: United Nations: World Urbanization Prospects: The 2011 Revision, International Federation of Surveyors: Rapid Urbanization and Mega Cities © PR1MA Corporation Malaysia. All rights reserved. 4 CONFIDENTIAL & RESTRICTED Consumer Survey – Financial Distress Majority of the urban working population is in FINANCIAL DISTRESS … SELF 13.76 mil Employed * ACTUALIZATION SELF ESTEEM 2 mil - 2 mil Active tax payers ** PAYS TAX BELONGING Non tax payers = 11.76 mil (Income less than RM5k/mth) SECURITY 8.46 mil 72% living in urban areas # BASIC NEEDS 11.76 mil NON TAX Approximately 400,000 to 500,000 Childcare/ PAYERS Students will leave Form Five every year Food Housing Transport Healthcare/ 35% 30% 20% Recreational etc 15% Source: * Dept. of Statistics (March 2015) ** LHDN (March 2015) # Consumer Survey 1) Based on professional consumer survey © PR1MA Corporation Malaysia. All rights reserved. 5 2) 100% of total monthly expenditure CONFIDENTIAL & RESTRICTED Consumer Survey – Financial Distress … and this financial distress is manifested in all the basic needs categories. Issues Food • Increasing cost of food • Kedai Rakyat 1Malaysia • Lack of quality affordable homes Housing • PR1MA & affordable homes • Lack of convenient public transports Transport • High cost of outpatient services • MRT, LRT • High cost of childcare Healthcare • Klinik 1Malaysia Childcare BASIC NEEDS • No left over (extra) for savings • Only 1% of the urban working population earning less than Childcare/ RM3k/mth have current accounts Food Housing Transport Healthcare/ 35% 30% 20% Recreational etc • To cover shortfall, urban dwellers incur high credit card debts and 15% consumer loans to cover 'BASIC NEEDS' e.g. Civil Servants take up high interest rate loans from Bank Rakyat © PR1MA Corporation Malaysia. All rights reserved. 6 CONFIDENTIAL & RESTRICTED YAB PM 2nd Reading of the PR1MA Bill November 2011 “Sekarang sudah tiba masanya pihak kerajaan mengimbangi salah satu keperluan asas masyarakat iaitu untuk memiliki sebuah rumah bukan sahaja bagi golongan berpendapatan rendah dan sederhana rendah tetapi juga bagi golongan berpendapatan sederhana yang rata-rata tidak mampu memiliki rumah di pasaran bebas di bandar malah pula tidak layak untuk memohon rumah rumah kos rendah dan mesra rakyat yang ditawarkan. Ini juga merupakan salah satu usaha kerajaan mengimbangi kekurangan pembekalan (supply) perumahan kos sederhana bagi memastikan program dan skim kewangan Rumah Pertama Ku yang telah dilancarkan tercapai. Negara memerlukan suntikan dimensi baru kepada hal ehwal berhubung kediaman untuk golongan berpendapatan sederhana di bandar. Sepertimana pendekatan bersepadu Kerajaan menangani masalah kemiskinan di luar bandar, pendekatan Kerajaan berhubung masalah tekanan hidup di bandar juga perlu mengambil kira faktor-faktor pembangunan fizikal dan sosioekonomi.” © PR1MA Corporation Malaysia. All rights reserved. 7 CONFIDENTIAL & RESTRICTED Key Milestones Date Item 04 Jul 2011 YAB Prime Minister launched PR1MA Program 29 Nov 2011 Dewan Rakyat passed PR1MA Bill 2011 23 Dec 2011 Dewan Negara passed PR1MA Bill 2011 30 Jan 2012 PR1MA Act 2012 received Royal assent PR1MA Act 2012 is enforceable in Peninsular Malaysia & Labuan 01 Jan 2013 Perbadanan PR1MA Malaysia was officially formed 12 Mar 2013 Board of PR1MA appointed by YAB Prime Minister 16 Apr 2013 1st Board Meeting © PR1MA Corporation Malaysia. All rights reserved. 8 CONFIDENTIAL & RESTRICTED Estimated Demand © PR1MA Corporation Malaysia. All rights reserved. CONFIDENTIAL & RESTRICTED Around 3.8 Million Households Could Potentially Be Registered 0 - 2.5k 2.5k - 10k More than 10k (B30) (M60) (T10) State Grand Total Do Not Own Own Do Not Own Own Do Not Own Own Johor 69,503 152,247 122,433 386,791 10,001 45,197 786,171 Kedah 33,525 167,441 39,473 193,794 1,413 12,247 447,891 Kelantan 30,986 140,850 23,611 115,648 1,078 10,331 322,503 Melaka 9,451 33,020 25,166 101,623 646 11,422 181,326 Negeri Sembilan 16,970 48,170 34,119 126,608 1,405 12,367 239,638 Pahang 36,910 93,129 58,984 153,966 2,905 10,168 356,061 Penang 25,800 64,356 52,802 203,432 1,831 34,646 382,867 Perak 53,604 211,438 50,178 235,575 1,644 20,130 572,568 Perlis 2,385 25,894 4,532 19,727 450 2,391 55,379 Sabah 61,341 162,487 77,294 192,290 7,160 25,646 526,217 Sarawak 38,259 174,457 58,264 220,381 4,862 35,976 532,198 Selangor 65,691 107,909 303,604 595,702 35,979 212,679 1,321,563 Terengganu 16,918 74,593 19,847 100,843 2,325 10,820 225,346 WP KL 24,269 12,207 146,486 113,060 19,037 70,190 385,247 WP Labuan 778 2,331 4,552 7,687 762 1,961 18,070 WP Putrajaya 771 0 22,452 385 6,842 963 31,412 487,157 1,470,525 1,043,793 2,767,508 98,340 517,134 National Total 6,384,457 1,957,682 3,811,301 615,474 Source: Household Income Survey 2012, Team Analysis, Market Intelligence Johor, Selangor & KL = 55% of Non Home Owners © PR1MA Corporation Malaysia. All rights reserved. 10 CONFIDENTIAL & RESTRICTEDwithin PR1MA Income bracket What Is PR1MA All About? © PR1MA Corporation Malaysia. All rights reserved. CONFIDENTIAL & RESTRICTED The Target Group PR1MA's target group is set at middle 60% (M60) of household income to address the existing assistance gap Distribution of households by income class, Malaysia, 1990,2009 & 2012 [RM / month] RM2,500 RM10,000 1990 PR1MA's primary focus 60.6% is on the sandwich group (i.e. M60, 25.9 household incomes 19.3 26.1 16.7 from RM2,500 to 13.8 11.1 10.2 9.7 7.4% 15.9 2012 RM10,000 ) which 2009 17.6 13.6 10.9 9.5 7.3 2009 requires government 2012 7.8 5.9 5% 1990 2.7 1.3 1.0 0.5 0.2 assistance to close <1,000 1,000 – 2,000 - 3,000 – 4,000 - 5,000 - 7,000 - > 10,000 their affordability gap 1,999 2,999 3,999 4,999 6,999 9,999 1,200 • Assistance gap exists for this sandwich group • Provision of high-end 90% of the SKIM PINJAMAN PERUMAHAN (KPKT) • Requires government-backed effort / initiatives to close their housing affordability gap properties population would are left to 1,500 • The existing schemes are insufficient to close be covered by market RUMAH MESRA RAKYAT (SPNB) said gap forces government- 2,500 assisted programs PROGRAM PERUMAHAN RAKYAT © PR1MA Corporation Malaysia. All rights reserved. 12 Source: 10MP, Economic Planning Unit and Department of Statistics – SurveyCONFIDENTIAL of Household & RESTRICTED Income Focus Is On Building A Community Not Just Brick & Mortar Continuous community development and maintenance is embedded within PR1MA communities to create inclusive and harmonious living After-school programs Key considerations • Social structures such as Local councils Resident Houses Committees community leader, block leader to be in place Places of Residents • Role of social structures to Worship develop community and Childcare empowered to enforce certain guidelines and rules prescribed Shops to ensure conducive living environments Playgrounds − Ensure safety Schools Clinics − Prevent overcrowding Transportation Community Community gatherings − Prevent vandalism and agriculture programs abuse of property Aid for the © PR1MA Corporation Malaysia. All rights reserved. elderly/disabled 13 CONFIDENTIAL & RESTRICTED Key Roles And Function • PR1MA is a statutory corporation formed by way of an Act in Parliament to provide affordable quality housing and integrated communities to eligible target groups • PR1MA is a quasi-regulator • PR1MA as a developer will supervise, plan and execute the design, construction, maintenance and operations of PR1MA communities • PR1MA will undertake demand analysis to identify present needs in order to monitor and manage the quality, supply and demand of PR1MA homes • Proposed to protect the brand of PR1MA homes by way of setting standards for developments and undertaking and/or enforcing implementation of such standards and developments • Proposed to set selling