ISIS ROUNDTABLE HOUSING A NATION – OUR EXPERIENCE

Dr. Kamarul Rashdan Salleh DSDK, MRICS, MBIFM, MISM Managing Director INTRO WHO WE ARE

SPNB established in 1997 as a subsidiary of MoF Incorporated. With over 15 years experience in housing industry, our current turnover is RM1 billion. We have 470 professionals and 42,000 registered contractors and supply chain partners

• To become a leading developer in delivering quality Viiision affor dabl e h omes to peopl e

• Committed to provide adequate affordable homes for Mission people in line with the National Housing Objectives, in the best quality and within the level of affordability by a society, especially the lower income

• HifAllHousing for All Motto INTRO OUR ROLE AND ACHIEVEMENT

RUMAH MAMPU PEMULIHAN RUMAH RUMAH MESRA KUARTERS RUMAH MANGSA MILIK TERBENGKALAI RAKYAT KERAJAAN BENCANA

COMPLETED COMPLETED COMPLETED COMPLETED COMPLETED 15,060 unit 24,945 unit 17,790 unit 62,629 unit 67 unit RM 1,302,091,134 RM 1.5 Billion RM 1.2 Billion RM 1.4 Billion RM 11.6 mil billion

CONSTRUCTION CONSTRUCTION CONSTRUCTION CONSTRUCTION CONSTRUCTIO 10,123 unit 3,094unit 6,041 unit 288 unit N RM 1.3 Billion RM 244 Million RM 392 MIL RM 120 mil 709 unit RM 77 mil SERVICE ADVISOR COMING SUPPLY 13,245 unit 3,959 unit 54 project RM257 MIL INTRO OUR DELIVERABLES

TYPE OF HOUSE STATE LOW COST LOW MEDIUM COST MEDIUM COST (unit) (unit) (unit) - - - 782 - 786 P. PINANG - 518 5 - 50 175 478 216 165 --- - 397 1,013 2,472 1,224 435 WP - - - MELAKA 1,625 - - N. SEMBILAN 277 1,006 379 112 1,024 1,014 WP - - 141 641 2,604 6,678 --2,115 PROJECT STUDY ALAM PRIMA SHAH ALAM

PROJECT : Alam Prima, Seksyen 22, Shah Alam, Selangor TYPE : 3 Bedrooms and 2 Bathrooms Apartment

TYPE : A TYPE : B TYPE : C TYPE : D AREA : 850 sqft AREA : 771 sqft AREA : 1,725 sqft AREA : 1,621 PRICE FROM : RM143,673 PRICE FROM : RM133,699 PRICE FROM : RM316,766 PRICE FROM : RM298,935

500 406 SEX 400 MALAY 300 250 CHINESE 177 200 MALE INDIAN 100 OTHERS FEMALE 5 11 5 0 RACE PROJECT STUDY ALAM PRIMA SHAH ALAM

PROJECT : Alam Prima, Seksyen 22, Shah Alam, Selangor TYPE : 3 bedrooms and 2 bathrooms Apartment PROJECT STUDY MUTIARA VISTA

PROJECT : Mutiara Vista, Jalan Jelutong, Penang TYPE : 3 bedrooms and 2 bathrooms Apartment

AREA : 650 sqft 300 248 PRICE FROM : RM75,000 250

200 MALAY 150 122 CHINESE 100 INDIAN 50 33

0 RACE

GENDER

224 181 MALE FEMALE PROJECT STUDY MUTIARA VISTA PENANG

PROJECT : Mutiara Vista, Jalan Jelutong, Penang TYPE : 3 bedrooms and 2 bathrooms Apartment PROJECT STUDY PLATINUM

PROJECT : Putatan Platinum Apartment, , Kota Kinabalu, Sabah TYPE : 3 bedrooms and 2 bathrooms Apartment

AREA : 850 sqft 300 283 PRICE FROM : RM158,080 250 194 200200 MALAY CHINESE 150 INDIAN 100 KADAZAN 50 12 1 OTHERS 0 RACE

SEX

262

280 MALE FEMALE PROJECT STUDY PUTATAN PLATINUM KOTA KINABALU

PROJECT : Putatan Platinum Apartment, Putatan District, Kota Kinabalu, Sabah TYPE : 3 bedrooms and 2 bathrooms Apartment PROJECT STUDY TAMAN KULIM UTAMA KULIM

PROJECT : Taman Kulim Utama, Kulim Industrial Park, Kulim, Kedah TYPE : 3/4 bedrooms and 2/3 bathrooms Houses

TYPE : Single Storey Medium Cost TYPE : Double Storey Medium Cost SIZE : 20’ x 70’ SIZE : 22’ x 70’ PRICE FROM : RM143,673 PRICE FROM : RM195,000

152 180 161 GENDER 160 GENDER 160 140 140 120 120 MALAY 100 MALAY 91 100 250 80 80 CHINESE 177 CHINESE 60 60 INDIAN MALE INDIAN 92 MALE 40 40 19 8 OTHERS 9 OTHERS 20 1 3 FEMALE 20 3 FEMALE 0 0 RACE RACE PROJECT STUDY TAMAN KULIM UTAMA KULIM

PROJECT : Taman Kulim Utama, Kulim Industrial Park, Kulim, Kedah TYPE : 3/4 bedrooms and 2/3 bathrooms Houses PROJECT STUDY TAMAN PERISAI WIRA KUALA KRAI

PROJECT : Taman Perisai Wira, Kuala Krai, Kelantan TYPE : 3/4 bedrooms and 2/3 bathrooms Houses

TYPE : Single Storey Terrace House TYPE : Double Storey Terrace House SIZE : 22’ x 70’ SIZE : 24’ x 70’ PRICE FROM : RM82,935 PRICE FROM : RM138,224

128 28 140 GENDER 30 GENDER 120 25 100 20 18 80 MALAY 84 MALAY 15 60 10 CHINESE 10 CHINESE 40 28 73 MALE 21 MALE 20 OTHERS 5 OTHERS 1 FEMALE 1 FEMALE 0 0 RACE RACE PROJECT STUDY TAMAN PERISAI WIRA KUALA KRAI

PROJECT : Taman Perisai Wira, Kuala Krai, Kelantan TYPE : 3/4 bedrooms and 2/3 bathrooms Houses LESSON LEARNT ISSUES AND CHALLENGES

CHALLENGE 1 Mortgage

CHALLENGE CHALLENGE 2 3 Deposit Ownership

PROJECT LESSON LEARNT MORTGAGE

• Impact of Bank Negara OPR = increase of loan rates • Protect buyer from fluctuation risk of interest rate • Responsible financing

BNM (FEBRUARY 2012) RESPONSIBLE FINANCING

Before offering a mortgage to potential buyer, banks and financial institutions shall consider all debt repayments and nett income after statutory deductions (i.e. Tax, EPF and SOCSO)

Affordable housing IMPACT –MORTGAGE IS FAR LESSER Mortgage 1 Household THAN BEFORE IF REPAYMENT BASED Expenses < 3 Income UPON NETT INCOME LESSON LEARNT DEPOSIT

• Struggling to save money for deposit (on top of EPF) • New buyer spend an additional RM26,000 in the first year of purchase on top of deposit and mortgage • Widening income disparities VS My First Home Scheme

VS LESSON LEARNT OWNERSHIP

• Hybrid approach through affordable mortgage + rentable rate in the form of a shared equity scheme • PR1MA offer affordable homes with 10 years moratorium • Target eligible and genuine buyers

Target Population Segment

• Knowledge workers , e. g. engineers, IT software developers, entrepreneurs • Young professionals, e.g. doctors, lawyers • Recently married families • Double Income, with both husband and wife working on full-time jobs • Joint household income of RM 3,000 per month • 40% o f Ma lays ia popu la tion be longs to this ca tegory, i.e. households LESSON LEARNT SUPPLY

• Supply side incentives and tax incentives for construction • Committed developer to build affordable homes i.e. 30 years is proposed to receive 10 years stream of credits to set income tax ppyayable which can be sold to capitalise benefits

RUMAH MY FIRST PERUMAHAN TYPE PPRT MAMPU OTHERS HOME 1 MILIK

PRICE BELOW RM 50K – RM 100K – BELOW RM 300K & = RANGE RM 50K RM 220K RM 220K RM 400K ABOVE

ALL PRIVATE AGGCENCY JPN SPNB PR1MA DEVELOPER DEVELOPER

BELOW TARGET BELOW RM BELOW BELOW RM ANY RANGE INCOME 3,000 RM 3,500 RM 6,000 1,000 19 LESSON LEARNT LAND

• Trend of speculative land investor buying plots with no planning permission for future gain then increase house price • Shortage of land for residential development • Brownfield / industrial land

KLANG VALLEY LAND

•Land Scarcity due to natural geographic constraint •DititiliDensity impact in planning LESSON LEARNT PLANNING

• Planning permission can increase the value of the land and this value can be ‘taxed’ to provide for public benefits • Change of goal post when applying for CF • Imppproper pgplanning requirements

LOCATION LOCATON LOCATION

• Houses are supplied at unattractive (but cheaper) location due to improper planning requirements, e.g. location with insufficient public transportation, poor amenities and lack of roads and other necessary infrastructure CONCLUSION SUCCESS FACTORS

Government

• Government partnership to encourage private sector Incentives Hybrid Framework • Hybrid framework for agencies • Combination of incentives, and companies to work together subsidies and contributions by to provide affordable housing beneficiaries where they can includinggp empowerment typicall y contribute 20%-40% of monthly income

Flexible Ownership Planning • Flexibility on size, format and • Zoning strategy for affordable structure of ownership through housing in the city centre by flexible mortgage and shared making available public lands ownership scheme as options or by attaching mandates to due to potential rising incomes planning permits for new development CONCLUSION BENEFITS Q&AQ & A