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Publisher ATSA Architects Sdn Bhd 45 Jalan Tun Mohd Fuad 3 Taman Tun Dr Ismail 60000 Kuala Lumpur Malaysia Website: www.atsa.com.my Email: [email protected]

Author Ar. Azim A. Aziz

Co-Author and Designed by Mohamad Haziq Zulkifli

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES TABLE OF CONTENTS Pages Pages 5.5.1 Numbers of Affordable Housings that Greater 73 List of Tables, Graphs and Figures 4 Kuala Lumpur Will Need in The Future 7 1.0 ABSTRACT 5.5.2 Land to Build Affordable Housings: 73 5.5.3 Density of Units To Be or Can Be Built in the 74 2.0 INTRODUCTION 8 Greater Kuala Lumpur Area 5.5.4 Authority Imposition and Requirements 76 9 3.0 BACKGROUND STUDIES AND FINDINGS 5.5.5 Future and Predictions 77 9 3.1 POPULATION OF MALAYSIA AND GREATER KUALA LUMPUR 5.5.6 Future of Science and Technology in Building 77 (KLANG VALLEY) 5.5.7 Working Together 78 15 3.2 AGEING POPULATION OF MALAYSIA 5.5.8 Architectural Design Solutions for Affordable 103 3.3 DEFINITIONS OF AFFORDABLE HOUSINGS 17 Housings 3.4 OVERVIEW OF AFFORDABLE HOUSINGS IN MALAYSIA 19 24 3.5 AFFORDABLE HOUSING PRICES IN MALAYSIA 6.0 FINAL OBSERVATIONS 120 3.6 STATE OF INCOME IN MALAYSIA 25 27 3.7 GROUP INCOME EARNERS VS HOUSING PRICES 7.0 BIBLIOGRAPHY 122

4.0 ANALYSIS AND DISCUSSIONS 33 4.1 OVERVIEW OF AFFORDABLE HOUSING IN GREATER 33 KUALA LUMPUR 4.2 FUTURE INCOME GROUP EARNERS 34 4.3 CASE STUDY: PUBLIC HOUSING IN SINGAPORE 40 4.4 HOUSING PRICES AND CONSTRUCTION COST IN GREATER 41 KUALA LUMPUR 4.5 GROWTH PERCENTAGE OF HOUSING SUPPLY AND 59 AVAILABLE HOUSING UNITS IN GREATER KUALA LUMPUR 4.6 SURPLUS OF HOUSING SUPPLY 61 4.7 PREDICTION OF HOUSING SUPPLY IN GREATER KUALA 62 LUMPUR

5.0 CONCLUSIONS AND RECOMMENDATIONS 68 5.1 CHALLENGES 68 5.2 POSITIVE APPROACHES 69 5.3 CONTRIBUTORY FACTORS ON RISING COSTS OF AFFORDABLE 69 HOUSES 5.4 APPROACHES TO CONTROL THE CURRENT HOUSING PRICES 69 5.5 RECOMMENDATIONS 71

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES LIST OF TABLES Pages Pages Table 1.1: Total household income, population and living Table 2.11: Cost breakdown for T20 terrace house 44 10 quarters (houses) in the Greater Kuala Lumpur and Malaysia in Table 2.12: Cost breakdown for T20 semi-D house 45 2016 Table 2.13: Cost breakdown for T20 bungalow house 46 Table 1.2: Malaysian population from 1957 to 2100 10 Table 2.14: Cost breakdown for M40 house 47 Table 1.3: Population of Greater Kuala Lumpur from 1957 to 13 Table 2.15: Cost breakdown for B40 house 48 2100 Table 2.16: Housing construction cost in Kuala Lumpur in 51 Table 1.4: Population growth assumption of Greater KL and 14 2015 Table 2.17: Average house prices in Kuala Lumpur from Malaysia from 1957 to 2100 52 Table 1.5: Malaysian age groups from 1957 to 2100 15 1999 to 2016 Table 2.18: Average house prices in Selangor from 1999 Table 1.6: Population growth and immigration rate in Malaysia 16 to 2016 53 from 1957 to 2100 Table 2.19: Number of existing houses in Greater Kuala Table 1.7: Housing price affordability rating 17 Lumpur 59 Table 1.8: Pricing ranges of various affordable housings 18 Table 2.20: Houses supply in Greater Kuala Lumpur 60 24 Table 1.9: Pricing ranges of low cost and affordable housings Table 2.21: Assumption of housing supply in Greater 62 25 Table 1.10: Income, housing price and affordability level Kuala Lumpur from 2020 to 2100 26 Table 1.11: Median monthly household income of Malaysian Table 2.22: Population of Greater Kuala Lumpur from 64 and Greater Kuala Lumpur population 2010 to 2020 Table 1.12: Population percentage of income groups in urban 28 Table 2.23: Assumption demands of affordable housings 65 Malaysia from 2020 to 2100 Table 2.1: Median household income of Malaysia and Greater 33 Table 2.24: Sample units of affordable housings. 66 Kuala Lumpur Affordability level is measured based on the income Table 2.2: Percentage of income groups in urban Malaysia from 34 requirements and offered prices Table 3.1: Mercer Quality of Living Rankings 2017 2020 to 2100 81 Table 2.3: Percentage of T20 income group in Malaysian urban 35 population LIST OF GRAPHS Graph 1.1: Malaysian population from 1957 to 2100, Table 2.4: Percentage of M40 income group in Malaysian urban 36 10 population based on data projection by Department of Statistics, Table 2.5: Percentage of B40 income group in Malaysian urban 36 Malaysia and UN Department of Economic and Social population Affairs Graph 1.2: Graph of the Malaysian population from 11 Table 2.6: Affordable housing schemes in Greater Kuala Lumpur 37 years 1950 to 2100, with the low variant stands at 26 Table 2.7: Comparison data of Greater Kuala Lumpur, 38 million, 41 million (medium variant) and up to 62 million Singapore and Hong Kong (high variant) in the year 2100 (UN Department of Table 2.8 : Comparative table of affordable housing schemes in 39 Economic and Social Greater Kuala Lumpur, Singapore and Hong Kong Graph 1.3: Population of Greater Kuala Lumpur from 13 Table 2.9: Project examples of land usage 41 1957 to 2100 Table 2.10: Cost breakdown for high rise T20 house 43

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Pages Pages Graph 1.4: Population growth assumption of Greater KL and 14 Graph 2.13: Average house prices in Selangor from 1999 53 Malaysia from 1957 to 2100 to 2016 Graph 1.5: Malaysian age groups from 1957 to 2100 15 Graph 2.14: Construction cost against the housing prices 54 Graph 1.6: Population growth and immigration rate in Malaysia 16 in Kuala Lumpur from 2005 to 2015 from 1957 to 2100 Graph 2.15: Construction cost against selling price of 55 Graph 1.7: Average land price in Kuala Lumpur from 1957 to 22 bungalow house n Kuala Lumpur from 2005 to 2015 2017 Graph 2.16: Construction cost against selling price of 56 Graph 1.8: Average land price in Selangor and Negeri 23 terrace house n Kuala Lumpur from 2005 to 2015 Sembilan from 1957 to 2017 Graph 2.17: Construction cost against selling price of high rise houses n Kuala Lumpur from 2005 to 2015 57 Graph 1.9: Pricing ranges of low cost and affordable housings 24 Graph 2.18: Construction cost per square metre in major Graph 1.10: Median monthly household income of Malaysian 26 and Greater Kuala Lumpur population Asian countries 58 Graph 2.19: Growth percentage of housing supply in Graph 1.11: Percentage distribution of group income earners in 59 27 Greater Kuala Lumpur from 1991 to 2010 urban Malaysia Graph 2.20: Percentage of vacant houses in Greater Graph 1.12: Population percentage of income groups in urban 61 28 Kuala Lumpur from 2000 to 2010 Malaysia Graph 2.21: Factors influencing vacant housing units 61 Graph 1.13: Median yearly household income vs housing prices Graph 2.22: Assumption of housing supply in Greater 62 29 in Kuala Lumpur from 1999 to 2014 Kuala Lumpur from 2020 to 2100 Graph 1.14: Median yearly household income vs housing prices Graph 2.23: Assumption demands of affordable housings 65 in Selangor from 1999 to 2014 30 from 2020 to 2100 Graph 1.15: Malaysian GDP growth from 1960 to 2020 31 Graph 2.24: Comparison of affordable housing prices 67 Graph 2.1: Percentage of income groups in urban Malaysia 34 from 2020 to 2100 LIST OF FIGURES 12 Graph 2.2: Land use breakdown for affordable housing projects 41 Figure 1.1: Malaysian population from 1957 to 2100 Figure 1.2: View of Kampung Baru in Kuala Lumpur circa 19 Graph 2.3: Total cost breakdown 1960’s Graph 2.4: Cost breakdown for high rise T20 house 42 Figure 1.3: The former Pekeliling flats in Jalan Tun Razak, K. 19 Graph 2.5: Cost breakdown for T20 terrace house 43 Lumpur Graph 2.6: Cost breakdown for T20 semi-D house 44 Figure 1.4 & 1.5: View of squatters in Kg Kerinchi, circa 20 Graph 2.7: Cost breakdown for T20 bungalow house 45 1990’s, (left) now being replaced by Bangsar South Graph 2.8: Cost breakdown for M40 house 46 development (right) in Kuala Lumpur Graph 2.9: Cost breakdown for B40 house 47 Figure 1.6: Land Price Per Square Foot (PSF) in Selected Areas of Greater Kuala Lumpur / Klang Valley 21 Graph 2.10: Housing prices vs construction cost in Greater 48 Figure 1.7: Map of Greater Kuala Lumpur or Klang Valley 32 Kuala Lumpur 49 Figure 2.1: Population growth in Greater Kuala Lumpur 63 Graph 2.11: Construction cost per square metre in Kuala from 2020 to 2030 Lumpur from 2005 to 2015 50 Figure 3.1: Conceptual housing area layout 75 Graph 2.12: Average house prices in Kuala Lumpur from 1999 to Figure 3.2: Quality of life indicators 2016 80 52

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Pages Pages Figure 3.3: Map of Greater Kuala Lumpur / Klang Valley 83 Figure 3.31: Elevation of a proposed affordable housing 112 Figure 3.4: Conceptual land demarcation of Greater Kuala 84 block Lumpur Figure 3.32: Layout plan of a proposed affordable 113 Figure 3.5: Land use of Greater Kuala Lumpur 85 housing project Figure 3.6: Major urban centres of Greater Kuala Lumpur 86 Figure 3.33: Proposed typical layout of affordable 114 Figure 3.7: Rail transit network of Greater Kuala Lumpur 87 housing units Figure 3.8: Public rail transit map of Greater Kuala Lumpur and 88 Figure 3.34: Layout plan of a proposed affordable its vicinity 115 housing project Figure 3.9: Highway networks of Greater Kuala Lumpur and its 89 Figure 3.35: Layout plan of a proposed affordable vicinity 116 housing project Figure 3.10: Conceptual layout planning of future township 90 Figure 3.36: Proposed typical layout of an affordable 91 Figure 3.11: Major activities in future township housing unit 117 Figure 3.12: Green lungs in future township 92 Figure 3.37: Proposed typical layout of an affordable Figure 3.13: Connectivity in future township 93 housing unit 118 Figure 3.14: Detailed layout planning of future township 94 Figure 3.38: Illustration view of a proposed affordable Figure 3.15: Major components of future township 95 housing project 119 Figure 3.16: Location of green parks /pockets in future township 96 Figure 3.17: Connectivity in future township 97 Figure 3.18: Aerial view of the future township illustration 98 Figure 3.19: Aerial view of the future township illustration 99 Figure 3.20: Aerial view of the future township illustration 100 Figure 3.21: Aerial view of the future township illustration 101 Figure 3.22: Aerial view of the future township illustration 102 Figure 3.23: Layout plan of a proposed affordable housing 104 project Figure 3.24: Aerial view of a proposed affordable housing 105 project Figure 3.25: Proposed typical layout of an affordable housing 106 unit Figure 3.26: Layout plan of a proposed affordable housing 107 project Figure 3.27: Proposed typical layout of an affordable housing 108 unit Figure 3.28: Aerial view of a proposed affordable housing project 109 Figure 3.29: Proposed typical layout of an affordable housing unit 110 Figure 3.30: Aerial view of a proposed affordable housing project 111 6

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES 1.0 ABSTRACT Providing affordable housing for the masses, plays a major role in the well-being of the population, contributing to the physical and mental health, education, employment, security and also the country’s political certainties or uncertainties. Some researched materials on the matter have been made and reported that 80 percent of the population now live in the urban areas that requires affordable housing. In Malaysia, the categories and tier percentages of the population have been divided into three groups; they are the T20 (top), M40 (middle) and B40 (bottom) groups. Research on the affordability of housing has been carried out by many government and non-government agencies as it is one of the key measurements of a country's social-economic stability. New approaches, be it immediate, temporary and permanent need to be formulated to address the short to long term housing needs, especially in urban areas. The issue of affordable housing is now more of national concern, particularly in urban centres in areas such as Kuala Lumpur, Selangor, Johor and Penang. Detailed study and planning on the living conditions with the objective to achieve a level of flexibility are needed to allow for the different levels of people with income disparities to be able to coexist together and peacefully. The kind of facilities and amenities proposed are also significant as to avoid the growth of potential social problems. Shared amenities can help the population to interact and be amongst friends regardless of creed, and race. The primary challenge is to provide adequate, livable and sustainable affordable housing to suit all levels of people living in urban areas that can survive the test of time. Affordable housing and its availability to own one unit per family will be the primary concern for the present and future generations in Malaysia until we reach a point where ample housing units can be built easily and readily available to cater the various income categories. However, not every household or persons can afford or do not want to be burdened with the permanency of buying a property. Other categories shall include affordable rental housing and social rented housing.

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES 2.0 INTRODUCTION The current situation of affordable housing market in the urban areas of Malaya achieved her independence from the British in 1957 and later with Greater Kuala Lumpur or Klang Valley, which is also the fastest growing urban the inclusion of Singapore, Sabah and Sarawak in 1963, it became Malaysia. conurbation in Malaysia is selected as a case study for this paper. It is also an However, Singapore left the federation in 1965 to form its own city-state attempt to find a solution to address the chronic shortage of affordable republic. Malaya had then been colonised in stages by the British for housing for the masses that are livable and conducive to propagate a civil, approximately 166 years, the Dutch ruled for 183 years since 1641 and the educated and matured society. The United Nations (UN) definition of Portuguese ruled for 130 years from 1511. Prior to the independence of affordable housing is defined as three times the annual household salary, Malaya from the British, there was never been an independent state called also known as the ‘median multiple’ formula. (Khazanah Research Institute, Malaya or Malaysia. It was commonly known as Persekutuan Tanah Melayu 2015). The median monthly household incomes are RM 3,000.00 for B40, RM (Federation of Malaya) consisted of the Federated and Unfederated Malay 6,275.00 for M40 and RM 13,148.00 for T20. (Department of Statistics Malaysia, States and was once part of the British colony, before becoming an 2016). It is hoped that the median monthly household incomes will rise yearly independent state. to the point that it will be at an acceptable level to live comfortably and In 1957, the population of Malaya was only 6.3 million, with 49.8 percent were grow into a highly matured society that will be peaceful, free, moderate and Malays, 37.2 percent Chinese, 11.3 percent Indian and 1.8 percent made of democratic. the other races (Chander, 1975). 60 years later, Malaysia’s population rose to 31 million, comprising 68.6 percent Malays and Bumiputeras, 23.4 percent Chinese, 7.0 percent Indians and 1.0 percent of the other races. (Department of Statistics, Malaysia, 2016). The population has increased by approximately 25 million people in 60 years. Around 75 percent of the population now lived in the major urban areas, concentrating in Kuala Lumpur, Penang, Selangor and Johor (United Nations, World Urbanisation Prospects, 2016). It is anticipated that in years to come the urban population will constitute about 80 percent of the population. Affordable housing is becoming one of the most important criteria in constituting an urban fabric that will propagate growth and other basic human necessities. The others would be jobs, security and a peaceful environment. Furthermore, it is also estimated that the future breakdown of the population will also change from the existing demographic with 72.1 percent Malays and other Bumiputera groups, 20 percent Chinese, 6.4 percent Indian and 1.5 percent of the other races by the year 2040 (Department of Statistics, Malaysia, 2016).

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES 3.0 BACKGROUND STUDIES AND FINDINGS The current situation of affordable housing market in the urban areas of 3.1 POPULATION OF MALAYSIA AND GREATER KUALA LUMPUR (KLANG VALLEY) Greater Kuala Lumpur or Klang Valley, which is also the fastest growing urban To date, the population of Greater Kuala Lumpur or Klang Valley stand at conurbation in Malaysia is selected as a case study for this paper. It is also an 7,750,300 people and slated to expand to approximately 10,000,000 people attempt to find a solution to address the chronic shortage of affordable by the year 2020. Taking into account of today’s population at 7,750,300 housing for the masses that are livable and conducive to propagate a civil, people, based on the figures supplied by the Department of Statistics educated and matured society. The United Nations (UN) definition of Malaysia (2010), there are about 1,830,000 households in Selangor, Kuala affordable housing is defined as three times the annual household salary, Lumpur and Putrajaya. To cater for 10,000,000 population by the year 2020, it also known as the ‘median multiple’ formula. (Khazanah Research Institute, is anticipated that the number of people will have to increase up to 2015). The median monthly household incomes are RM 3,000.00 for B40, RM 2,500,000 with at least 2,000,000 people that will need to live in affordable 6,275.00 for M40 and RM 13,148.00 for T20. (Department of Statistics Malaysia, houses in the next three years. However, based on our own projection the 2016). It is hoped that the median monthly household incomes will rise yearly population increase of Greater Kuala Lumpur to 10,000,000 people and the to the point that it will be at an acceptable level to live comfortably and expected population increased seem to be rather ambitious. We projected grow into a highly matured society that will be peaceful, free, moderate and that the population would only increase to approximately 8,700,000 people democratic. by the year 2020 and the approximate addition of only 949,700 people by the year 2017. To achieve the projected 10,000,000 population in 2020, the Greater Kuala Lumpur has to grow about 563,000 people per year, which is around 7.25 percent growth per year. However, based on a more realistic average annual population growth projection of the Greater Kuala Lumpur, which is about 2.6 percent each year, it is anticipated that by the year 2020, we can only achieve 8,720,900 people living in the Greater Kuala Lumpur area. To obtain the expected 10,000,000 population of Greater Kuala Lumpur, we also anticipate that it can only be achieved by the year 2028. By the year 2050, we anticipate the population of Greater Kuala Lumpur will be at 11,000,000 people. Whilst by the year 2100, we anticipate the population will be approximately 12,000,000 people living in the Greater Kuala Lumpur area. The total expected population of Malaysia will be between 40,000,000 to 60,000,000 people at its maximum, depending on the growth model used to project the country’s population growth.

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Listed in the below table is the data of total household income, population and living quarters (houses) in the Greater Kuala Lumpur region and Malaysia in the year 2016: (Department of Statistics Malaysia, 2017)

DATA SELANGOR KUALA LUMPUR PUTRAJAYA NATIONAL (MALAYSIA)

Median Household Income (RM) 7,225 9,073 8,275 5,228 Size of households 3.9 3.7 3.5 4.06 Total Households 1,830,000 6,396,174 Total Living Quarters (Houses) 2,066,396 7,380,865

Total Population 7,750,300 32,049,700 Table 1.1: Total household income, population and living quarters (houses) in the Greater Kuala Lumpur and Malaysia in 2016

Graph 1.1: Malaysian population from 1957 to 2100, based on data projection by Department of Statistics, Malaysia and UN Department of Economic and Social Affairs

YEARS 1957 1970 1980 1991 2000 2010 2016 2017 2020 2030 2040 2050 2057 2060 2070 2080 2090 2100

Malaysia 7,393, 10,860, 13,772, 18,709, 23,420, 28,119, 30,572, 32,049, 33,782, 38,062, 38,852, 41,100, 41,690, 41,995, 42,418, 42,059, 41,437, 40,778, 000 000 000 000 000 000 442 700 400 200 000 000 000 000 000 000 000 000

Table 1.2: Malaysian population from 1957 to 2100

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES 62,000,000 (-0.5 % growth rate)

40,778,000 (-0.2% growth rate)

26,000,000 (-1.15% growth rate)

Graph 1.2: Graph of the Malaysian population from years 1950 to 2100, with the low variant stands at 26 million, 41 million (medium variant) and up to 62 million (high variant) in the year 2100 (UN Department of Economic and Social

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 1.1: Malaysian population from 1957 to 2100

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Population estimation of Greater Kuala Lumpur / Klang Valley from years 1957 to 2100

Graph 1.3: Population of Greater Kuala Lumpur from 1957 to 2100

YEARS 1957 1970 1980 1991 2000 2010 2017 2020 2030 2040 2050 2057 2060 2070 2080 2090 2100 S’gor 1,012,9 1,625,6 1,426,2 1,642,7 2,009,8 5,502,1 6,380,8 6,715,6 7,620,4 8,406,8 8,465,6 8,454,7 8,516,4 8,559,0 8,593,2 8,619,0 8,636,2 29 20 50 71 93 00 00 00 00 00 48 32 42 24 60 40 78

KL 0 451, 937, 1,145,3 1,297,5 1,627,1 1,791,3 1,910,7 2,034,7 2,122,1 2,136,9 2,134,5 2,149,7 2,160,5 2,169,1 2,175,6 2,180,0 810 817 42 26 72 00 00 00 00 55 28 77 26 68 76 27

P’jaya 0000073,40086,900 94,600 105, 112, 112, 112, 112, 112, 112, 112, 112, 900 100 436 563 661 774 774 774 774

TOTAL 1,012,9 2,077,4 2,364,0 2,788,1 3,307,4 7,202,6 8,259,0 8,720,9 9,761,0 10,641, 10,715, 10,701, 10,778, 10,832, 10,875, 10,907, 10,929, 29 30 67 13 19 72 00 00 00 000 039 823 880 324 202 490 079

Table 1.3: Population of Greater Kuala Lumpur from 1957 to 2100

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Assumption growth rate of the national (Malaysian) population and the Greater Kuala Lumpur population from years 1957 to 2100

Graph 1.4: Population growth assumption of Greater KL and Malaysia from 1957 to 2100

YEARS19571970198019912000201020172020203020402050205720602070208020902100 Malaysia 7,393,0 10,860, 13,772, 18,709, 23,420, 28,119, 32,049, 33,782, 38,062, 41,503, 41,100, 41,690, 41,995, 42,418, 42,059, 41,437, 40,778, 00 000 000 000 000 000 700 400 200 100 000 000 000 000 000 000 000

Greater 1,012,9 2,077,4 2,364,0 2,788,1 3,307,4 7,202,6 8,259,0 8,720,9 9,761,0 10,641, 10,715, 10,701, 10,778, 10,832, 10,875, 10,907, 10,929, Kuala 29 30 67 13 19 72 00 00 00 000 039 823 880 324 202 490 079 Lumpur Table 1.4: Population growth assumption of Greater KL and Malaysia from 1957 to 2100

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES 3.2 AGEING POPULATION OF MALAYSIA According to the United Nations (UN), an ageing population can be defined as a demographic process in which the proportion of the country’s population of about 15 percent is comprised older persons aged from 60 years and above. The increase in life expectancy of the population changes in the population demography of a city and the country. Malay Mail Online (2016) reported that a male child born in 2016 can expect to live up to 72.6 years, compared to 71.9 years in 2010, while a female child, up to 77.2 years or up 0.6 years compared to 76.6 years in 2010. It is anticipated that by the year 2050, people aged 60 years and above will make up approximately 24 percent of the total population, as per the table below:

Graph 1.5: Malaysian age groups from 1957 to 2100

YEARS 1957 1970 1980 1990 2000 2016 2017 2020 2030 2040 2050 2057 2060 2070 2080 2090 2100 0‐14 years (%) 44.2 45.0 39.2 37.0 33.6 24.1 23.7 23 22 19 17 16.4 16.2 15.5 15 14.8 14.7

15‐60 years 50.8 50.0 55.6 57.4 60.1 67.6 66.5 66 65 63 59 56.6 55.5 54.2 53 51.3 50.1 (%) 60 years 5.0 5.0 5.2.0 5.6 6.3 8.3 9.8 11 15 18 24 27 28.3 30.3 32 33.9 35.2 above (%) Table 1.5: Malaysian age groups from 1957 to 2100

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES There are presently about 2,100,000 registered immigrants in Malaysia, of which over one million are likely to be unregistered. To boost the economy, the World Bank has suggested that a 10 percent net increase in low-skilled foreign labour might boost the country’s real GDP growth by up to 1.1 percent. Therefore, in future, we may still need immigrants to be part of the workforce to carry out works that are needed to be carried out low, medium or even high skill class workers to generate and expand the economy.

Graph 1.6: Population growth and immigration rate in Malaysia from 1957 to 2100

YEARS 19 19 19 19 19 19 19 19 19 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 20 21 57 60 65 70 75 80 85 90 95 00 05 10 17 20 25 30 35 40 45 50 55 57 60 65 70 75 80 85 90 95 00 Growth 3.0 3.2 3.1 2.5 2.4 2.4 2.8 2.9 2.6 2.4 1.9 1.7 1.3 1.4 1.2 1.1 0.9 0.7 0.6 0.5 0.4 0.3 0.2 0.2 0.1 0.0 ‐ ‐ ‐ ‐ ‐ rate (%) 0.1 0.2 0.2 0.2 0.2 ‐ Expected 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.3 0.4 0.8 0.7 0.9 1.0 1.2 1.4 1.5 1.6 1.7 1.8 1.9 1.9 2.0 2.1 2.2 2.3 2.3 2.3 2.3 migratio n (%) Table 1.6: Population growth and immigration rate in Malaysia from 1957 to 2100

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES 3.3 DEFINITIONS OF AFFORDABLE HOUSINGS Conversely, abnormally low values signal insecurity of tenure and can lead to The indicators and definitions of affordable housing vary across the world. a reduced willingness of the population to invest in housing, and which will The most common measure to indicate affordable housing is the price-to- provide as a result a lower than the necessary quality of housing. income ratio, more commonly known as the ‘median-multiple’. It was Subsequent empirical research by the UNCHS and the World Bank utilising developed in 1988 by the United Nations Centre for Human Settlement international data and adapted in the Annual Demographia International (UNCHS) and the World Bank under the Housing Indicators Program. Then, it Housing Surveys found that the ‘global norm’ for affordability was three times, was later used in the UN-HABITAT Housing Indicators Programme, which meaning that if the median price for the whole of a housing market was focused on monitoring the provision and quality of dwellings. three times the median gross annual household income, this signals a well- Khazanah Research Institute (2015) defines the median multiple is based on functioning housing market. the assumption that as housing prices become higher and above incomes of Most of all, it is imperative that the adequate and proper housing is the vital many people, a smaller proportion of households can afford to buy houses, measure to combat future social problems. It is worthwhile, to invest in with other factors holding constant. More importantly, deviations of this ensuring proper housing are constantly provided. However, we must also be indicator from global norms can signal serious distortions in the housing aware that each of these affordable housing units has a lifespan of market. When the housing value is excessively high, these distortions may approximately 30 years. After or before every 30 years, these units must be indicate that the housing sector is restricted in its ability to supply sufficient either refurbished or demolished to make a way for an updated living unit for housing to meet effective demand. In these instances, it has been found that a more conducive living to match the changing lifestyles. housing quality and space are depressed below levels typically found in countries with well-functioning and responsive markets.

The affordability rating formulated by Demographia (2015) is defined as such:

RATING MEDIAN MULTIPLE Severely unaffordable 5.1 and over Seriously unaffordable 4.1 ‐ 5.0 Moderately unaffordable 4.1 ‐ 5.0 Affordable 3.0 and under Table 1.7: Housing price affordability rating

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Currently, there are various definitions of affordable housing in Malaysia Hence, based on the below table, it can be summarised that the from the depending on the respective agencies, with the prices ranging from RM perspective of the Government of Malaysia, houses with the price tag of RM 42,000.00 up to RM 400,000.00. It can be inferred that from the perspective of 300,000 and below are considered as affordable housing. However, for some the Government of Malaysia, houses with the price tag of RM 300,000.00 private developers, RM 500,000 is considered ‘affordable’, as long as it is and below are considered as affordable housing. However, for some private listed as RM 1,000,000 and below. (Lim, 2016). developers, RM 500,000.00 is considered ‘affordable’, as long as it is listed as RM 1,000,000.00 and below. (Lim, 2016). Presently, most of these low cost and affordable units are of high density low or high rise apartments of about 650 to 950 square feet or units below 1,000 square feet. However, these units are three bedrooms with two bathrooms.

Currently there are various definitions of affordable housing in Malaysia depending on the respective agencies. These definitions are listed below::

AGENCIES PRICE RANGE FEATURES INCOME REQUIREMENTS Ministry of Federal Territories RM 63,000 ‐ RM 300.000 3 rooms, 2 rooms, 1 room, studio type

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES 3.4 OVERVIEW OF AFFORDABLE HOUSINGS IN MALAYSIA They were intially built without running water, electricity and sewerage Since the independence of Malaya in 1957, the provision of low-cost housing system. They are often built on a make shift single storey house to has become a priority of the government in its ‘Five Year National Plans’. To accommodate a family or families with their children. These types of houses date, there are eleven national plans in the period of 60 years. The plans are were prevalent in the 1960’s and were successfully reduced to almost zero in normally divided into a five-year plans. Government agencies were also recent years. The land they had squattered on were at times used to build directly responsible for providing housing for the poor in urban areas through affordable high and low-rise affordable housing. There are now almost zero the establishment of the respective state economic development squatter colonies within the Greater Kuala Lumpur or Klang Valley region, corporations and various urban development agencies, such as the Urban which is commendable as compared to many developing countries around Development Authority (UDA) and local authorities. (Shuid, 2016). the world. The reasons behind the building of squatters in the past were During and after the independence of Malaya, Kuala Lumpur and many mainly due to the following: urban areas were mainly consists of shanty homes or commonly known as 1. Lack of available affordable housings. squatters. The houses were simply built using timber with corrugated metal 2. Difficult structure to owning affordable housings. roofing and often in large colonies consisting of several hundred houses. 3. The lack of infrastructure to complement affordable housings. 4. Lack of land ownership. 5. Lack of long term planning in providing affordable houses

Figure 1.2: View of Kampung Baru in Kuala Lumpur circa 1960’s Figure 1.3: The former Pekeliling flats in Jalan Tun Razak, K. Lumpur (Dept of (v12gether.blogspot.my) Information)

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES To ensure that the private sector plays their part in constructing low-cost After the complete abolishment of the squatter colonies throughout many housing, the government through various state, local authorities had urban areas, the problem of proper well planned affordable housing has imposed 30 percent or in some instances up to 50 percent of the total become the next challenge. From the last two economic downturns, which provision for units built quota for the building of low-cost and affordable was in 1997 and 2008, there seems to be an acute shortage of affordable housing in every residential development. Ensuring that the targeted group housing. Price such of houses, (landed or strata) has risen tremendously to secures these houses, the government has also imposed an open registration the point that many could not afford to buy these houses. This is also to system. To be fair to all, a balloting system is often carried out to ensure that correctly reflect Malaysia as a developed nation status, which the there were no favouritism when selling these affordable housing units. There is government has aimed to obtain the status by the year 2020. The aim is to no specific quota or registered purchaser required for other housing promote 80 percent or more home ownership in Malaysia in many years to categories. Now in some areas, the number of affordable units built must come. equal to the number of high-cost houses, i.e. 50 percent affordable housing with 50 percent of free pricing houses. This approach has been carried out by allowing these units to be built in the high rise apartment units. In some instances, the high priced units partly subsidised for the construction of the low-end or affordable units.

Figure 1.4 & 1.5: View of squatters in Kg Kerinchi, circa 1990’s, (left) now being replaced by Bangsar South development (right) in Kuala Lumpur(lembahpantai.blogspot.my/ victorsia.iagent.my)

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES BUKIT BERUNTUNG RM 13.17 PSF (2012)

RM 31.90 PSF (2012) KAPAR

RM 126.81 PSF (2012) PUCHONG

RM 50.00 PSF (2012) KOTA KEMUNING KAJANG RM 37.93 PSF (2012)

BANGI RM 29.94 PSF (2012)

DENGKIL RM 48.10 PSF (2012)

RM 40.00 PSF (2012) LABU

Figure 1.6: Land Price Per Square Foot (PSF) in Selected Areas of Greater Kuala Lumpur / Klang Valley 21

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Prices of commercial and residential lands in selected areas in Kuala Lumpur, Selangor and N.Sembilan. The residential land prices can be further differed in various types of land titles, which are the leasehold, freehold and Malay Reserve land.

Graph 1.7: Average land price in Kuala Lumpur from 1957 to 2017

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Graph 1.8: Average land price in Selangor and Negeri Sembilan from 1957 to 2017

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES 3.5 AFFORDABLE HOUSING PRICES IN MALAYSIA Before the Eight Malaysian Plan (2001 to 2005), from 1957 up to 1998, and until now, only low-cost housings have been provided by the various federal and state government agencies. Beginning of 2001, provision of affordable housings has emerged to the increasing demands from the middle and low- income groups, comprises the Middle 40 (M40) and Bottom 40 (B40) The changes in housing prices can be seen in the following chart:

Graph 1.9: Pricing ranges of low cost and affordable housings

YEARS BEFORE 1970 1970 ‐ 1980 1981 – 1997 1998 – 2001 2001 – 2015 2016 Low cost housing price 5,000.00 – 12,000.00 12,000.00 – 18,000.00 25,000.00 25,000.00 – 42,000.00 30,000.00 – 42,000.00 30,000.00 – 42,000.00 (RM) Affordable housing 100,000.00 – 400,000.00 – price (RM) 400,000.00 752,000.00 Table 1.9: Pricing ranges of low cost and affordable housings

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES 3.6 STATE OF INCOME IN MALAYSIA In 2014, the median household salary rose 12.4 percent, but prices of houses in Malaysia have also had risen by 11.2 percent. The macro data have been further analysed into the respective states, and the multiple median rates have been obtained in the following table, based on the data collected in 2014 (Khazanah Research Institute, 2015). However, household income of Malaysians, particularly in the Kuala Lumpur region has increased from RM 645.00 in 1976 to RM 7,620.00 in the year 2014.

AREAS MONTHLY MEDIAN ANNUAL MEDIAN MARKET MEDIAN MEDIAN ALL‐HOUSE MEDIAN MULTIPLE AFFORDABILITY LEVEL INCOME INCOME PRICE PRICE AFFORDABILITY National (Malaysia) 4,585 55,020 165,060 242,000 4.4 4.1 to 5.0 Seriously unaffordable Kuala Lumpur 7,620 91,440 274,320 490,000 5.4 5.1 & Over Severely unaffordable Selangor 6,214 74,568 223,704 300,000 4.0 3.1 to 4.0 Moderately unaffordable Table 1.10: Income, housing price and affordability level

Median income is the amount that divides the income distribution into two equal groups, half having income above that amount, and half having income below that amount. Mean income (average) is the amount obtained by dividing the total aggregate income of a group by the number of units in that group.

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES However, household income of Malaysians, particularly in the Greater Kuala Lumpur region has increased from years 1957 until 2014:

Graph 1.10: Median monthly household income of Malaysian and Greater Kuala Lumpur population

YEARS 1957 1967 1970 1974 1976 1979 1984 1987 1989 1992 1995 1997 1999 2002 2004 2007 2009 2012 2014 Ntnl 150.0 145.0 166.0 227.0 308.0 429.0 719.0 738.0 816.0 1,077. 1,377. 1,724. 1,704. 2,049. 2,211. 2,552. ,830.0 3,626. 4,585. (M’sia) 0 0 0 0 0 0 0 0 0 00 00 00 00 00 00 00 0 00 00 (RM) S’gor 363.0 441.0 647.0 1,010. 1,049. 1,145. 1,572. 2,255. 2,850. 2,750. 3,144. 3,588. 4,046. 4,273. 5,353. 6,214. (RM) 0 0 0 00 00 00 00 00 00 00 00 00 00 00 00 00 KL (RM) 645.0 1,217. 1,180. 1,294. 1,753. 2,321. 2,850. 2,828. 3,364. 3,336. 3,697. 4,334. 5,847. 7,620. 0 00 00 00 00 00 00 00 00 00 00 00 00 00 P’jaya 4,288. 5,373. 6,486. 7,512. (RM) 00 00 00 00 Table 1.11: Median monthly household income of Malaysian and Greater Kuala Lumpur population

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES 3.7 GROUP INCOME EARNERS VS HOUSING PRICES The percentage distribution of different income groups in Malaysian urban areas, with M40, forms the largest group (43.19 percent), followed by B40 (32.79 percent) and T20 (24.02 percent). Further percentage distribution of group income earners in urban Malaysia is presented in the chart below. The large M40 income group indicates the large group of middle income earners in many urban areas of Malaysia, that has become the major boon of Malaysian economies since the 1980’s.

Graph 1.11: Percentage distribution of group income earners in urban Malaysia

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Graph 1.12: Population percentage of income groups in urban Malaysia

YEARS 1974 1976 1979 1984 1987 1992 1995 1997 1999 2002 2004 2007 2009 2012 2014 2020 T20 (%) 59.5 56.2 54.1 52.3 50.6 50.1 49.8 50.2 48.7 49.6 49.8 48.6 48.2 47.5 45.9 41.4 M40 (%) 59.1 31.4 33.3 34.4 35.2 35.3 35.7 35.6 36.5 35.7 35.6 36.2 36.5 36.9 36.9 45.0 B40 (%) 11.4 12.1 12.7 13.3 14.2 14.6 14.5 14.2 14.8 14.7 14.6 15.2 15.3 15.6 17.1 13.6 Table 1.12: Population percentage of income groups in urban Malaysia

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Graph 1.13: Median yearly household income vs housing prices in Kuala Lumpur from 1999 to 2014

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Graph 1.14: Median yearly household income vs housing prices in Selangor from 1999 to 2014

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES

Commodity crisis 1987

15 years 10 years 13 years 11 years 11 years 9/11 crisis to 2020

East Asian financial Sub-prime crisis crisis 1987 Graph 1.15: Malaysian GDP growth from 1960 to 2020

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 1.7: Map of Greater Kuala Lumpur or Klang Valley 32

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES 4.0 ANALYSIS AND DISCUSSIONS 4.1 OVERVIEW OF AFFORDABLE HOUSING IN GREATER KUALA LUMPUR The current approach in building housing units has created an imbalance for those who would like to own an affordable landed house or an apartment unit. A typical terrace house around 50 km radius from Kuala Lumpur (Metro / Greater Kuala Lumpur) presently cost about RM 600,000.00 to over RM 1,000,000.00 which is actually beyond the current affordability level. As compared to our neighbour, Singapore which has a land of approximately 719.1 square kilometres with a population of more than 5,000,000 people. They have successfully built affordable units for the population. It is anticipated the population of Singapore will grow to approximately 6,000,000 people in the future and plans are said to have been made to cater for the various income groups. The Greater Kuala Lumpur and the surroundings area are approximately 8,396 square kilometres and should be able to house more people, but at a price range that will be within reach of many people seeking affordable housings. At present, there seems to be a disconnect which has left our urban city of Greater Kuala Lumpur with a shortage in the ownership of affordable housings ownership by the measures of people living in the area. The population of the Greater Kuala Lumpur is currently 7,500,000 people and it is anticipated to grow to 12,000,000 in the next 50 years.

Based on the UN median multiple housing measures, and by using the household income survey data produced by the Department of Statistics, the affordable housing price should be formulated as per below:

AREAS MEDIAN HOUSEHOLD INCOME (RM) UN MEDIAN MULTIPLE PRICE INDICATOR (RM) National (Malaysia) 5,228 188,208 Selangor 7,225 260,100 Kuala Lumpur 9,073 326,628 Putrajaya 8,275 297,900

Table 2.1: Median household income of Malaysia and Greater Kuala Lumpur

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES 4.2 FUTURE INCOME GROUP EARNERS The current income groups are predicted to be shifted in the near future. As the household income increased, it may be possible that the new income groups are Top 20 percent (T30), Middle 60 percent (M60) and Bottom 10 percent (B10) in the years to come. Figure 4 shows the projected income groups from years 2020 to 2100.. As shown below is the projected income groups from years 2020 to 2100:

Graph 2.1: Percentage of income groups in urban Malaysia from 2020 to 2100

YEARS 2020 2030 2040 2050 2060 2070 2080 2090 2100 T30 (%) 59.5 56.2 54.1 52.3 50.6 50.1 49.8 50.2 48.7 M60 (%) 59.1 31.4 33.3 34.4 35.2 35.3 35.7 35.6 36.5 B10 (%) 11.4 12.1 12.7 13.3 14.2 14.6 14.5 14.2 14.8

Table 2.2: Percentage of income groups in urban Malaysia from 2020 to 2100

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES A further breakdown of the different income earners groups and the market property prices can be analysed into the respective groups of T20, M40 and B40. For T20 earners group, they can be defined as the country's top 20 percent income earners. Their median monthly income is RM11, 610.00 or a mean monthly income of RM14, 305.00 (Malaysiakini, 2015). Yearly income is RM 171,660.00 and above.

Assumptions of the percentage of different income group in Malaysian urban population respectively: T20 MONTHLY INCOME (RM) ANNUAL SALARY RANGE (RM) PERCENTAGE (%) E S T I M A T E D MONTHLY RELATIVE HOUSING PRICES IN INSTALLMENTS (RM) THE MARKET (RM) 333,333 ‐ 416,666 4,000,000 and above 1.0 >53,129.51 12,000,000 and above 250,000 ‐ 333,333 3,000,000 – 4,000,000 1.0 39,847.13 ‐ 53,129.51 9,000,000– 12,000,000 166,666 ‐ 250,000 2,000,000 – 3,000,000 1.0 26,564.75 ‐ 39,847.13 6,000,000– 9,000,000 83,333 ‐ 166,666 1,000,000 – 2,000,000 1.0 13,282.38 ‐ 26,564.75 3,000,000– 6,000,000 75,000 – 83,333 900,000 – 1,000,000 2.5 11,954.14 ‐ 13,282.38 2,700,000– 3,000,000 66,666 – 75,000 800,000 – 900,000 2.5 10,625.90 ‐ 11,954.14 2,400,000 – 2,700,000 58,333 – 66,666 700,000 – 800,000 2.5 9,297.66 ‐ 10,625.90 2,100,000– 2,400,000 50,000 – 58,333 600,000 – 700,000 2.5 7,969.43 ‐ 9,297.66 1,800,000 – 2,100,000 41,666 ‐ 50,000 500,000 – 600,000 2.5 6,641.19 ‐ 7,969.43 1,500,000– 1,800,000 33,333 – 41,666 400,000 – 500,000 2.5 5,312.95 6,641.19 1,200,000– 1,500,000 25,000 ‐ 33,333 300,000 – 400,000 2.5 3,984.71 ‐ 5,312.95 900,000 – 1,200,000 16,666 ‐ 25,000 200,000 – 300,000 2.5 2,656.48 ‐ 3,984.71 600,000 – 900,000 8,333 – 16,666 100,000 – 200,000 76.0 1,328.24 ‐ 2,656.48 300,000 – 600,000 TOTAL 100.0 Table 2.3: Percentage of T20 income group in Malaysian urban population

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES M40 refers to the middle 40 percent income earners between RM 3,860.00 and RM 8,319.00. The M40 group has a median monthly income of RM 5,465.00 or mean income of RM 5,662.00.

M40 MONTHLY INCOME (RM) ANNUAL SALARY RANGE (RM) PERCENTAGE (%) ESTIMATED MONTHLY RELATIVE HOUSING PRICES IN INSTALLMENTS (RM) THE MARKET (RM) 7,500 – 8,333 90,000 – 100,000 8.0 1,195.41 – 1,328.24 270,000 – 300,000 6,666 – 7,500 80,000 – 90,000 10.0 1,062.59 ‐ 1,195.41 240,000 – 270,000 5,833 – 6,666 70,‐000 – 80,000 13.0 929.77 ‐ 1,062.59 210,000 – 240,000 5,000 – 5,833 60,000 – 70,000 17.0 796.94 ‐ 929.77 180,000 – 210,000 4,166 – 5,000 50,000 – 60,000 22.0 664.12 ‐ 796.94 150,000 – 180,000 3,333 – 4,166 40,000 – 50,000 30.0 531.30 ‐ 664.12 120,000 – 150,000 TOTAL 100.0 Table 2.4: Percentage of M40 income group in Malaysian urban population

While the B40 income earners refer to households with income up to RM 3,855.00. Their median monthly income is RM 2,629.00 while the mean income of RM 2,537.00.

B40 MONTHLY INCOME (RM) ANNUAL SALARY RANGE (RM) PERCENTAGE (%) E S T I M A T E D MONTHLY RELATIVE HOUSING PRICES IN INSTALLMENTS (RM) THE MARKET (RM) 2,500 – 3,333 30,000 – 40,000 40.0 398.47 ‐ 531.30 90,000 – 120,000 1,666 – 2,500 20,000 – 30,000 40.0 265.65 ‐ 398.47 60,000 – 90,000 833 – 1,666 10,000 – 20,000 10.0 132.82 ‐ 265.65 30,000 – 60,000 833 and below 10,000 and below 10.0 <132.82 30,000 and below TOTAL 100.0 Table 2.5: Percentage of B40 income group in Malaysian urban population

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Affordable housing schemes in Greater Kuala Lumpur / Klang Valley

HOUSING SCHEMES PR1MA R U M A H SPNB ASPIRASI RUMAWIP PPA1M PPR RUMAH TRANSIT SELANGORKU 1MALAYSIA Providers PR1MA Corporation Selangor Property National Housing Ministry of Federal PPA1M Unit, National Housing National Housing Malaysia and Housing Board Company Berhad Territories Prime Minister’s Department, Department, (LPHS) (SPNB) Department Ministry of Urban Ministry of Urban Wellbeing, Housing Wellbeing, Housing Selangor State and Local and Local Development Government Government Corporation (PKNS)

Price Range RM 100,000‐ RM 42,000‐ RM 145,000‐ RM 193,000‐ RM 90,000 ‐ RM 30,000‐ (Monthly rent RM RM 400,000 RM 250,000 RM 752,000 RM 300,000 RM 300,000 RM 35,000 250) Built‐up Area 46 sq. m. 65 sq. m. 51 sq. m. 60 sq. m. 92 sq. m. 65 sq. m. 65 sq. m. (500 sq. ft.) – 700 sq. ft.) – (550 sq. ft.) – (650 sq. ft.) – (1,000 sq. ft.) ‐ (700 sq. ft.) – (700 sq. ft.) – 111 sq. m (1,200 111 sq. m. 97 sq. m. 74 sq. m. 140 sq. m. 79 sq. m. 79 sq. m. sq. ft.) (1,200 sq. ft.) (1,044 sq. ft.) (800 sq. ft.) (1,500 sq.ft.) (850 sq. ft.) (850 sq. ft.) Types of House Apartment (for Flat Apartment Apartment A p a r t m e n t (for Flat Flat Selangor/Kuala Apartment Selangor/Kuala Lumpur) Terrace Lumpur) Terrace Town House Terrace Semi‐D Bungalow Locations K u a l a Lumpur / Selangor K u a l a Lumpur / Kuala Lumpur / Kuala Lumpur / Kuala Lumpur / Kuala Lumpur Selangor Selangor Putrajaya Selangor Selangor (All over Malaysia) (All over Malaysia) (Also Labuan) (All over Malaysia) (All over Malaysia) Available Units 80,000 34,000 (estimated) 3,710 70,000 (estimated) 12,000 37,946 632 (estimated) Income RM 2,500‐

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Comparison of geographical areas of Greater Kuala Lumpur / Klang Valley (Malaysia), Singapore and Hong Kong

KEY FEATURES GREATER KUALA LUMPUR / REPUBLIC OF SINGAPORE HONG KONG SPECIAL ADMINISTRATIVE KLANG VALLEY (MALAYSIA) REGION (CHINA) Maps

Region(s) Selangor Singapore Island Hong Kong Kuala Lumpur Putrajaya Major Cities / Towns Kuala Lumpur Bukit Merah Victoria City Klang Jurong West Kowloon Subang Jaya Hougang Tsuen Wan Petaling Jaya Bedok Yuen Long Shah Alam Woodlands Tung Chung Area 8,396 sq.km. (3241.7 sq.mi.) 719.1 sq.km. (278 sq.mi.) 2,755 sq.km. (1,064 sq.mi.) Current Population 8,259,000 5,610,000 7,364,883 Density 984/sq.km. 7,697/sq.km. 2,673/sq.km. Population in year 2020 8,720,900 6,007,000 7,557,000

Table 2.7: Comparison data of Greater Kuala Lumpur, Singapore and Hong Kong

Singapore’s approach in addressing the needs of affordable housing has been studied and is regarded as a good method of providing the affordable housings for its population through their Housing and Development Board (HDB) programme. It had recognised the need to provide affordable housing through long term projections. It is just a comparison, as Greater Kuala Lumpur and Singapore are indeed different. Singapore is a city-state with limited land resources. Greater Kuala Lumpur is 11 times bigger than the size of Singapore. This shows that we have more land to build houses than Singapore. However, the city, state seems to have been able to manage the affordable housing concerns better than most countries, as it has to be efficient in its planning in order to remain as one the best city to live in.

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Comparison of affordable housing schemes between Greater Kuala Lumpur (Malaysia), Singapore and Hong Kong

COUNTRY MALAYSIA (GREATER KUALA LUMPUR / SINGAPORE HONG KONG KLANG VLLEY) Provider(s) Ministry of Federal Territories Housing and Development Board (HDB) Hong Kong Housing Authority National Housing Company Berhad Hong Kong Housing Society National Housing Department, Ministry of Urban Wellbeing, Housing and Local Government PPA1M Unit, Prime Minister’s Department PR1MA Corporation Malaysia Selangor Property and Housing Board Selangor State Development Corporation Price Range RM 30,000 – RM 400,000 S$ 75,000 ‐ S$ 489,000 HK$ 1,500,000‐ HK$ 10,335,640 (RM 223,653 ‐ RM 1,458,222) (RM 750,711 – RM 5,172,721) Built‐up Area 46 sq. m. (500 sq. ft.) – 140 45.3 sq. m. (487 sq. ft.) ‐ 37 sq. m. (398 sq. ft.) – sq. m. (1,500 sq. ft.) 115.3 sq. m. (1,241 sq. ft.) 160 sq. m. (1,722 sq. ft.) Types of House Flat Flat Flat Apartment Apartment Apartment Terrace Locations Across Greater Kuala Lumpur / Klang Valley Across Singapore in 26 housing estates Across Hong Kong in 177 housing estates in 10 municipalities Available Units 238,288 1,504,000 1,188,000

Income Qualifications

Total Households 1,803,000 3,200,000 2,150,000

Total Population 7,212,572 5,399,000 7,188,000

Table 2.8 : Comparative table of affordable housing schemes in Greater Kuala Lumpur, Singapore and Hong Kong

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES 4.3 CASE STUDY: PUBLIC HOUSING IN SINGAPORE Public housing in Singapore is managed by the Housing and Development Board (HDB), a statutory body under the Ministry of National Development of Singapore Government. The majority of the residential housing developments in Singapore is publicly governed and developed. These flats are located in housing estates, which are self-contained satellite towns with various basic amenities and facilties. There are varieties of flat types and layouts which cater to various housing budgets. HDB flats were built primarily to provide affordable housing for the poor and their purchase can be financially aided by the Central Provident Fund. Recently, due to changing demands, there were more up-market public housing developments in recent years. Historical Milestones In 1959, in its election campaign, the People's Action Party (PAP) recognised that housing required urgent attention and pledged that it would provide low-cost housing for the poor if it was selected. When it won the elections and formed the newly elected government, it took immediate action to solve the housing shortage. The SIT was changed to the HDB. In February 1960, the Housing and Development Board (HDB) was established to develop public housing and improve the quality of living environment for the masses in Singapore through the Five-Year Building Programme(from 1960 to 1965). The housing that was initially built was mostly meant for rental by the low income group. In 1964, the Home Ownership Scheme was also introduced to help citizens to buy instead of renting their flats. Four years later, the government decided to allow people to use their Central Provident Fund savings as down payment. However, these efforts were not successful enough then in convincing the people living in the squatter settlements to move onto these flats. It was after 25 May 1961, the day of the Bukit Ho Swee fire, that HDB's efficiency and earnestness won the people over. The HDB estimated that from 1959 to 1969, an average of 147,000 housing units—80,000 from the current deficit, 20,000 due to the redevelopment of the Central Area, and 47,000 due to population increase—would need to be constructed; an average of about 14,000 a year. However, the private sector only had the ability to provide 2500 per year, and at price levels out of reach of the low-income. The HDB set out to resolve the deficit. Between 1960 and 1965, the HDB built 54,430 housing units. Due to land constraints, high-rise and high-density flats were chosen. By 1965, HDB was able to overcome the worst of the housing shortage by providing low-cost housing for the lower-income group within the planned period of five years. Several reasons contributed to the success of the HDB. Firstly, the HDB received very strong support from the government, which allocated a large amount of funds to public housing. The HDB was also equipped with legal powers such as the power to resettle squatters. The hard work and dedication of Lim Kim San, the first chairman of the HDB, and other members of the board, also contributed to its success.

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES 4.4 HOUSING PRICES AND CONSTRUCTION COST IN GREATER KUALA LUMPUR Estimation of cost breakdown of construction and development cost of affordable housing in Greater Kuala Lumpur, as per analysis in the below chart.

FURTHER BREAKDOWN OF LAND USE DEVELOPMENT INFRA‐STRUCTURE GREEN SPACES PUBLIC AMENITIES AREAS Residential Road Public park Mosque Commercial Bridge School Mixed use Substation Police station Institutional Bus shelter Fire station Pedestrian Community hall walkway Recreational Retention pond facilities

Table 2.9: Project examples of land usage

Graph 2.2: Land use breakdown for affordable housing projects

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Estimation of cost breakdown for construction and development cost

Graph 2.3: Total cost breakdown

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Samples of total construction cost breakdown of the various types of housings in Greater Kuala Lumpur .

LEGEND ITEMS COSTS PER ACRE PER UNIT C O S T PER (RM) UNIT (RM)

5.2% (DENSITY 30/ACRE) 1.3% Land cost 2,178,000.00 R M 50.00 72,600.00 0.9% 8.9% psf 1.2% 7.4% Land conversion 326,700.00 15% of total 10,890.00 0.4% cost land cost Infrastructure 300,000.00 10,000.00 works Construction works 15,459,005.20 RM 250.00 515,300.17 (Building) psf Landscape works 100,000.00 3,333.33 63% TOTAL DEVELOPMENT 21,304,005.20 (excluding fees) Pre‐development 213,040.05 1% 7,101.34 cost Professional fees 1,810,840.44 8.5% 60,361.35 and reimbursable Goods and services 1,278,240.31 6% 42,608.01 tax TOTAL COST 24,606,126.00 820,204.20 Graph 2.4: Cost breakdown for high rise T20 house Table 2.10: Cost breakdown for high rise T20 house

Selling price per square foot (built up) in certain areas of T20 can fetch between RM 800.00 to RM 1,000.00 per square feet. A 1,500 square feet apartment in the vicinity of upscale Kuala Lumpur, can cost a price of up to RM 1,500,000.00. In areas of upscale Kenny Hills land prices can be as high as RM 450.00 per square feet or RM 19,000,000.00 per acre or in Hartamas Heights, the land prices can fetch up to RM 600.00 per square feet or RM 26,157,500.00 per acre. Land cost is a subjective matter, and the prices varies. It however, adds to the overall cost of the housing development significantly. In the city centre of Kuala Lumpur, land cost can only up to RM 3,500.00 per square feet or RM 152,467,000 per acre

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES LEGEND ITEMS COSTS PER ACRE PER UNIT COST PER UNIT (RM) (RM) (DENSITY 18/ACRE) Land cost 4,356,000.00 RM 100.00 87,120.00 psf 5.2% 0.5% 6.3% Land conversion 326,700.00 15% of total 18,150.00 0.4% cost land cost Infrastructure works 300,000.00 16,666.00 7.4% Construction works 15,459,005.20 RM 280.00 858,833.62 (Building) psf Landscape works 100,000.00 5,555.55 TOTAL DEVELOPMENT (excluding 59,541,705.20

0.9% 87% fees) Pre‐development 595,417.05 1% 11,908.34 0.1% cost Professional fees 5,061,044.94 8.5% 101,220.90 and reimbursable Goods and services 3,572,502.31 6% 71,450.05 tax TOTAL COST 68,770,669.50 3,820,592.75 Graph 2.5: Cost breakdown for T20 terrace house Table 2.11: Cost breakdown for T20 terrace house

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES LEGEND ITEMS COSTS PER ACRE PER UNIT C O S T PER (RM) UNIT (RM) (DENSITY 6/ACRE) Land cost 4,356,000.00 RM 200.00 726,00.00 psf 5.2% 2.7% 18% Land conversion 653,400.00 15% of total 108,900.00 cost land cost 1.2% Infrastructure works 300,000.00 50,000.00 7.2% Construction works 15,459,005.20 RM 354.89 2,576,500.87 (Building) psf Landscape works 100,000.00 16,666.66 TOTAL DEVELOPMENT 20,868,405.20 (excluding fees) 7.4% Pre‐development 208,684.05 1% 34,780.68 64% cost 0.9% Professional fees 1,773,814.44 8.5% 295,635.74 and reimbursable Goods and services 1,252,104.31 6% 208,684.05 tax TOTAL COST 24,103,008.00 4,017,168.00 Graph 2.6: Cost breakdown for T20 semi-D house Table 2.12: Cost breakdown for T20 semi-D house

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES LEGEND ITEMS COSTS PER ACRE PER UNIT C O S T PER (RM) UNIT (RM) (DENSITY 4/ACRE) Land cost 13,068,000.00 RM 300.00 3,267,000.00 psf 5.2% 39% 1% Land conversion 326,700.00 15% of total 1,960,200.00 cost land cost 0.9% Infrastructure works 300,000.00 75,000.00 Construction works 15,459,005.20 RM 354.89 3,864,751.30 7.4% (Building) psf Landscape works 100,000.00 25,000.00 TOTAL DEVELOPMENT (excluding 29,253,705.20 fees) Pre‐development 292,537.05 1% 73,134.26 7.4% 46% cost Professional fees 2,486,564.94 8.5% 621,641.24 0.3% and reimbursable Goods and services 1,755,222.31 6% 438,805.58 tax TOTAL COST 33,788,029.50 8,447,007.38 Graph 2.7: Cost breakdown for T20 bungalow house Table 2.13: Cost breakdown for T20 bungalow house

63.6% TOTAL DEVELOPMENT (excluding 10,957,951.40 fees) Pre‐development 109,579.51 1% 1,565.42 cost Professional fees 931,425.87 8.5% 13,306.08 and reimbursable Goods and services 657,477.09 6% 9,392.53 tax TOTAL COST 12,656,433.87 180,806.20 Graph 2.8: Cost breakdown for M40 house Table 2.14: Cost breakdown for M40 house

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES LEGEND ITEMS COSTS PER ACRE PER UNIT C O S T PER (RM) UNIT (RM)

5.2% (DENSITY 70/ACRE) 7.4% Land cost 2,178,000.00 R M 50.00 27,225.00

0.9% psf Land conversion 326,700.00 15% of total 3,267.00 28% cost land cost 1.3% 4.1% Infrastructure works 300,000.00 3,750.00 Construction works 8,053,251.40 90.00 psf 392,540.00 3.8% (Building) Landscape works 100,000.00 1,000.00 TOTAL DEVELOPMENT (excluding 6,830,100.00 fees) 49.7% Pre‐development 68,01.00 1% 683.01 cost Professional fees 580,558.50 8.5% 5,805.59 and reimbursable Goods and services 409,806.00 6% 4,098.06 tax TOTAL COST 7,888,765.50 78,887.65 SUBSIDISED AMOUNT 686,322.59 40%‐60% 42,000 – Graph 2.9: Cost breakdown for B40 house 48,0000 SELLING PRICE 7,202,442.90 30,000.00 – 42,000.00 Table 2.15: Cost breakdown for B40 house

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES According to Khazanah Research Institute (2015), theoretically, if the construction cost falls, it is expected that all housing prices would fall accordingly. However, this theory does not seem to reflect in the house prices and construction costs in Greater Kuala Lumpur from the year 2008 to 2014

Graph 2.10: Housing prices vs construction cost in Greater Kuala Lumpur

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES The construction cost for housings in Kuala Lumpur from 2005 to 2015, based on the data provided by Langdon Seah Malaysia (2016);

Graph 2.11: Construction cost per square metre in Kuala Lumpur from 2005 to 2015

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Construction costs for Kuala Lumpur in 2015 based on data supplemented by Langdon Seah Malaysia (2016):

BUILDING SERVICES TOTAL PRICES MIN PRICE (RM/m2) MAX PRICE (RM/m2) MIN PRICE (RM/m2) MAX PRICE (RM/m2) MIN PRICE (RM/m2) MAX PRICE (RM/m2) Detached houses 1,515 2,065 905 1,005 2,420 3,070 (mass housing) Detached houses (high 2,290 2,815 810 1,005 3,100 3,820 end) Terraced houses 745 1,030 175 290 920 1,320 Average standard 1,025 1,535 295 455 1,320 1,990 apartments, high rise Luxury apartments, 2,380 2,900 810 920 3,190 3,820 high rise Low cost housing 420 445 100 135 520 580 Low cost flats, low rise 550 600 150 200 700 800 (<6 levels) Low cost flats, high 615 710 205 260 820 970 rise (<15 levels) Table 2.16: Housing construction cost in Kuala Lumpur in 2015

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES The detailed house price index in Malaysia, according to house types, produced by the National Property Information Centre (NAPIC) (2016);

Graph 2.12: Average house prices in Kuala Lumpur from 1999 to 2016

YEARS 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 All house 239,8 265,3 272,5 283,3 290,0 307,9 329,9 359,1 393,2 378,7 402,8 431,1 491,1 576,9 644,2 690,5 739,1 772,1 (RM) 63 35 00 78 06 38 36 49 11 72 54 28 45 91 49 41 95 26 Terrace 245,0 249,5 270,0 278,9 309,0 317,1 332,9 362,2 393,3 378,8 401,5 426,0 518,5 585,1 657,9 709,7 767,6 797,4 (RM) 00 00 00 41 16 30 96 48 41 33 25 71 91 98 30 11 69 91 High‐rise 150,0 180,0 208,0 177,8 169,8 168,5 172,6 182,0 183,5 179,4 211,7 229,4 266,5 307,9 335,5 365,4 390,9 410,4 (RM) 00 00 00 40 85 06 40 68 77 75 68 81 20 83 17 20 49 87 Semi‐ 565,0 284,0 750,0 346,1 775,0 983,9 1,114, 1,220, 1,409, 1,105, 1,192, 1,408, 1,654, 1,979, 1,888, 1,876, 1,931, 2,091, detached 00 00 00 96 75 15 657 925 976 071 576 099 347 077 298 991 047 280 (RM) Detache 1,200, 1,287, 1,600, 1,301, 1,246, 1,420, 1,610, 1,800, 2,088, 2,145, 2,104, 2,177, 2,122, 2,721, 3,269, 3,506, 3,735, 3,954, d (RM) 000 500 000 663 516 197 102 059 362 431 564 861 618 061 007 261 281 250 Table 2.17: Average house prices in Kuala Lumpur from 1999 to 2016

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Graph 2.13: Average house prices in Selangor from 1999 to 2016

YEARS 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 All house 201,1 213,1 223,5 233,9 239,2 239,0 243,7 253,4 253,2 263,7 272,2 307,3 341,7 377,5 415,7 445,6 481,6 515,2 (RM) 71 05 47 89 67 18 42 81 25 54 85 58 91 36 59 40 31 77 Terrace 183,0 201,2 198,0 221,9 235,9 234,6 239,3 249,2 248,2 261,5 266,1 301,9 337,6 371,5 412,1 439,1 476,8 513,7 (RM) 00 57 00 86 25 57 60 65 26 01 36 16 36 86 37 77 36 73 High‐rise 130,0 180,0 138,2 186,8 142,2 136,0 134,8 135,8 134,7 125,3 146,1 301,9 162,8 194,5 204,0 220,6 247,4 264,2 (RM) 00 00 50 40 75 27 98 21 68 17 54 16 97 66 49 74 58 68 Semi‐ 480,0 420,0 420,0 388,9 509,9 563,7 534,9 570,4 582,9 566,3 591,5 668,6 816,3 856,7 906,0 1,009, 1,038, 1,059, detached 00 00 00 20 14 06 23 45 59 42 44 03 41 79 86 087 104 494 (RM) Detache 658,9 675,0 570,0 744,5 323,8 321,0 368,9 374,3 378,1 435,4 464,8 557,0 484,1 569,3 646,8 695,4 736,8 774,2 d (RM) 76 00 00 25 18 81 55 04 50 83 50 52 96 30 51 71 35 78 Table 2.18: Average house prices in Selangor from 1999 to 2016

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Construction cost against the housing prices in Kuala Lumpur from 2005 - 2015

Graph 2.14: Construction cost against the housing prices in Kuala Lumpur from 2005 to 2015

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Graph 2.15: Construction cost against selling price of bungalow house n Kuala Lumpur from 2005 to 2015

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Graph 2.16: Construction cost against selling price of terrace house n Kuala Lumpur from 2005 to 2015

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Graph 2.17: Construction cost against selling price of high rise houses n Kuala Lumpur from 2005 to 2015

Construction cost against the housing prices in Kuala Lumpur from 2005 – 2015, based on the detailed data provided by Langdon Seah Malaysia (2016) and National Property Information Centre (NAPIC) (2016), is stated in above diagrams. From the diagrams, the price of construction does not reflect the rapid increase in the cost of materials throughout the years. The price change difference was about 50 percent in 2015.

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Nevertheless, the construction cost per square metre prices in Malaysia is relatively lower as compared to other major Asian countries, which stands at USD 1,827 per square metre, as reported by the Global Property Guide (2016). The chart shows that the construction cost is the lowest as compared to other Asian cities, such as Hong Kong and Singapore, which stand at USD 25,551.00 and USD 13,748 per square metre respectively.

Graph 2.18: Construction cost per square metre in major Asian countries

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES 4.5 GROWTH PERCENTAGE OF HOUSING SUPPLY AND AVAILABLE HOUSING UNITS IN GREATER KUALA LUMPUR Based on the National Population and Housing Census of Malaysia 2010 by the Department of Statistics, Malaysia, there is a negative growth percentage of the housing supply in Selangor and Kuala Lumpur in the year 2000 to 2010 from the previous years of 1991 to 2000, which is 3.1 percent from the previous 3.9 percent, as shown in the below chart:

Graph 2.19: Growth percentage of housing supply in Greater Kuala Lumpur from 1991 to 2010

Besides, as reported by the Department of Statistics, Malaysia, (2010), as of 2010, there are 2,066,396 units of houses in Selangor, Kuala Lumpur and Putrajaya, as indicated in the following table:

REGIONS SELANGOR KUALA LUMPUR PUTRAJAYA TOTAL

No of houses in 2010 1,569,978 471,297 25,121 2,066,396

Table 2.19: Number of existing houses in Greater Kuala Lumpur

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES However, in the latest census by the Valuation and Property Services Department (2016), there are about 2,156,578 units of houses in Greater Kuala Lumpur, including the incoming and planned supply of houses, as stipulated in Figure 8. In theory, the number of houses can accommodate approximately 8,626,312 more people from the total population of 7,212,572 in the year 2016:

REGIONS SELANGOR KUALA LUMPUR PUTRAJAYA TOTAL POPULATION OF NO OF HOUSEHOLDS GREATER KL (2016) IN GREATER KL (2016) Existing supply of 1,382,355 422,133 6,816 1,811,304 7,212,572 1,803,143 houses (2016) Incoming supply of 167,104 36,406 10,429 213,939 houses (2016) Planned supply of 83,464 47,779 92 131,335 houses (2016‐2018) TOTAL 1,632,923 506,318 17,337 2,156,578

Table 2.20: Houses supply in Greater Kuala Lumpur

Therefore, based on the simpler calculations, the existing population 7,212,572 in Greater Kuala Lumpur, assuming four persons are living in one household; (approximately 1,803,143 units of houses), hence, there is a surplus of 8,161 units of houses. Nevertheless, housing supply in Greater Kuala Lumpur is predicted to be adequate in the near future based on the number of incoming and planned supply of houses, which are 213,939 and 131,335 respectively. However, the price of the surplus houses may be beyond the affordable level.

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES 4.6 SURPLUS OF HOUSING SUPPLY This has to lead us to the possibility that there will be a surplus of housing supply in the Greater Kuala Lumpur area. This is evident based on the census finding by the Department of Statistics, Malaysia (2010), as there are vast number of vacant houses still available due to various factors, it was attributed to housing units that were newly completed/for rent or for sale, which accounted for 44.3 percent. Terrace and flats/apartments/condominiums recorded high vacancy rates; i.e. 34.8 per cent and 28.0 per cent respectively.

Graph 2.20: Percentage of vacant houses in Greater Kuala Lumpur from 2000 Graph 2.21: Factors influencing vacant housing units to 2010

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES 4.7 PREDICTION OF HOUSING SUPPLY IN GREATER KUALA LUMPUR Based on the estimated figures of population in Greater Kuala Lumpur from the year 2020 to 2100, we establish some expected numbers of houses needed or to be supplied to accommodate four persons per household, as mentioned in the following chart:

Graph 2.22: Assumption of housing supply in Greater Kuala Lumpur from 2020 to 2100

YEARS 2020 2030 2040 2050 2057 2060 2070 2080 2090 2100 Greater KL 8,720,900 9,761,000 10,641,000 10,715,039 10,701,823 10,778,880 10,832,324 10,875,202 10,907,490 10,929,079 population Housing 2,180,225 2,440,250 2,660,250 2,678,760 2,675,455 2,694,720 2,708,081 2,718,801 2,726,873 2,732,270 demands for 4 nos. households Housing 4,360,450 4,880,500 5,320,500 5,357,520 5,350,912 5,389,440 5,416,162 5,437,601 5,453,745 5,464,540 demands for 2 nos. households Table 2.21: Assumption of housing supply in Greater Kuala Lumpur from 2020 to 2100

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 2.1: Population growth in Greater Kuala Lumpur from 2020 to 2030 63

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Greater Kuala Lumpur population statistics :

YEARS POPULATION OF POPULATION OF POPULATION TOTAL TOTAL PERCENTAGE SELANGOR KUALA LUMPUR OF PUTRAJAYA POPULATION POPULATION OF (%) OF GREATER KL MALAYSIA 2010 5,460,000 1,670,000 70,000 7,200,000 28,588,600 25.18 2011 5,600,300 1,693,000 77,500 7,370,800 29,062,000 25.36 2012 5,700,000 1,710,000 78,300 7,488,300 29,510,000 25.37 2013 5,900,000 1,720,000 79,700 7,699,700 30,213,700 25.48 2014 6,050,000 1,740,000 80,900 7,870,900 30,708,500 25.63 2015 6,178,000 1,780,000 83,000 8,041,000 31,186,100 25.78 2016 6,298,400 1,787,200 83,300 8,168,900 31,700,000 25.77 2017 6,401,100 1,863,700 89,800 8,354,600 32,392,400 25.79 2018 6,509,400 1,880,200 91,600 8,481,200 32,863,100 25.80 2019 6,614,000 1,895,800 93,100 8,602,900 33,325,500 25.81 2020 6,715,600 1,910,700 94,600 8,720,900 33,782,400 25.81

Table 2.22: Population of Greater Kuala Lumpur from 2010 to 2020

2016 8,168,900 2017 8,354,600 552,000/4 = 138,000 units needed within 5 years 2018 8,481,200 80 % or 110,400 affordable units in Greater KL will be needed to 2019 8,602,900 cater for M40 and B40 income groups 2020 8,720,900

2030 Projected 9,761,000 (from 2020 to 2030, an increase of 1,040,100 million or 104,010 ppl/year)

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Based on these figures, we quantify the number of affordable houses based on the largest urban income groups, the B40 and M40 that comprises 80% of the total population, based on the assumption of four people per household:

Graph 2.23: Assumption demands of affordable housings from 2020 to 2100

YEARS 2 0 1 7 2020 2030 2040 2050 2060 2070 2080 2090 2100 (existing) Assumption 2,557,500 2,180,225 2,440,250 2,660,250 2,678,760 2,694,720 2,708,081 2,718,801 2,726,873 2,732,270 on the demand for housing supply Affordable 1,744,180 1,952,200 2,128,200 2,143,008 2,155,776 2,166,465 2,175,041 2,181,498 2,185,816 housing supply for B40 and M40 Housings for 436,045 488,050 532,050 535,752 538,944 541,616 543,760 545,375 546,454 T20 Table 2.23: Assumption demands of affordable housings from 2020 to 2100

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Sample of selected affordable housing units in Greater Kuala Lumpur

AFFORDABLE LOCATION TYPE BUILT‐ MIN PRICE REQ MIN UN MEDIAN AFFORDABILITY MAX UN AFFORDABILITY HOUSING UP (RM) INCOME INCOME MULTIPLE LEVEL* INCOME MEDIAN LEVEL* SCHEMES AREA BASED ON REQ (RM) REQ (RM) MULTIPLE UN MULTIPLE (RM)

PR1MA Brickfields, Apartment 5 6 0 284,000.0 7,888.00 2,500.00 90,000.00 Severely 10,000.00 360,000.00 Affordable Kuala sq. ft. 0 Unaffordable Lumpur RUMAH Klang, Apartment 1,000 250,000.0 6,944.00 3,000.00 108,000.00 Severely 10,000.00 360,000.00 Affordable SELANGOR Selangor sq. ft. 0 Unaffordable KU SPNB Cyberjaya, Apartment 9 0 0 418,500.0 11,625.00 <5,000.00 180,000.00 Moderately 10,000.00 360,000.00 Unaffordable ASPIRASI Selangor sq. ft. 0 Unaffordable RUMAWIP Bandar Tun Apartment 7 5 4 300,000.0 8,333.00 <2,500.00 90,000.00 S e v e r e l y 15,000.00 540,000.00 Affordable Razak, sq. ft. 0 Unaffordable Kuala Lumpur PPA1M Kepong, Apartment 8 5 0 90,000.00 2,500.00 <5,000.00‐ 180,000.00 Affordable 10,000.00 360,000.00 Very Affordable Kuala sq. ft. Lumpur PPR Gombak, Flat 7 0 0 30,000.00 833.00 <2,500.00 90,000.00 Very Affordable 3,500. 00 126,000.00 Very Affordable Kuala sq. ft. Lumpur

Table 2.24: Sample units of affordable housings. Affordability level is measured based on the income requirements and offered prices

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Comparison of affordable housing schemes in Greater Kuala Lumpur

Graph 2.24: Comparison of affordable housing prices

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES 5.0 CONCLUSIONS AND RECOMMENDATIONS 5.1 CHALLENGES The current and upcoming housing supply in Greater Kuala Lumpur may be adequate to cater for the affordable housing market. This is mainly due to the intervention by the Federal government of Malaysia for Kuala Lumpur and Putrajaya and the state government of Selangor. The primary concern is to address the immediate shortage of housing needs. The number of units needed for affordable housing in Greater Kuala Lumpur varies from time to time.

Some the recurring issues and challenges in affordable housings: 1. Problems may arise in the existing affordable housings, such as the maintenance, owners’ mentality, bad design and inadequate facilities and amenities. In some affordable housing areas for the B40 group, maintenance and maintenance costs might not be fully paid by the owners, which will lead to the dereliction of their housing areas, resulting in the rise of unhealthy communities that will breed social problems. New laws are being enacted to make sure that the maintenance fees to be paid are made mandatory. 2. Designing affordable houses that will suit the ever-changing family lifestyles and needs. 3. Providing more affordable housings is the way forward in the real property market, simply to provide adequate housings. Government intervention by imposing requirements or subsidies may be required. 4. Lifespan or life cycle of affordable housings may only last around 25 to 30 years. After 25 to 30 years, refurbishment works may be required, or the units may need to be demolished to make way for a better and updated version of the future needs and to make affordable housing more livable. 5. Future affordable housings for the elderly population, which will approximately be up to 15 to 20 percent of the population in the near future. The Malaysian population is declining from 2.1 percent per annum growth to 1.5 percent per annum growth in 2016. For years to come, our ageing population will grow from 15 percent to 20 percent and, to 30 percent, by the end of this century, or by the year 2100. Rising costs (if any) of the building costs and land prices will contribute to the unaffordability in the overall costs of building these units to cater for the needs of the ageing population. How can we control these prices in order to be in tandem with annual inflation or the rising prices? Escalating land prices are one of the main reasons which had contributed to the rising costs of houses in the Greater Kuala Lumpur or Klang Valley. Cost control intervention must be in place to regulate prices. Infrastructure costs and the cost to provide amenities add to the overall costs to build townships. The number of people per household may be reduced from 4 people in a family to 2.1 to 2.4 people or on average to 3 people per house. The declining number of people per household follows the worldwide trend of many other developed countries throughout the world. 6. To prevent many of these low income houses from becoming slumps which will ultimately breed unhealthy living conditions before it becomes uncontrollable. 7. The building of infrastructure and efficient public transportation will be needed, in order to transport people living within the radius of 45 kilometres and in some cases slightly above the distance to be able to travel work or to the city centre of Kuala Lumpur in less than one hour. It is, in some instances, this trend follows the direction of many countries; drive until you can afford. In many cases, this term does not apply to housing within the Greater Kuala Lumpur as prices are still high in areas that are more than 20 kilometres from the city centre.

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES 5.2 POSITIVE APPROACHES The main aim of both the state government and the federal government is to address the acute shortages in the availability of affordable houses for sale. It is, probably, it is currently the best way to quickly solve the immediate housing problem. In the long run, it may not the best way to address to resolve many future problems that will need to be resolved or addressed in the future. However, the mixing of the various categories of the people is commendable. This will avoid class segregation within the various classes between the rich and the poor people within a community living in Greater Kuala Lumpur.

5.3 CONTRIBUTORY FACTORS ON RISING COSTS OF AFFORDABLE HOUSES From the study that we have attempted to establish, we can list many factors that had played a part behind why the prices of houses are rising and had reached to the point that it has become grossly unaffordable. The average wages of the middle income have only risen 11.7 percent annually since 2012. The average inflation has risen between 1.8 percent to 3.0 percent on average per year. In the last 30 years, the average inflation rate had been reported to be at 3.63 percent per year of 108.9 percent (Manan, 2017). However, the average buying costs of houses have risen by 200 percent since 1999. 1. Migration of people from the interior to the urban areas. 2. Lifestyle expectations. 3. Prices of construction, mainly labour, petrol/transportation, cement and steel works or other required materials. 4. Local authorities’ requirements and its required contribution. 5. Land price imposition and its escalating costs. 6. Profit expectations of more than 20 to 30 percent not including gains in land prices by developers. 7. Supply demands of prime housing in certain areas. 8. Locality, convenience to roads, buses and now the new transit systems throughout the Greater Kuala Lumpur area.

5.4 APPROACHES TO CONTROL THE CURRENT HOUSING PRICES Measures that have been implemented or recommended to remain affordable house prices within the ratio of three. 1. RGPT restrictions are imposed from time to time to curtail speculation of prices. 2. Bank Negara restrictions on loan applications and the percentage of the loan amount that can be dispensed to purchasers are according to their financial standings. 3. Disposal time limits to reduce rising price speculation. 4. Imbalance types of the building being built which led to the need to build PR1MA houses, Selangorku, etc. 5. A proper yearly survey must be carried out to ensure adequate, affordable housings are being supplied. To project the number of units according to the real needs to guide developers to match its supply with demand capacity. 6. A proper income rosters of individuals or households should be established and updated on a regular basis. To ensure the right people are allowed to build these affordable houses. To establish an up-to-date system from time to time.

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES 7. To allow for easy upgrading (of their type of dwellings) from time to time as the house owners may generate a higher income from time to time and will allow them to purchase better quality houses. 8. To encourage home ownerships to more than 80 percent. 9. To reduce costs for the change of land use; i.e. Premiums land cost has escalated, as they are contributing to the rising price of houses. 10. To use, try and tested or innovate building technologies to reduce the time for completion of all M40 and B40 housing units. These innovations should persist from time to time as to reduce costs, wastages and reduce its dependence on foreign labour. 11. To use competent contractors that ensure and reduce delivery time with quality workmanship. Delays will add to the cost of the building. 12. To improve the feasibility of selling affordable houses with the use of the IBS building system to ensure its cost reduction and practicality. More research, training and innovation are required to encourage better design to produce and building better affordable units. 13. To develop a network of roadways, transit system and other public transportation that will be able to allow easy access across the Greater Kuala Lumpur without having to be subjected to traffic Jams. Travel time should only be within 45 minutes to 60 minutes. A well-connected transit system such as MRT should be planned from now on to cater adequately the projected 12 million population living in the Greater Kuala Lumpur by the year 2057. London has 450 kilometres of transit rail service to cater about 9 to 10 million people. Kuala Lumpur has about 150 to 200 kilometres of rail services. More transit rail lines are needed to allow for affordable houses being built away from costly land areas. 14. To plan more large townships similar to Cyberjaya and Putrajaya that will take 30 years to be fully developed. The anticipated population of both of these townships will be approximately 500,000 people. Cyberjaya is roughly 7,000 acres and Putrajaya is about 11,000 acres. However, it will take 20 to 30 years to complete building these townships. Based on this, we shall eventually need about eight of such townships to be planned now in various parts of Greater Kuala Lumpur to accommodate an additional 4 million people by 2050. Plan connectivity to various parts of Greater Kuala Lumpur will still be the key in making such development a long term success. 15. To plan and build an adequate number of houses that will match the needs of the population. Suitable affordable houses have been neglected for some years looking at the map at a Greater Kuala Lumpur, it is a relief to know that there is enough under developed or areas with no development to accommodate the future growth of the population. 16. Salaries of the household have not increased as much as housing prices. Salaries must increase incrementally. 17. To control the runaway and escalating land prices throughout the Klang Valley. 18. Federal and state government subsidies to allow the masses to own houses. 19. Based on the vast experience of planning. Townships we can draw from the experience to totally planned many sustainable townships of the future.

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES 5.5 RECOMMENDATIONS

Building M40 and B40 houses that constitute around 80 percent in the next five, six, 10, 20, 30, 50 up to 80 years, to the year 2100 where the expected population to reach between 40 million to 62 million. These estimates are dependent on the future population growth model of Malaysia. The chosen model here is with the anticipation of the population will grow up to approximately 40,000,000 people.

Our approach is to establish a method or a plan that can address the acute shortage of affordable housings, especially to cater the housing needs for the B40 and M40 income earners of the urban population. In accommodating the prediction of population growth and the building of urban affordable housings which will be conducive for raising a family needs to be planned from now until a foreseeable time in the future, where the need will be enough or no longer needed.

In this case, we are using the fastest growing population region in Malaysia, the Greater Kuala Lumpur or Klang Valley which currently consists of the states of Selangor, Kuala Lumpur and Putrajaya, the region with the greatest concentration of population, work opportunities and a variety of lifestyles that can be offered to accommodate the needs of the various cultures and sub-cultures within an urban community. We hope to address any concerns in the changing needs of the occupants of the affordable houses on both scientifically and architecturally. We often refer to Singapore methods of how they have implemented affordable housings, which is a good start, but at the same time we must improve ways in providing a better affordable housing effectively and complement the designs from time to time, that will be unique to urban Malaysia.

Unlike many of its neighbouring countries within the ASEAN region except Singapore, Malaysia is in a very strong position in providing a formal setting of affordable housings rather than subjecting its citizens to be left with no other choice but to seek for an informal type of housing. The goal is to provide adequate housing through multiple schemes that can house the growing population. Many of these dwellings may have a life cycle of 20 to 30 years, which will eventually need to be repaired or rebuilt after or before it reaches an age where major improvements or refurbishment will be needed.

The type of affordable housing must also be established and the amenities required to be determined. Well-design, affordable housings will result in a better growth of the population and support a quality of life. It will indirectly improve the quality of life urban Malaysian.

Recent historical data had shown that recession period during the last 60 years from the establishment of Malaya / Malaysia had contributed to the excess supply of housing for the T20, B40 and B40 income groups. This is because of supply exceeds demand and that recessions in the past do create the reduction or the stagnation of wages or even unemployment.

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES The other challenge is to expand the M40 group to become more of an M60 group, leaving the categorisations to T20, M60 and B20. This will lessen the pressure in providing less subsidised housing for the B20 houses that are normally not well maintained in the long run.

To ensure that the prices of affordable housings in the future will remain affordable, few things must happen:

1. A critical increase of salaries to continue for the M40 group to allow for a percentage of these people to be in the T20 group and for 20 percent of the B40 to migrate to M40 group. 2. Land prices will not increase unnecessarily and ridiculously to a point it will make affordable houses becoming unaffordable. Selling prices offered must also be reasonable and not priced over the affordability. 3. Prices of the construction cost, especially materials over time will have to remain approximately the same. Historically, the prices of steel and concrete, oil and labour were contributing to the increase in construction cost. 4. A technique using certain forms of IBS system will help maintain costs and reduce the cost of construction. 5. Involvement of all parties, including local government, Federal government and banks to establish a structure to ensure that houses built to meet demand and also be able to be sold to the people in need in an area where these houses are located in the strategic and convenient areas. Houses must match the actual demand and expectation. Parameters to find a correct result in a survey on housing needs must be established and tested and carried out yearly or every two to three years.

From the population simulation, the population increase in Malaysia will grow at its median of a total 40 million people and the highest 60 million people, a difference of 20 million people. The future population projection will depend on the percentage of growth of the population. 2.1 percent will ensure natural replacement, below the 2.1 percent will cause the drop in the natural makeup of the future of a country, in this case, the population of Malaysia. To mitigate the shortage of population in the middle term, increase immigration may be needed.

Studies also show us that there is a need to conduct on affordable housing studies on affordable housing to be exact and accurate it must also be taken or carried out every three to five years, or on a yearly basis. At the same time, the other challenge is to control rising costs, particularly the land cost to stabilise the rising cost that has become grossly unaffordable.

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Detailed recommendations based on the study can be further discussed as below:

5.5.1 Numbers of Affordable Housings that Greater Kuala Lumpur Will Need in The Future: Based on the statistics on the projected population growth in the Greater Kuala Lumpur, the population will grow at about 195,000 people per year. Assuming there are four people per house, then the units required to house the population growth each year will be approximately 48,750 units. Of them, 80 percent must be categorised as affordable housing that is equivalent to 39,000 units per year or 117,000 units that needs to be built in the next three years (It takes approximately three years to build multi-level apartment units complete with CCC). To house 117,000 units, we shall need a density equivalent to 30 units per acre, or an area equivalent to approximately 3,900 acres. Malaysia’s population growth in total is estimated to grow at approximately 450,000 people per year. Up to 30% of the increase of the population will be living in the Greater Kuala Lumpur. In the long run, the increase in population may not be sustainable. However, this growth pattern has since been steadily declining in the last 20 years. The trend shows that it may decline further in the future.

5.5.2 Land to Build Affordable Housings: From our estimation, every year we shall need at least 1,300 acres of land to build affordable housings in the Greater Kuala Lumpur area at a possible density of 80 units per acre to meet an assumed demand which is based on our calculations. It may be on a high side but it can be revsed once a proper survey is done. This area does not include the needed infrastructure works and amenities. As a rule of thumb, we may require up to the same size of land to accommodate all infrastructural works and amenities which will help improve the quality of housing, and most importantly the quality of life. If this assumption is correct, then we may require maybe up to 660 acres a year to build 33,090 affordable housings per year in Greater Kuala Lumpur. This will provide dwellings up to 33,090 units per year to cater for the need to build enough affordable housing based on the average population growth of 2.6 percent in the Klang Valley region.

Within 30 years (from 2020 to 2050 (an assumption) – to cater to the growth of the population and to accommodate the growth in population, we shall need approximately the following area for building of affordable houses.

660 acres – 6,600 acres in 10 years (2020 to 2030), the area can accommodate up to 198,000 to 200,000 affordable housing units (200,000 x 4 people per family = 800,000 additional population in the Greater Kuala Lumpur). Areas for amenities are not included.

1,320 acres – 13,200 acres in 20 years (2030 to 2040), the area can accommodate for 396,000 to 400,000 affordable units (400,000 x 4 = 1,600,000 additional population in the Greater Kuala Lumpur). Areas for amenities are not included.

2,640 acres – 26,400 acres in 30 years (2020 to 2030), the area can accommodate for 792,000 to 800,000 affordable units (800,000 x 4 = 3,200,000 additional population in the Greater Kuala Lumpur). Areas for amenities are not included.

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES As a rule of thumb, it is generally accepted that the same amount of area must be allowed to accommodate all the required amenities to make up a sustainable township.

This is to suit a yearly growth of population in the Greater Kuala Lumpur which requires affordable housings for the median income category of the population, which form the income earner groups of M40 and B40. Without the proper planning, social problems and dissatisfaction amongst the population will probably grow.

Further analysis may be needed to carry out on a yearly basis to further study if the assumptions are correct and that it will allow the planners to adjust any misjudgments from time to time.

5.5.3 Density of Units To Be or Can Be Built in the Greater Kuala Lumpur Area

2.6 percent growth x 7,000,000 = 182,000 x 80 percent of the units for affordable category = 145,600 / 4 = 36,400 affordable units that will be required per year = 36,400 / 100 density units per acre = 364 acres are required per year to accommodate affordable housings only.

Density for affordable housings can be up to 110 units per acre or more for standalone development in Selangor. While in Kuala Lumpur, the building unit density could be much higher and up to 250 units in its density per acre. This depends on the area and the demand for such development at the centre of the city.

For example, a township development of 100 acres. A 100-acre development the density would be 30 units per acre, then the maximum units that may be built will be up to 3,000 units which can also house a population of 12,000 people.

If 3,000 units are to be built, then 50 percent or 1,500 units will be of an affordable type, and the remaining 1,500 will be reserved for higher cost dwellings.

For Selangor, in some areas, it is now a requirement that the number of units built must be at least 50 percent of the to be affordable and the remaining 50 percent can be built to cater for the higher cost housings.

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES A conceptual example of the situation is per explained below:

13.6 acres for 50 acres Affordable 1,500 for infra and 36.4 amenities acres for Free-pricing works 3,000 units

100 acres of land at 30 units density

Figure 3.1: Conceptual housing area layout

Some of the important elements must be monitored and regulated: 1. To regulate price increases of land costs and some of the construction materials. 2. To regulate prices of building materials, especially the price fluctuations of cement and steel materials that are needed for construction. 3. To gradually raise the income of the masses for them to earn a higher income to afford even higher priced units. Provided that the unit prices of these houses do not increase more than their raised wages. 4. To reduce construction time by using fabrication or industrialised building system (IBS) or a hybrid system. More research and incentives are required to ensure future housing are built with the most efficient techniques and with high quality. 5. Approval time by local authorities must be accelerated. 6. Better and experienced contractors with a good track record will help to reduce the time and increase workmanship. Lowest cost offered by a contractor may not be the right reason to allow these contractors to build such development. The quantity surveyor estimation must always be taken seriously. This is to ensure the houses are built with quality and reduce costly defects. 7. Consultants that are able and responsive to address all issues to ensure timely completion of the project. 8. A limited subsidy for the B40 group to ensure that they can afford to purchase good quality housing units. 9. To introduce and establish good banking facilities to assist home ownerships but at the same time will discourage speculators, i.e. Introduction of RGPT and increase the amount of down payment for those who want to own more than one house, but assists genuine homeowners in upgrading their houses from time to time.

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES 5.5.4 Authority Imposition and Requirements The federal government together with the Selangor state government, are now consciously working towards requesting developers to build and even to subsidise affordable houses for the masses. On large scale development, the Selangor state government is imposing a 50:50 quota in a residential development, building 50 percent affordable houses and 50 percent of overall numbers of units to be priced as ‘free pricing houses’ to cater for the T20 categories. In Selangor, such development is called Selangorku, and in Kuala Lumpur, it is called RUMAWIP. The Federal government has even established a scheme called PPA1M to cater for its government civil servants at a subsidised rate. There are also efforts made to ensure Rumah PPR are established to provide housing for the very poor.

Housing and the household is a form of security. Housing is important and as it provides security in the form of a shelter that provides the necessary comfort and security for the population to advance itself or at least to provide a chance for the family to grow. Most of these houses range from the basic three bedroom houses or units of 750, 850, 900, 1,000 or up to 1,200 square feet in size. In comparison with other developed or developing nations, these sizes are considered large sized dwellings that can cater for a family of four to five people comfortably. However, the density of these building blocks normally ranges from 110 to 250 units per acre, which are considered high density. However, on the plus side, ‘adequate’ parking areas are normally provided in these units. We are yet to fully understand the full extend of the untoward social impact to the population of having to live in the high-density development. The changing population demographic from living in rural areas to high-density urban areas has contributed to the surge in the population living in urban areas.

To supplement these population growth areas for affordable living, adequate amenities must be provided such as schools, playgrounds, multi-purpose halls, green areas and mode of transportations. One of the biggest challenges is to maintain such development so that it will not turn into a disrepair after its completion. It must grow its ecosystem to allow for sustainable living in the long run. One must also think about the lifestyle or lifespan of such development as they may need to be replaced or renovated/refurbished every 20 to 30 years after its completion.

For the B40, the challenges are said to be for greater as it caters for the lowest income group, especially to the bottom 20 percent of the B40. The government often provides low-cost housing units (PPR) to the lowest income group, and they are normally high rise in nature if they are located within a tight urban area or setting. Often they require state and federal government intervention to repair these units and to maintain its conditions from time to time. If improper state of one's mentality and approach continues, these units may need extensive refurbishments or even demolished in the future to prevent it from becoming slumps. In the long run, these housing units are prone to attracting unwanted desirable to inhabit these areas.

As it is required, and on the positive side, these units are not segregated and often built in a mixed environment that includes both the T20 and M40 group. In larger townships, public schools are built together with other amenities such as open areas and recreational areas to promote racial and social integration.

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING , ISSUES AND FUTURE CHALLENGES 5.5.5 Future and Predictions The future of providing enough affordable housings for the masses in Greater Kuala Lumpur is in motion and being implemented. Whether it is done correctly or wrongly, it is yet to be determined. Not all affordable houses are built the same. Some may be better built with better design. Design matters, when designing affordable houses as it caters for a large population. However, access to loans to buy these houses remain a problem due to the elegibility of the potential owners. Most importantly, the supply of these houses must be readily available to meet the actual demand and within affordable cost.

Transportation mode from these areas to other parts of the Greater Kuala Lumpur must be built in tandem with many of these housing areas and will need to be planned ahead. As mentioned earlier, there are several areas in and around the Greater Kuala Lumpur area that are being built to fit the growing numbers of the future population living close in the Greater Kuala Lumpur and its vicinity as the population is set to increase by an additional of 5 to 7 million people in years to come. We must take first into account the additional people that will be living in the Greater Kuala Lumpur in the next three decades when the total anticipated population of Greater Kuala Lumpur is expected to reach a population of 12 to 14 million inhabitants. This will be in line with the government’s vision of TN50, or Transformation 2050 which set to replace the vision 2020 target which was set in 1980.

5.5.6 Future of Science and Technology in Building Many futurists like Ray Kurzweil predicted that technology advancement will accelerate rapidly starting from the beginning of the first decade of 2000. By 2020, the power of a single power of a computer to carry out tasks and storage will be equivalent to the power of one human being. By the year 2030 to 2035, the power of a supercomputer will be equivalent to 10 billion people, or the population of all human ever lived that will be available by the year 2045. Like other man or machine made things, technology will impact the construction industry and the way we will build and provide affordable housings in the future.

Singularity simply means when humans transcend biology. ‘It is a future period of living which the pace of technological change will be so rapid, its impact will be far-reaching, that human life will be transformed’. Not to distort the future, it is hoped in this context that it will help many planners to plan the need for affordable houses accurately and on time to meet demand. Technology, if implemented properly and promoted correctly will help build the required houses with better quality and cheaper. Houses can be prefabricated and install in-situ without conventional method which is used currently. Hopefully, this will make its way with the advent of building houses cheaply in this country in the future. It will also allow for these houses to be dismantled after some time without any undue hassle.

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES 5.5.7 Working Together All parties need to work together and realistically produce a conducive housing building method which can be provided for the masses and made affordable to all. We are expected to work towards a goal to provide quality and affordable houses whereby purchasers can easily buy and take possession quickly. The parties involved are the developers, federal and state governments, bankers, all consultants, contractors, suppliers and the purchasers. In building affordable houses, price, quality and loans will need to be aligned to make it attractive to purchase. Accessibility is also important, public transportation, highways, roads, transit system, bus rapid transit (BRT) to other parts of the Greater Kuala Lumpur or Klang Valley will be very important. Seamless and easy interconnectivity will be the key that will help mobility among the population without facing unbearable daily traffic jams. Convenience and lifestyle living are important. Amenities, such as schools, parks, shops and hospitals will also be needed to cater for the needs of future population.

Creating affordable homes within the various large and medium townships that will need to house millions of Malaysian citizens from now an into the future goes beyond just building affordable units. Creating 1,000,000 homes of various typologies in Greater Kuala Lumpur for future generations shall need a considerable thought to reduce its social impact. We are not merely creating dwellings, but homes for families to grow in an environment that is safe and promotes the betterment of future generations to live in. This is to create a well conducive living environment for people from various generations to live and grow accommodating one generation with another generation.

If our assumptions are correct, we will require between 30,000 to 60,000 affordable homes yearly which will take up 1,000 to 2,000 acres per year to merely meet the demand to house an additional 4 to 5 million people by the year 2030. The land area includes providing amenities such as parks, open area, commercial area, schools, hospitals, colleges/universities, police stations, fire stations and much more.

Fortunately, the Greater Kuala Lumpur or Klang Valley with the radius of 50 km x 50 km, we will be able to accommodate such expansion if it is planned very carefully. However, it can also include the many dwellings that are also needed for luxury units for the T20 category. The best way to address such expansion is to establish townships with mixed components, and that does not purposely segregate the rich and the less fortunate.

Sustainable green townships must also be included in such planning to ensure that the township development follows guidelines that will ensure a healthy living. It will elevate the living conditions of the townships. Proper infrastructure must also be planned to ensure that the additional 4 million people that will be living in these areas can travel with ease from any part of the Greater Kuala Lumpur to other areas.

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES In short, we are in an advantageous position to plan for future communities that will be on par or are better than most cities in the various regions around the world. A proper housing development board is needed, comprising different parties from the government, public consultants, contractors and local authorities to plan our future townships that will span and fulfil the demand for the next 30 years. These stakeholders should set up a core comprehensive data bank and feedback to gauge people’s reaction and to ensure that the planning follows the best of standards. It could be aimed to be the best in the world and set greater standards for future living that is comparable or even better than the many existing developed communities.

In the following pages, we provide some examples for such development that can be built within the 50km x 50km or 2,500 square kilometres or 617,7630 acres radius that can be easily used to house the future increase of 4,000,000 people that will need to live in a healthy environment, a place to work, live, play, study, retire and at the same time grow in harmony and peacefully. The Greater Kuala Lumpur can easily fit up to 18,050,000 people, which hopefully we will not need to endure. We shall use our collective experience in building affordable housings and luxury housings to contribute to the future ideas to build sustainable townships. At the same time, our knowledge in master planning can create well-plan townships that can be used to promote a healthy and sustainable living.

Our goal is always to create a balance and to ensure that we have the best place to live in, always invigorating and promotes a life of all of our children in generations to come to live in harmony. There is a need to develop areas for the betterment of future communities.

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Quality of Life Living in the Future Communities and Cities

Figure 3.2: Quality of life indicators

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Quality of Living Rankings by Mercer - 2017 City Rankings

RANK CITY COUNTRY 1 Vienna Austria 2 Zurich Switzerland 3 Auckland New Zealand 4 Munich Germany 5 Vancouver Canada 9 Copenhagen Denmark 11 Sydney Australia 12 Amsterdam Netherlands 20 Stockholm Sweden 21 Luxembourg Luxembourg 25 Singapore Singapore 28 Adelaide Australia 38 Paris France 40 London United Kingdom 44 New York City United States of America 47 Tokyo Japan 57 Rome Italy 71 Hong Kong Hong Kong 74 Dubai United Arab Emirates 76 Seoul South Korea 85 Taipei Taiwan 86 KUALA LUMPUR MALAYSIA 94 Cape Town South Africa 102 Shanghai China 103 JOHOR BAHRU MALAYSIA 104 Bandar Seri Begawan Brunei

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES RANK CITY COUNTRY 104 Bandar Seri Begawan Brunei 106 Muscat Oman 108 Doha Qatar 118 Rio de Janeiro Brazil 126 Kuwait City Kuwait 131 Bangkok Thailand 132 Colombo Sri Lanka 133 Istanbul Turkey 134 Manama Bahrain 135 Manila Philippines 144 Hyderabad India 143 Jakarta Indonesia 152 Ho Chi Minh City Vietnam 165 Cairo Egypt 166 Riyadh Saudi Arabia 168 Moscow Russia 171 Vientiane Laos 194 Islamabad Pakistan 198 Phnom Penh Cambodia 203 Yangon Myanmar 199 Tehran Iran 212 Lagos Nigeria 214 Dhaka Bangladesh 231 Baghdad Iraq

Table 3.1: Mercer Quality of Living Rankings 2017

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.3: Map of Greater Kuala Lumpur / Klang Valley 83

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES A) 74 x 100 square km = 7,400 square km

247 acres x 7,400 = 1,827,800 x 30 people / acres

= up to 54,834,000 people at 30 density per acre

(*1 km = 247 acres)

B) 2016 population of Greater KL

= 7,212,572 / 30,572,442 or 24 % of total Malaysian population

Figure 3.4: Conceptual land demarcation of Greater Kuala Lumpur 84 AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.5: Land use of Greater Kuala Lumpur 85

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.6: Major urban centres of Greater Kuala Lumpur 86

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.7: Rail transit network of Greater Kuala Lumpur 87

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.8: Public rail transit map of Greater Kuala Lumpur and its vicinity 88

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.9: Highway networks of Greater Kuala Lumpur and its vicinity 89

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES 25 sq km = 6,177.6 acres

@ 30 density x 6,1776.6

185,328 people / 4 people

= 46,332 units

(Example)

Figure 3.10: Conceptual layout planning of future township 90

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.11: Major activities in future township

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.12: Green lungs in future township

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.13: Connectivity in future township

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.14: Detailed layout planning of future township 94

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.15: Major components of future township

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.16: Location of green parks /pockets in future township

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.17: Connectivity in future township 97

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.18: Aerial view of the future township illustration 98

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.19: Aerial view of the future township illustration 99

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.20: Aerial view of the future township illustration 100

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.21: Aerial view of the future township illustration 101

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.22: Aerial view of the future township illustration 102

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES 5.5.8 Architectural Design Solutions for Affordable Housings

Typologies of various M40 and B40 housing that will depend on location and distance:

1. High density affordable housings mainly for B40. The density can be up to 250 units per acre with parking of about or an average between 750 square feet to 850 square feet. 2. Mid density affordable housings (mainly Selangorku type housing) of 120 units per acre including parking 3. Middle density affordable housings of 60 units to 80 units per acre 4. Middle-low density affordable housings of 30 units per acre 5. Five to six storey walk-up affordable housings 6. Two storey terrace type affordable housings of about 18 feet to 20 feet x 60 feet to 70 feet or about 1,000 square feet built up area 7. Two storey cluster terrace type affordable houses of about 8. Single storey house typology 9. Single storey detached typology

Parameters that become factors the effect of future community development:

1. Increase of Greater Kuala Lumpur population from 7,500,000 to 12,000,000 in the year 2100 2. The increase of approximately five million people living in the Klang Valley 3. Approximately 1,000,000 affordable houses will be built in the next 3 years. On average, there will be a need to build at least 112,500 houses a year for or 9,450,000.00 new houses to cater for an anticipated 37,800,000 new people living in Malaysia. 4. Income of ordinary wage household income will rise in the future 5. Prices of land and construction cost will rise 6. Technology will help in building faster homes through IBS or other systems 7. Sustainable township design will be required to promote quality of living in Malaysia 8. More schools, universities, parks, commercial units and shopping malls will need to be built to complement the needs of the population 9. More highways, transit systems and roads will be needed to cater for additional population 10. To make information on the affordable housings readily available online in order to help the public to compare prices and transparent in the price of houses 11. To allocate certain amount of subsidy to assist those who will otherwise not be able to own a house 12. To be mindful of the future of these houses as they will have a lifespan 13. Most importantly, a peaceful and stable government and a matured population.

103

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.23: Layout plan of a proposed affordable housing project 104

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.24: Aerial view of a proposed affordable housing project 105

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.25: Proposed typical layout of an affordable housing unit

106

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES LAND AREA: 15.075 acres / 656,667 square feet PROPOSED DENSITY: 238 UNITS

Figure 3.26: Layout plan of a proposed affordable housing project

107

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.27: Proposed typical layout of an affordable housing unit

108

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.28: Aerial view of a proposed affordable housing project 109

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.29: Proposed typical layout of an affordable housing unit

110

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.30: Aerial view of a proposed affordable housing project 111

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.31: Elevation of a proposed affordable housing block

112

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.32: Layout plan of a proposed affordable housing project 113

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.33: Proposed typical layout of affordable housing units

114

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.34: Layout plan of a proposed affordable housing project

115

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.35: Layout plan of a proposed affordable housing project 116

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.36: Proposed typical layout of an affordable housing unit 117

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.37: Proposed typical layout of an affordable housing unit 118

AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES Figure 3.38: Illustration view of a proposed affordable housing project

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AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES 6.0 FINAL OBSERVATIONS Despite all efforts in planning, design and local authorities' efforts to introduce the best effort to ensure the end product fall short of its intended result. This is mainly due to misconceived design, regulations, impositions, workmanships by contractors that are not well thought of by both architects, planners and engineers and proper long term maintenance.

The goal should be more towards conducive living space, maintenance, cleanliness, good design, adequate amenities and convenience, and proper help to assist house ownerships. Owner responsibilities to ensure maintenance, cleanliness and considerations are also vital for making any affordable development successful. There are plenty of successful examples aimed the world that we can choose to follow to ensure the longevity of such development. There are also plenty of examples of many affordable housing schemes which turned out to be a breeding ground for slumps.

Most importantly, keeping the affordability of such units is crucial and that household income that will rise over time as we moved beyond being just a developed nation. Despite efforts being made there will be instances that such developments can go terribly wrong and over time may have to be redeveloped.

Building a livable township and cities at the international standard is a great opportunity for Greater Kuala Lumpur and Malaysia. Building purely for affordable housings in cities and townships may not enough in the long terms, building future communities that will enhance the livability of its people is the way the city planner should pursue if Malaysia will be considered as one of the best places to live in and a place that will increase the quality of life for its population.

Greater Kuala Lumpur or the Klang Valley is in a great position to build townships that can apply new ideas, technologies and sustainable living. Broad ideas including types of dwellings, mixed development and connectivity living to be thought through in great detail and provide the future communities a place to live, work, earn and play. The goal is to become one of the best places to live with an abundance of opportunities.

Between now and 2020 one million more of affordable housing will be built throughout Malaysia. It will house approximately four million people The majority of these houses will be built in Greater Kuala Lumpur. We assumed 300,000 houses will be built in Greater Kuala Lumpur that will cater for 1,200,000 million people.

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AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES As shown, the population of Malaysia will rise between 40,000,000 to 60,000,000 people the most. If the estimation in its calculation is correct, it may only will add 10,000,000 to 20,000,000 people in the next 84 years. It will translate to an additional 2,500,000 to 5,000,000 (four people per house) whereby 30% will probably live in the Greater KL, or 750,000 to 1,500,000 additional houses. Out of this number, 600,000 will fall under M40 and B40. The question is, whether this number is correct which is based on several population growth models. Furthermore, the population growth is estimated to reach 40 million people by the year 2040.

Pricing for M40 and B40 varies. The prices for M40 is between RM 350,000 to RM 450,000 or below RM 500,000 at today's prices.

Challenges, observations and planning. Our planned assumption to tackle the perceived or the acute shortages of affordable housing in the future. The future here is calculated in five, eight, 10, 15, 20, 25, 30 years time and more years in the future.

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AFFORDABLE HOUSINGS IN GREATER KUALA LUMPUR (KLANG VALLEY) AND URBAN MALAYSIA : PLANNING, ISSUES AND FUTURE CHALLENGES