Issues and challenges in contemporary affordable public housing schemes in Malaysia

Abstract

Purpose This study aims to examine the issues and challenges in contemporary affordable public housing schemes and proposes an alternative affordable public housing model for low- and middle-income households in Malaysia. Design/methodology/approach The paper applied qualitative research method. Semi-structured in-depth interviews with four government officials were conducted to understand the provision, framework and working mechanism of selected affordable public housing schemes. A focus group with nine participants was conducted with low- and middle-income households to validate pertaining residential issues and problems in affordable public housing schemes. Findings The overall findings reveal that the growing plights of unaffordability, poor maintenance and mismanagement have undermined the performance of affordable public housing schemes in Malaysia. The paper indicates that Islamic Public–Private Housing Co-operative Model (IPHCM) possibly has a comparative advantage in its design and operation and therefore can be implemented as an alternative model to address these issues in contemporary affordable public housing schemes in Malaysia. The findings also offer guidelines to government officials and managers of public housing schemes to implement the IPHCM model that can help in reducing the financial burden on low- and middle-income households, improving maintenance work and enforcing effective management practices with residents’ participation. Research limitations/implications The paper is limited to develop a new Shariah-compliant affordable public housing model. The paper presents a design and defines the underlying Shariah concept and contracts and their working mechanisms in the proposed model. The paper has not considered other related areas in the development of IPHCM model including Shariah and subject matter expert’s perspective, consumer behavioural intention, legal and regulatory requirements. Originality/value The paper has relevance for policymakers and government institutions offering affordable public housing schemes to ensure successful deliverability of sustainable and affordable public housing for low- and middle-income households in Malaysia.

Households’ acceptance of affordable Islamic public-private housing co-operative model (IPHCM) in Malaysia

“…Additionally, households also face difficulties in securing home financing from private banks, both conventional and Islamic. Bilal et al (2019) validated various issues related to maintenance and management in an affordable public housing scheme, highlighted by the previous studies. The findings of their study suggest that delay in monthly rental and maintenance fee payment, shortage of funds for maintenance and management works, dweller’s non-cooperative behaviour for participating in maintenance and management process and vandalism of common areas and facilities by the dwellers e.g.…”

“…Despite these efforts, however, the issues in affordable public housing for low- and middle-income households have increased in recent years indicating the inadequate impact of these measures owing to, perhaps, weaknesses in the design, sustainability and implementation of public housing schemes. Ariff and Davies (2009), Ariff (2011), Ariff and Davies (2011), Bilal et al (2019), Samikon et al (2013) and Zakaria and Hamzah (2007) argued that there are three pertaining issues in contemporary affordable public housing schemes in Malaysia, namely, unaffordability, poor maintenance and mismanagement. In response to these issues, Bilal et al (2019) proposed an Islamic public-private housing co-operative (IPHCM) model that can potentially be implemented as an alternative to existing affordable public housing schemes in Malaysia.…”

“…Ariff and Davies (2009), Ariff (2011), Ariff and Davies (2011), Bilal et al (2019), Samikon et al (2013) and Zakaria and Hamzah (2007) argued that there are three pertaining issues in contemporary affordable public housing schemes in Malaysia, namely, unaffordability, poor maintenance and mismanagement. In response to these issues, Bilal et al (2019) proposed an Islamic public-private housing co-operative (IPHCM) model that can potentially be implemented as an alternative to existing affordable public housing schemes in Malaysia. In its design, the IPHCM model is based on three underlying Shariah instruments, namely, Cash Waqf (CWC) Concept, Musharakah Mutanaqisah Contract (MMC) and Ijarah Contract (IC) that are integrated into a single model.…”

“…Bilal et al (2019) reasoned that unaffordability in public housing schemes is mainly due to the involvement of the banking sector. Notwithstanding the substantial subsidy (i.e.…”

Project governance practices in urban public housing projects: a case study of public housing in Malaysia

“…For the record, the government has spent almost RM3.8 billion on PPR projects construction for the past ten years, which have benefited more than 46,000 participants and their family (KPKT, 2020). Nevertheless, the stakeholders involved in each level of public housing development are segregated through different rules and measures (Teoh, Olanrewaju and Tan, 2018) and the rising issues of unaffordability, poor maintenance and mismanagement which affected the public housing schemes (Bilal, Meera and Razak, 2019) signal the challenges and needs for governance in public housing to be explored. Previous research highlights the critical success factors of housing governance to deliver successful affordable housing (Olanrewaju, Tan and Lee, 2017).…”