UNIVERSITI TEKNOLOGI MARA CAWANGAN SARAWAK
KAMPUS SAMARAHAN 2
FACULTY OF ADMINISTRATIVE SCIENCE AND POLICY STUDIES
DIPLOMA IN PUBLIC ADMINISTRATION
(AM110)
PAD101
INTRODUCTION TO MANAGEMENT PRINCIPLES IN PUBLIC SECTOR
AM1101D
TITLE:
HOW MINISTRY OF HOUSING AND LOCAL GOVERNMENT MANAGE ISSUE OF
BUILDING AFFORDABLE HOMES IN MALAYSIA
PREPARED BY:
ASFAR AIZA SYAHIDAH BINTI
ABDUL BADERI
AMIR HAMZAH BIN HIDAHRI
2021814472
HADFINA BATRISYIA BINTI
MOHAMAD ALI
SEBASTIAN EKI ANAK SALVESTER
2021450704
2021253706
2021818618
PREPARED FOR:
SAREHAN BINTI SADIKIN
SHARIFAH SHANEELA WAN ACHMED RAZALI
DATE OF SUBMISSION:
6TH JANUARY 2022
1
TABLE OF CONTENTS
NO.
CONTENT
PAGE
NUMBER
1.
INTRODUCTION
3
2.
MANAGING THE ISSUE-PLANNING
4-5
3.
MANAGING THE ISSUE-ORGANIZING
6-7
4.
MANAGING THE ISSUE-DECISION MAKING
8-9
5.
MANAGING THE ISSUE-CONTROLLING
6.
CONCLUSION
12
7.
REFERENCES
13
10-11
2
INTRODUCTION.
Finding a place to call home in this society is no longer an easy task. With the controversial
minimum wages, expensive living expenses, job shortage, and increasing population, houses
in Malaysia are often sold overpriced. This has caused so many Malaysians to be unable to
afford houses to live in. In the end, they will resort to homelessness and even end up living in
poverty.
As of November 2021, over RM19.75Billion worth of houses are unsold in Malaysia. The
main issue in this case is obviously the relationship between the prices of houses in Malaysia
and the salary of our people, or maybe even because the materials used in building the homes
are too pricey.
Datuk Seri Ismail Abdul Muttalib, Deputy Housing and Local Government Minister, said
statistics from the National Property Information Centre (NAPIC) showed a 2.64 percent
drop in the number of unsold residential units in the third quarter compared to the second
quarter of the year (a total 31,112 unsold completed houses worth RM20.1 billion). He
attributed the minor decrease in unsold housing units to a variety of promotional initiatives by
developers, including price reductions or discounts to home purchasers. This was
demonstrated by a 0.7 percent dip in the House Price Index in the third quarter of 2021
(preliminary), which was reported at 198.6 index points compared to 199.9 in the third
quarter of 2020.
Urban well-being, housing, local government, town planning, country planning, fire and
rescue authority, landscape, solid waste management, strata management, moneylenders, and
pawnbrokers are among the responsibilities of the Ministry of Housing and Local
Government.
The issue of building affordable homes in Malaysia has been an on-going issue to manage.
The ministry of housing and the local government have taken multiple actions in order to
manage the issue of building affordable houses for Malaysians with a lower income to afford.
So, what steps has the Ministry of Housing and Local Government made to address the
problem of cheap housing in Malaysia?
3
MANAGING THE ISSUE – PLANNING
Before we are able to start doing the next step, it is very important for us to come up with a
plan first. Planning is a process of thinking or a method of an action for us that involves what
we are going to do and the things that are required for the next step in order to achieve a goal.
In order to achieve a good result, a planning needs to use both logic and imagination so that it
can portray the visual of the end result. Besides, planning also can be called as the backbone
of a project or work because it plays its role to support them.
Next, in planning, it requires three main types of planning. The first one is strategic plan.
Strategic plan is conducting to analyse the things and what kind of steps needed. Secondly is
the tactical plan. Tactical plan is needed as it supports the strategic plans into a specific plan.
The third main type of planning is the operational plan. Operational plan consists of two
types, which is the single-use plan and ongoing plan. It mainly focuses on the specific
procedures and processes that occurs within an organization. All of these can help provide a
better planning for the Ministry of Housing and Local Government in managing the issue of
building affordable homes in Malaysia.
In addition, we will discuss on how the Ministry of Housing and Local Government
manage the issue of building affordable homes in Malaysia. In this case, we will be
discussing on what planning was made in managing the issue of building affordable homes in
Malaysia. But first, let’s figure out what the main objective of the Ministry of Housing and
Local Government on managing this issue is. Their main objective is obviously to provide a
comfortable and safe house for our people especially for the low-income households in
Malaysia. This is because they want to ensure that every individual in Malaysia is safe and
can live in peace.
Other than that, here is a little bit of data about the housing ownership in Malaysia. As of
in 2010, the statistics of people in Malaysia that have their own home is 72.5%. According to
the percentage, a total of 69.1% people in urban areas have their own home while 81.2% are
people in rural areas. Kedah has the highest total of percentage of home ownership in
Malaysia in 2010 with 81.8% while Putrajaya has the least with 9.9%. However, a few years
later, the statistics has increased a little bit. For example, in 2016, the statistics of home
ownership in Malaysia is 76.3% meanwhile it keeps on increasing in 2019 with 76.9%, which
has increased slightly more than in 2016. With this statistic, it has shown that people can now
afford to have their own homes but the number is rather small compared to in other countries.
That is why the Ministry of Housing and Local Government need to take immediate action to
overcome this issue to bring more benefits not only to the country, but especially the people
in Malaysia so that it can help to improve their quality of living.
4
Now, let’s discuss on what planning is made by the Ministry of Housing and Local
Government in managing the issue of building affordable homes in Malaysia. They have
made several time frame plans, which is the short- and long-term plan. These methods are
being used to ensure that it can cover up the planning that is already being used but brings a
short effectiveness. The first planning that was made by the Ministry of Housing and Local
Government is implementing the Program Perumahan Rakyat or better known as PPR which
can be classified as a long-term plan. The Ministry of Housing and Local Government
created this plan because they wanted to ensure that every household in Malaysia especially
those who come from the low-income households are able to live in their affordable homes. It
is conducted at the rural areas. By doing this, the Ministry of Housing and Local Government
can ease the people’s burdens and provide comfort for them as they do not have to worry
anymore on where they will stay as well as ensuring their own safety.
Next, another plan that was made by the Ministry of Housing and Local Government is
establishing the program of Perumahan Rakyat 1 Malaysia that is known as PR1MA. Under
the PR1MA Act 2012, the program Perumahan Rakyat 1 Malaysia was launched in 2012.
With the same aims, PR1MA was established as an affordable house program to give chances
to every single low-income household to be able to get their own house. The program
Perumahan Rakyat 1 Malaysia has been able to meet the needs of every household in
Malaysia to have their own home. This has at least helped people of this nation to bring
satisfaction to everyone because they can purchase an affordable home in Malaysia at a low
price and bring comfort to every household.
Lastly, the planning that was also made by the Ministry of Housing and Local
Government in order to managing the issue of building affordable homes in Malaysia is by
establishing the Program Bantuan Rumah (PBR). It can be a long-term plan because it is can
be use up for a long time and it can help people to get their own home. This program is
suitable to be carried out in rural areas especially in Sabah and Sarawak. The ministry of
Housing and Local Government established this program because it helps in managing the
financial stability of every household in Malaysia. It also aims to provide a comfortable yet
safe houses for every individual in need in Malaysia.
In short, all of these plans that have been made by the Ministry of Housing and Local
Government have been able to at least help ease the burden of local people in Malaysia in
having their own home. These kinds of action and planning has also helped provide
affordable, comfortable and safe homes especially for those who come from the low-income
households. By doing this, the Ministry of Housing and Local Government has shown their
concern towards every household in providing the affordable homes in Malaysia.
5
MANAGING THE ISSUE – ORGANIZING
Organizing is the way work is arranged and allocated among members of the organization, so
that the goals of the organization can be effectively achieved. Organizing is the process of
assuring that there are physical and human resources to carry out the plans and attain
organization goals. Delegating tasks, splitting work precisely, defining authority between
persons and groups, and integrating sets of operations into a logical sub division or
department are all necessary steps in achieving organisational goals.
Besides, there are 4 importance of organizing. To begin, the key of organising is to divide
work among all members of the organisation so that they may work together to achieve the
goals. If everyone in the organisation works together, the goals will be readily achievable.
Second, while members of the organisation carry out specific activities, they should enhance
their skills. All organization members can increase their own ability or specialty to do
important activities given. Next is to assure the use of organization resources efficiently.
With the help of other organizational members, we know how to use organization resources
properly. Aside from that, to foster collaboration among organisation members because
everyone has a role to play in achieving the organization's objectives. With the organising
system, all members in organization know their own roles or departments in order to achieve
the goals. They also can give support to each other even in different department or roles.
The Ministry of Housing and Local Government make major contributions to community
socioeconomic growth and well-being. They give a safe haven and a lively living
environment that will mould and affect human behaviour, productivity, and development. In
order to achieve inclusive development goals, several housing programmes were established
to offer cheap homes for both rural and urban residents. Ministry of Housing and Local
Government were concerned about building affordable house. This is because many
Malaysian people cannot afford to buy their own house due to certain issues faced. For
example, the issues faced by Malaysians is the house market price in Malaysia. House market
price is very high and does not match with the income of Malaysian people. The demand for
house building is also very high despite building houses on their own land. In this era,
manufacturing materials to make a house like bricks, wood, roof, etc. can reach almost
hundreds of thousand Ringgit.
Next, we will talk about how ministry of housing and local government organize issue of
building affordable homes in Malaysia. First of all, concept of affordable housing was created
and executed by the Ministry of Housing and Local Government. Ministry of Housing and
Local Government declared affordable houses will be sold at RM25,000 per unit for a
household with a monthly income not exceeding in RM 1500. There are a few types of
affordable house. For example, flats and single-storey terrace houses. The normal built-up
size of this economical house is 550-600 square feet, with two bedrooms, a living room, a
kitchen, and a bathroom and toilet.
6
Secondly, the most important part is affordable housing development in Malaysia is
undertaken by both the private and public sectors. Ministry of Housing and Local
Government requires private sectors to obtain licences, advertising and sales permits for
undertaking housing projects. Private developers, co-operative organisations, and individuals
or groups of persons make up Malaysia's private sector housing. Homes developers from the
private sector are actively involved in the construction of high-, medium-, and low-cost
housing. Since the Fourth Malaysia Plan, when the government solicited private developers'
help in providing low-cost housing, private sector engagement has expanded. The
government has made it essential for developers to include at least 30% low-cost housing in
their developments.
Finally, in the public sector, state and federal governments implement public affordable
housing programmes under the direction and oversight of the Ministry of Housing and Local
Government. The State Economic Development Corporation (SEDC) and the Urban
Development Authority (UDA) both play key roles in the provision of various forms of
housing in their respective states, particularly in urban areas.
To conclude, efforts must be performed, particularly at the implementation level, in order to
meet the government's goal of providing enough and affordable housing for Malaysians.
Because the bulk of the country's population falls into this group, special attention must be
paid to affordable housing programmes.
7
MANAGING THE ISSUE – DECISION MAKING
Decision making is the process of selecting the most appropriate and effective action from a
set of two or more options in order to accomplish an expected result. All issues related to
planning, organization, leadership, coordination and control are addressed by managers
through solutions implemented by enterprise operators. To manage corporate performance,
tasks, goals, strategies, policies, and organisational structures must be defined. The entire
management procedure is built on decisions. Solutions are needed to solve problems and
maximize the opportunities available. Making the right decisions reduces the complexity,
uncertainty and diversity of organization's environment. We can simplify it to P-O-L-C which
is referred to (planning-organizing-leading-controlling).
The first step in the decision-making process is recognizing or identifying a problem and
acknowledging that a decision must be made. It is important to pinpoint the problem.
Administrators can do this by identifying the problem independently of the symptoms.
Studying the symptoms can help you get closer to the root cause of the problem. Next, to
select the best alternatives and make decisions, all leaders need ideal resources: information,
time, people, equipment and materials. However, this is an ideal situation and is not always
possible. Restrictions are factors that prevent you from achieving your desired goals. After
that, recognizing the limiting factors in a given situation can help you narrow down your
search for alternatives and use the available information, resources, and time to make the best
possible decision. This is an important step in the decision-making process and perhaps the
most difficult. Managers should identify the pros and cons of each alternative and weigh
them against different situations before making a final decision. Lastly is after analysing and
evaluating the alternatives, the manager must select the best alternative. Managers should
choose the option that provides the greatest benefit while meeting all necessary criteria.
Sometimes the choice is simple with obvious benefits, and sometimes the best solution is a
combination of several alternatives. Sometimes, when the best alternative is not clear,
managers use probability estimation, research, and analysis based on their own experience
and judgment.
Housing has a significant influence on socioeconomic growth and community happiness.
The house is both a safe haven and an active living environment, with the ability to influence
and shape human behaviour, productivity, and growth. Efforts are centred on providing highquality, environmentally friendly housing, a streamlined delivery system, and nurturing an
active housing industry throughout the Malaysia Plan period of 2011-2015 (10MP). Many
housing projects have been built to offer affordable housing for rural areas and cities in order
to accomplish the objective of inclusive development. The focus of the Eleventh Malaysia
Plan (11MP) would be on affordable housing preparation to meet growing housing demands,
especially among the poor and low and middle-income households.
8
Now, we will continue to our topic which is how our ministry tackling this unaffordable
housing issue. First of all, implement Rehabilitation of Abandoned Private Housing Projects.
The government has also launched Rehabilitation of Abandoned Private Housing Projects
through the provision of aid to homes developers in order to provide an appropriate supply of
affordable housing for the low and medium-income group. As of January 2015, 25
abandoned private housing developments with a total of 4,692 apartments had been
successfully rehabilitated.
Next, promoting Home Ownership such as some financing schemes have been created to
provide chances to low-income and modest homeowners, such as Skim Rumah Pertamaku,
Skim Perumahan Belia, and MyHome. Skim Rumah Pertamaku was established in 2011 to
assist low-income adolescents earning more than RM5,000 per month in obtaining 100%
bank financing to purchase their first home. Cagamas SRP Berhad gives a guarantee to the
bank for financing in excess of 90% of the house price, allowing them to buy a house without
having to pay a 10% down payment. The government has set aside RM50 million for this
scheme, which has benefited 1,193 young people as of February 2015. Meanwhile, The Skim
Perumahan Belia programme was created in 2015 to allow teenagers with a monthly
household income of less than RM10,000 to acquire a home. The scheme gives RM500,000
per unit financing for the purchase of a less expensive first house.
After that, strengthen the Coordination and Implementation of Housing Programs like the
Majlis Perumahan Negara (MPN) was founded in 2014 to draught strategies and action plans,
coordinate legal elements, and set property price fixing mechanisms to ensure the provision
of affordable and high-quality housing. A National Housing Committee within the Jabatan
Perumahan Negara (JPN) has been established to support the MPN's functions.
Priority will be given to the creation of suitable and affordable housing for the people
during the Eleventh Plan period. The provision of finance facilities, the availability of
suitable land, and the development of environmentally friendly facilities and infrastructure
will all help to increase the availability of affordable housing. Housing data will be compiled
in order to verify that supply meets demand in terms of location, price, and target group. The
NRD's role will be strengthened, which will improve coordination in the planning and
implementation of affordable housing development. Through public-private partnerships, the
private sector will be involved in the creation of public housing.
9
MANAGING THE ISSUE – CONTROLLING
In this part, we will be discussing about the controlling strategies that the Ministry of
Housing and Local Government has done to manage the issue of building affordable homes
in Malaysia.
Control can be defined as making things happen in the way that it was intended, while
controlling can be defined as the steps that managers take to maintain control. However,
different figures have different views on what controlling is. For example, Stoner said that
controlling is the process of ensuring that actual operations match those planned. Next,
controlling is the process of observing and acting on performance in order to achieve the
intended outcomes to Schermerhorn, meanwhile Griffin defines controlling as the regulation
of organisational activities in order to facilitate goal achievement.
Controlling in public sector is very important. Some of the importance include, assisting in
the management process, adapting to change and uncertainty, to discover irregularities and
errors, to reduce costs, increase productivity, or add value, to detect opportunities, to deal
with complexity, and finally, to decentralize decision making and facilitate teamwork.
First of all, the Ministry of Housing and Local Government had taken actions in controlling
the materials used in building homes in Malaysia. One of the main reasons why homes are
expensive in Malaysia in the first place is because of the materials used in building the
homes. Most of the materials are either imported or in high quality. Although having high
quality materials used to build homes has a positive impact, this will result in the cost of the
homes. Therefore, in order to build affordable homes, the Ministry of Housing and Local
Government has decided to control the materials used to build homes. As an example, the
Ministry of Housing and Local Government has suggested construction companies to switch
from red clay bricks to grey cement bricks when building homes. Cement bricks are far more
affordable than clay bricks. Because of their production techniques, cement bricks are less
expensive. They are simple and do not need a lot of manual labour. Red bricks need the
drying and burning of raw clay material, which is a significantly more time-consuming
procedure that adds to the final selling price. In Malaysia, red clay bricks cost around
RM1.20 per piece while grey cement bricks cost only around RM0.30 per piece. In addition,
an average single-storey house needs around 8000 pieces of bricks. The cost of red bricks is
estimated to be roughly RM9600 per house, while the cost of grey bricks is estimated to be
around RM2400. According to the estimates, the cost of bricks alone differs by RM7200.
Secondly, the Ministry of Housing and Local Government prioritized those of low-income
households and the demand of affordable homes. The core reason why the government has
decided to prioritize those of low income to afford houses is because the selling price of
homes keep on increasing day by day. The selling price of homes in Malaysia rapidly
increases over time because the materials used in building homes also rapidly increases
through time. Therefore, the houses built with less expensive materials can be afforded by
those of low-income households. This allows B40 citizens to be able to own a cheaper home
to live in comfortably, especially households of many children. Other than that, prioritizing
10
those who are poor in getting a home is to ensure no more families would have to live in
squatters. These poor families will also automatically stop building their own homes illegally
in forests, at the same time improving our infrastructure. On top of that, the rate of
homelessness and poverty can be improved significantly. Tan Sri Vincent Tan, a
businessman, has also constructed an inexpensive housing project for low-income
Malaysians, known as the B40. "We now hear stories that it is now B50 since the middle
class has gone down in just that little period." According to certain news sources, M40 has
worsened to M30 because to the influence of the Covid-19 epidemic”, said Vincent Tan. This
demonstrates that many citizens can now live comfortably thanks to this initiative.
To summarize, with the skills of controlling a certain issue in administration, many things can
be solved effectively. The Ministry of Housing and Local Government has taken great
responsibility in managing the issue of building affordable homes. Controlling the materials
used in building homes is most important as the cost of homes in Malaysia is mostly based on
the price of the materials. Other than that, controlling the demand of affordable homes in
Malaysia is as important as people of low income need less expensive homes more than those
of mid to higher income households.
11
CONCLUSION
In conclusion, the Ministry of Housing and Local Government has already worked hard in
managing the issue of building affordable homes in Malaysia in order to bring comfort and
ensure the safety of the people in this country. They had issued several development
programs that cost so much spending but then it is worth it because it has helped so many
people to afford their own homes in this country. Other than that, it also has helped people to
find comfort place to stay as well as increasing the quality of their live. From this, we are able
to know that the government especially the Ministry of Housing and Local Government are
concerned towards the problem that burdens most of the people in this country.
Lastly, it is much appreciated to the government that in the future they would proceed in
improving the development programs like building more affordable homes for all people in
this country. This is to ensure that not a single household will be left out to afford their own
home. Other than that, this also means that our government has the initiative in improving the
quality of their people for generations.
12
REFERENCES
1. Datuk Ahmad Jazlan Yaakub, (2021) RM19.75 billion worth of unsold houses in
Malaysia,
New Straits Times https://www.nst.com.my/news/nation/2021/11/747941/rm1975billion-worth-unsold-houses-malaysia-nsttv
2. Homa2U, (2021) Cement bricks vs concrete bricks,
Red Brick or Cement Brick – Which Should You Buy?
Homa2U https://www.homa2u.com/stories/red-vs-cement-bricks/
3. SOCIAL HOUSING IN MALAYSIA, (2018)
International Housing Association
https://www.internationalhousingassociation.org/fileUpload_details.aspx?contentTyp
eID=3&contentID=254956&subContentID=710658&channelID=38488
4. Menyediakan Perumahan Mampu Milik yang Mencukupi dan Berkualiti, (2020)
Kertas Strategi 6 https://www.epu.gov.my/sites/default/files/202002/Kertas%20Strategi%2006.pdf
5. Sherri Hartzell, (2021) Types of Planning: Strategic, Tactical, Operational &
Contingency Planning,
Study.com https://study.com/academy/lesson/types-of-planning-strategic-tacticaloperational-contingencyplanning.html#:~:text=There%20are%20three%20major%20types,operational%2C%
20tactical%20and%20strategic%20planning
6. PropertyGuru, (2021) 8 Important Things You Should Know About PR1MA In
Malaysia!
PropertyGuru https://www.propertyguru.com.my/property-guides/what-is-prima-andhow-to-apply-12594
7. Tan Sri Vincent Tan, (2021) Getting affordable homes plan moving
The Star https://www.thestar.com.my/business/business-news/2021/12/11/gettingaffordable-homes-plan-moving
8. Noraliah Idrus and Ho Chin Siong, (2008) Affordable and quality housing through the
low-cost housing provision in Malaysia,
Department of Town & Regional Planning, Faculty of Built Environment
Universiti Teknologi Malaysia
https://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.865.7533&rep=rep1&type
=pdf
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