There is a report on The Star today, titled “Penang May Ban Low Cost Homes”. The report was written by my friend Ian Mcintyre that quoted me on this issue. I have no complaint on the content of the report, but the title of the news report seemed to oversimplify a complex issue.

http://thestar.com.my/news/story.asp?file=/2010/7/21/nation/6694234&sec=nation

Allow me to clarify here. Low cost housing is still needed in Penang (including Penang Island), as well as other parts of the country. There are many low income families that still need it.

The idea that I want to expound here is “Affordable Home with Livable Environment”.

It is a trend nowadays that Developers are building homes way beyond the means of the general population. Young working adults find it difficult to even afford a home. The link houses in industrialized parts of Penang Island is selling at RM600,000 and above, Condos are selling at RM350,000 above. It is, without the slightest doubt, way beyond the means of around 70% of Penangites. However, these homes are still selling like hot cakes and therefore, driving the prices higher and higher.

Developers also continue to build Super-link house (3 storeys), Semi-D and Big bungalows. Prices are astronomical. The building size might be 3000 sq ft and above. I have no problem with developers building luxury homes, but generally for a single family (5 members average), we do not need such big floor space and Penang Island cannot afford to have these houses because of the scarcity of land. It is a wastage and environmentally unfriendly too. Imagine how many air-cond you need to install!

On the other end, developers are required to build cheap 600-700 sq ft low cost flats that are selling at RM 42k. It is very popular among young families, because many people can’t afford link house and this is affordable for most Penangites. When young people slowly move up their salary scale, they buy another house and they rent it out to others. Lack of maintenance and other issues quickly turn low cost flats into “unlivable” situations. That is the problem with low cost flats.

My suggestion is that we need to build something in between. We need more homes between the range of RM100,000- RM 300,000. It should be affordable and with a livable environment, having good amenities, perhaps a swimming pool, ample parking space, a garden etc. Land space is optimized and no wastage of our limited resources and environment. Low income groups can get help from Federal Government or State Gov for assistance in terms of financing it. Young people will have a choice of affordable homes with good living environment.

I do not think we can Ban low-cost homes, it is simply too far-fetched! Low cost homes should be sold strictly to families of the low-income group only.

We should make “Affordable homes” with livable environment the choice for majority of Penangites.

Press Statement from Parti Keadilan on Penang Second Bridge

22 June 2010

Read News:

http://malaysiakini.com/news/135265

http://www.freemalaysiatoday.com/fmt-english/politics/pakatan-rakyat/7145-second-penang-bridge-uem-making-outrageous-demands-

http://www.merdekareview.com/news/n/13859.html

In March, 2008, I revealed a letter written by UEM Managing Director Dato Ahmad Pardas Senin to Director of Economic Planning Unit of Prime Minister’s Department Datuk Dr. Sulaiman Mahbob. The letter dated August 2007, titled “Projek Jambatan Kedua Pulau Pinang – Analisa Kewangan” was sent to Parti Keadilan Rakyat by a whistle-blower. There were several main points in the letter.

• Concession period 45 years.
• UEM requested the Government to provide Soft Loan (GSL) at 4%.
• UEM asked as high as RM22,872 million government assistance from the Government including Investment Tax Allowance (ITA), Government Grant, JBIC Loan and Soft Loan.
• Construction price was RM4,068 million.
• Projected Toll charges would amount to RM7,065 million
• Penang 2^nd Bridge’s Beginning Toll rate to be RM9.40 (Class 2) with 2% every year till end of concession 2051, to be reviewed every 5 years.
• Penang First Bridge to be adjusted together with Second Bridge to RM9.40, and eventually reached maximum toll rate of RM11.50 and continue till 2051. (In fact concession ends in 2018, why till 2051?)
• No more 20% discount for Touch & Go cards.

Former Chief Minister denied my statement at that time. With recent developments, my revelations have proven to be true. Recently, first came the controversial cancellation of Touch & Go discounts. Under immense public pressure, the Gov flip-flop and announced that non-Penangites will no longer enjoy the discount. Last week, Prime Minister has confirmed that Penang Second Bridge Toll will be RM9.40, consistent with my revelation. Now, we are worried that the Government will just go along with whatever proposal the UEM in this letter.

Something is not right with Penang Second Bridge Project. At a time where federal minister warned that the country would go bankrupt, huge amount of money has gone to subsidized crony companies (please refer Government Assistance section). Federal Government gave Penangites various construction costs, the construction cost keeps escalating although material prices have come down significantly, the toll rates jump 34% from RM7 to RM9.40. The terms and conditions of the contract are shrouded with secrecy. All these have to stop. Penang Parti Keadilan Rakyat demands accountability from the Federal Government.

Penangites have been short-changed for the first time when the Government proposed and selected the current alignment and design without consultation with the Rakyat. Then, the government again direct negotiated with UEM without open tender.

We believe open tender will bring the best deals for Penangites. Competitive bidding will bring the cost down significantly. Competition will also bring in the best expertise and technology to construct the bridge. Competition will benefit the Rakyat. Unfortunately, with the current Barisan Nasional usual practice, their crony companies “didahulukan”.

We need to put a stop to all these corrupt practices. Today, we are revealing the document that we got in 2008. This letter has not been disclosed to public before. It is an old document, we believe there will be more recent development. Under BN administration that has never practice transparency, this is the only financial analysis we have had. In the name of transparency, the rakyat has the rights to know.

Therefore, Penang Parti Keadilan Rakyat call upon the Prime Minister to de-classified the Penang Second Bridge Toll contract between The Government of Malaysia with UEM. Penangites have the rights to know what is in for them. They are the people who will use it everyday. They are the people who pay for it for the next 40 years.

Failure to do so, Penang Parti Keadilan Rakyat will intensify our campaign to halt the Toll Hike. We will mobilize the Rakyat to tell the Prime Minister, we don’t want toll hike. We want Competitive, Accountability and Transparency in Second Penang Bridge Project.

YB Sim Tze Tzin
Ketua Biro Komunikasi Parti Keadilan Rakyat Pulau Pinang
ADUN Pantai Jerejak

We are convening in Shah Alam to discuss the future of the Party and Malaysia. We rejuvenate our founding principles of multiracial and multicultural politics. We will explore new ideas to bring changes to Pakatan Rakyat States and Parliament. Most importantly, we will regroup, reorganize and rejuvenate to bring “Harapan Baru” in 2009.

Watch the Congress Live! Today 29/11/2008 9am www.anwaribrahimblog.com www.tvantara.com