Hefty fines set for under-delivery of affordable Johor homes

Flexible payment terms available for erring companies

The Masjid Sultan Iskandar dominating the skyline of Johor Bahru, Malaysia during sunrise. Ijam Hairi/Shutterstock

Developers in Johor face up to MYR60,000 (USD14,300) in fines for every unit they are not able to deliver under the Malaysian state’s affordable housing scheme, the Malay Mail reported.

Mentri Besar Datuk Osman Sapian made the announcement during the presentation of the Johor Budget in Kota Iskandar yesterday.

Erring firms will still be given leeway in payment terms for the charges. “If the developer pays in bulk, the charge will be at MYR40,000 per unit. But if the payment is made by instalments, the charge will be at MYR60,000 per unit,” Osman was quoted as saying.

As of October, a total of 3,714 affordable housing units were completed in the state.

An additional 12,320 units of affordable homes are scheduled to be completed between 2019 and 2020, Osman revealed. “Meanwhile, for the years 2021 to 2023 the state government expects 7,608 units to be completed.”

A total of 23,643 affordable home units will be completed by 2023, he added.

The Housing and Local Government Ministry stated this week it is on track to achieving its target of building 100,000 houses a year nationwide for the next 10 years, based on the progress of housing projects between state governments and the private sector.