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By Elizabeth Looi, The Nut Graph

PETALING JAYA, 24 Nov 2008: The Kedah government has aborted its proposed 50% housing quota for bumiputera and reverted to the original 30% following objections from several quarters.

Kedah and Perlis Rehda chairperson Ricque Liew told The Nut Graph that Menteri Besar (MB) Datuk Seri Azizan Abdul Razak agreed in a closed-door meeting to drop the proposal today.

Rehda is the Real Estate and Housing Developers' Association.

"We are grateful that the MB finally understands our plight and the impact the proposal would make on the economy.

"We explained to him that 60% of property in Kedah were sold to bumiputera and 90% are priced below RM200,000," Liew said in a phone interview after the meeting.

He said Azizan also agreed for Malay reserve land to be converted to freehold land so long as developers could swap the reserve land with another plot outside Alor Star.

However, the 50% bumiputera quota remains for property built on land that was formerly Malay reserve land.

Liew said the 50% quota for property on Malay reserve land was fair. "This will be a boost to the property market as well as the economy," he said.

Azizan confirmed the abolition of the proposed 50% quota and said he had appointed his state executive councillors to work with Rehda to resolve the issue of releasing unsold bumiputera units.

"We will come up with a release mechanism soon. I think this is a win-win situation for all," he said in a phone interview.

Liew said Rehda clarified during today's meeting that developers are not merely interested in profits, and noted that there are no property investors in Kedah.

Comments (7)

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written by Wahyu, November 25, 2008 08:53:23

Kecuali Pakatan Rakyat di Kedah tidak inginkan undi-undi bukan melayu pada pilihanraya akan datang. Laksanakanlah 50peratus tu.

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written by Democrats, November 25, 2008 11:46:34

In a time of economic uncertainty and credit crunch, we must look in totality the logic of this 50% or 30% rule. If there isn't 30% of bumi to take up the lots, are we to scrap the project launchings while there are willing non bumi buyers or demand for it? Its not easy to get a good credit line these days with the credit crunch, and more stringent evaluation process on credit, the demands for housing is dwindling as we speak. So if there are the numbers, they should build.

Remember, the economy is interlinked. If the the developer stops works, contractors dont get jobs, building material supplier dont get orders, factorys that provide the materials do not produce, lawyers that do the S&P, banks that lends the money have no business, etc..... Tell me, how many bumi will be out of a job soon? In trying to protect your claim to your land rights, you may just end up with it, without a house, a shirt or food on the table....

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written by mykantree, November 25, 2008 14:32:15

I am still wondering why this highly subsidised formula, whether it is 30,40 or 50% is still on. It has just greatly added to the cost of the bumi purchasers. It is a joke to believe that any housing developer actually planned to reduced his profits to accommodate the discount given to bumi buyers. it is a cost that is factored into their selling price.

At this stage of the progress made by the bumis, there is no need to make the non-bumi suffer more to put a decent roof over their head.

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written by Steven Tan, November 25, 2008 14:34:46

Dear Brothers and Sisters,

I have ONE QUESTION, hopefully someone with the info don't mind to explain..

Normally whenever we see some advertisement on buying house, there will be a column that mentioning about the discount rate to Bumiputra. If I'm not mistaken the discount rate will be around 7% to 15%.

Let say the price of a house is RM200,000.00 and let say after minus the 15% discount(Discount rate in JB), a BUMIPUTRA needs to pay only RM170,000.00. So who are absorbing the RM30,000 ?????

So WHO is ABSORBING that 7% to 15% discount given to the BUMIPUTRA BUYERS???
a) GOVERNMENT b) DEVELOPER c) THE REST OF THE NON-BUMI BUYERS

I hope anyone don't mind to give a clearer picture to this situation

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written by NEP, November 25, 2008 18:48:51

Very disappointed because I have a such stupid Menteri Besar making decision without thinking critically. Hopefully can change a brainness Menteri Besar like in Selangor or Penang.

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written by Jan, November 25, 2008 19:26:20

Brothers, sisters please remember there's no such thing as a free lunch.
People I know who worked for developers tell me bumi discounts are factored into housing prices unless the area in question sells badly. Nothing is free in this world, bumi discounts are paid for by non bumis. A poor non bumi actually subsidises a rich bumi and it's real. When I tell my foreign friends they just got disgusted and say WTF.

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written by citizenmy, November 25, 2008 20:00:55

The correct policy for properties built on Malay Reserve Land should be 100% Bumiputra Ownership.
Since its Reserve Land, land acquisition can me made at cheaper price, which will automatically result in lower property price even without any discount.

Even we can hire multiple Class F Contractors, and distribute equally to the Contractors 5 house each to construct.

Everyone will be happy. House buyers and Contractors...only if any developers will go for it.

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