PUTRAJAYA, 25 Sept 2008: The government has approved an additional RM100 million allocation for housing projects under the Rumah Mesra Rakyat (RMR) scheme this year and in 2009.
Deputy Prime Minister Datuk Seri Najib Tun Razak said the allocation would enable Syarikat Perumahan Negara Berhad (SPNB), a wholly-owned subsidiary of Minister of Finance Incorporated, build 1,500 RMR units nationwide.
He said the scheme was aimed at helping people with household income below RM1,500 to own a more comfortable house since it would be difficult for them to secure loans from financial institutions.
“However, an applicant must own the land on which the house is to be built or it must be owned by a relative who has given statutory approval for him to occupy the land.
“To be eligible, the applicant’s age must also between 21 and 65 years,” he told reporters at the Finance Ministry here today.
Najib, who is Finance Minister, also said the price of a house measuring between 700 and 900 square feet had been raised to RM70,000 from RM55,000 in the Peninsular, and RM80,000 in Sabah and Sarawak, up from RM76,000 previously.
The price had been raised because of the increased cost, he said.
He said that under the scheme, an owner would bear only two-thirds of the cost of building the house in the form of an interest-free loan according to the Al-Qardhul Hassan concept, while the government would pay the balance.
“The owner will only be required to pay RM150 per month for 23 to 29 years,” he said.
He said that since its introduction in 2002, 6,551 RMR units had been built costing RM310 million while another 6,263 units costing RM425 million were under construction and were expected to be completed by March 2009.
“The government hopes that the additional allocation would enable more people to benefit, especially those in rural areas, and therefore enjoy a better life,” he said. — Bernama