Housing and construction industries to benefit from RM500 million allocation for IBS

Housing and construction industries to benefit from RM500 million allocation for IBS

KUALA LUMPUR, October 23 — The housing and construction industries will benefit from the RM500 million allocation for the Industrial Building System (IBS) via SME Bank in Budget 2016, said Mah Sing Group Bhd Managing Director, Tan Sri Leong Hoy Kum.

In a statement Friday, Leong said, the fund would allow the company to explore further usage of this technology for time savings as well as reduction of material wastage during construction.

He said the estimated RM18 billion investment in 2016 for RAPID project in Pangerang would drive demand for housing in the vicinity, directly benefiting its township in Bandar Meridin East in Plentong.

“The proposed implementation of the Cybercity in Cyberjaya will increase demand for both commercial, retail and residential units, within our Garden Residence@Cyberjaya and Garden Plaza@Cyberjaya,” he said.

Meanwhile, member of Parliament for Sekijang, Anuar Manap, said the allocation of RM1.6 billion for 1Malaysia People’s Housing Programme (PR1MA) to build 175,000 houses in town and suburban areas nationwide was appropriate as it would help the low-income group.

He said the provision of RM200 million for the First Home Deposit Scheme by Ministry of Housing and Local Government was also helpful.

“This will support the Youth Housing Scheme which was recently launched to help young couples earning less than RM10,000 a month to own the first home,” he said.

He urged the Finance Ministry to increase the fund because since its launch a few months earlier, the total amount of loans approved has reached RM69.25 million.

“I also appeal that consideration be made for houses costing RM100,000 and not above RM500,000 to be lowered again,” he said.

Co-founder and Group Chief Executive Officer of iMoney, Lee Ching Wei, agreed, saying that the allocation still did not help the middle-income group as it did not qualify.

“Disappointingly, other initiatives focused on easing cost of living are focused solely on civil servants.

“The only silver lining we saw in this allocation is the higher tax relief for those with non-working spouses, children and elderly family members to care for,” he said.