Extensive red tape, political party-based quotas and flawed policies are among the stumbling block that prevent the poor from owning low-cost houses, according to consumer and social rights activists.

Consumer Association of Penang complaints section head Ravinder Singh said a main problem in Penang was the long wait for low-cost units.

"After registering with the state housing department, people are simply left waiting for years for the letter informing them of available low-cost units," he said when contacted.

"In some cases, people have waited up to 10 years before anything was heard from the department."

He attributed the lengthy delays to the insufficient number of low-cost units and the unsuitability of locations.

Ravinder also noted that political parties are given a certain number of low-cost units to be allocated accordingly.

"About three years ago, a group of opposition supporters were denied low-cost housing on the basis of the quota allocated to components of the ruling party," he alleged.

"If party-based quota continues to be the basis for allocating low-cost units, then Selangor's move would not solve the problem."

The Selangor government's proposal to allow the rich to buy and rent out low-cost houses to the poor has drawn severe criticism from grassroots social activists and the opposition.

They said Menteri Besar Dr Mohd Khir Toyo was ignoring the root causes of the problem.

'Protect the poor'

The Marginalised People's Network (Jerit) believes the plan would serve to enrich those who are already wealthy.

Jerit co-ordinator A Sivarajan said the proposed move would defeat the purpose of the existing policy designed to guarantee housing for the poor.

"This is totally unacceptable. The government is shirking its responsibility towards the poor by adopting such a stand," he said.

Sivarajan said the policy was implemented to prevent multiple ownership of low-cost homes that would deprive the poor.

"Lifting the curb would remove the protection currently enjoyed by low-income earners. It would also render them vulnerable to exploitation. Opening up the low-cost market would reduce opportunities for the poor to own homes, especially with the inadequate supply in Selangor."

Citing Mohd Khir's claims that public housing was all taken up because low-income earners preferred to rent, he said that was due to their inability to buy houses.

"International standards stipulate that a house or apartment should not cost more than three years of the gross family income."

He said that the current RM42,000 price-tag for a low-cost unit in Selangor means that a family's income has to be at least RM1,170 a month.

Citing figures from the 8 th Malaysia Plan, Sivarajan said more than 30 percent of Malaysians have a monthly income of between RM1,000 and RM2,000 while close to 20 percent earned less than RM1,000.

Instead of pushing the low-income group further into deplorable living conditions, he said the state should encourage them to build their own homes.

"It should provide and co-ordinate proper infrastructure, which in turn would reduce the burden on the government to provide public housing," he added.

'Review proposal'

Selangor and Wilayah Persekutuan Consumers' Association, in criticising the application requirements, wants Mohd Khir to review the proposal.

Its president, Mohd Yusof Abdul Rahman, refuted the menteri besar's claim that the state only received 50,000 applications when there were 225,000 units available.

"The conditions imposed are rigid and full of red tape. Such criteria as the requirement to be Selangor-born and married are among the main stumbling blocks," he said.

"It is a well-known fact that a majority of residents in Shah Alam, Subang Jaya, Ampang, Petaling Jaya and surrounding areas migrated from other states. Most have lived in Selangor all their lives."

The location of low-cost schemes was another point raised by Mohd Yusof, who urged the state to first study the problems plaguing the allocation system of low-cost housing before amending any policy.

"Demand for low-cost housing is always higher in the vicinity of government administrative centres and industrial areas," he noted.

He said allowing singles to own low-cost units and extending the eligibility to include Malaysians from other states would be a good start to the review.