Selangor's plan to allow wealthy people to buy low-cost units for rental to the poor is a good idea, but only as a temporary measure, said a human rights commissioner.

Ramon Navaratnam, who heads the Human Rights Commission of Malaysia (Suhakam) economic, social and cultural rights working group, said this could provide temporary relief.

"But more importantly, we need a comprehensive housing policy for the poor that is based more on a structural approach," he said when contacted.

He said the plan would prove useful in the short term because many low-cost units are already being reserved for low-income and Bumiputera potential buyers.

"The problem is that such units have not been taken up because the low-income earners do not have the means to purchase them."

Ramon did not elaborate on what would be considered 'short term'.

Reasonable rental

However he qualified his support by outlining the conditions that should be in place to prevent possible exploitation or abuse of the amended policy.

"The rental should be reasonable and the low-cost units should go only to the genuine poor. Those living without accommodation or in sub-standard squatter houses are the ones that the state should be helping," he said.

He noted that there was demand for low-cost housing but that people could not afford to buy these, therefore leaving many units unsold.

"In this respect, he (Selangor Menteri Besar Dr Mohd Khir Toyo, photo ) must be commended for breaking the impasse or vicious cycle by encouraging those with savings to buy second or subsequent property as an investment for rental to the poor," he said.

Ramon said the situation also affects developers who have found themselves in a fix due to the mandatory requirement to build 30 percent low-cost units for each of their housing projects.

The menteri besar, he said, was under pressure to meet the basic needs of voters.

"Access to housing, employment, health and education are all basic needs and a human right."

Ramon also said the Suhakam working group has found that demand well exceeded the supply.

"People without adequate housing are more vulnerable to living under unhealthy environmental conditions. They are exposed to crime and also cause environmental depletion. This is a big problem with wide ramifications," he added.

Govt should buy

Mohd Khir's statement made last Sunday has sparked criticism from grassroots groups, rights activists and politicians

Housing and Local Government Minister Ong Ka Ting was quoted by The Star yesterday as saying that he would have to study the proposal first.

The paper also quoted National House Buyers Association as saying that the government should buy the units and rent them out to the poor instead, because rich people would want good returns on their investment.

The Real Estate and Housing Developers Association and the Malaysian Institute of Estate Agents favoured the proposal which they argued would eventually reduce poverty and help everyone own a house.

There were also suggestions that the rich be made to pay more for the low-cost units.

Provide opportunity

However, Selangor DAP organising secretary John Chung repeated calls for the Selangor government to review its plan to amend the housing policy.

"It contradicts the very purpose of low-cost housing. The state should make it truly low-cost and affordable for the low-income group."

He was also concerned about possible abuse of the allocation mechanism if the policy is amended.

"In the long run, the state should ensure that those from the lower-income group have the opportunity to own houses. It should formulate a scheme that enables them to buy instead of simply renting the low-cost units so that they can enjoy the security of property ownership," added Chung.

Selangor and Wilayah Persekutuan Consumers Association president Mohd Yusop Abdul Rahman said property speculation could make matters worse.

"Instead of solving the housing problem of low-income earners, allowing the rich to buy such property may lead to profiteering and the imposition of high rental in areas where there is a high demand," he said.

"Although there is an assurance of controlling the rental, the absence of any federal or state legislation is enough to ensure its failure."

Former Kajang state assemblyperson, Dr Shafie Abu Bakar, said the surplus of 100,000 low-cost units was proof of the state's bad planning and failure of the current allocation procedure.

One way, he said, was for the state government to implement a hire-purchase scheme and create a price subsidy structure which can help it rid the state of squatters by 2005.

In a related development, the cabinet shot down the proposal by the Selangor government.

Prime Minister Abdullah Ahmad Badawi said the federal government would stick to its policy of building such houses only for the low income group.

"This is the federal government's policy which should also be adhered to by the state government," he told Bernama .