Urban Well-Being, Housing and Local Government Minister Abdul Rahman Dahlan has refuted Penang Chief Minister Lim Guan Eng's claim that the affordable housing rate capped at RM400,000 was set by the federal government.

In the Dewan Rakyat today, Abdul Rahman (BN-Kota Belud) was asked to explain the differing rate for affordable housing between the states.

The lawmaker then chided Lim (DAP-Bagan) for stating that the affordable housing rate at RM400,000 was set by the federal government.

"This is nothing but a lie," he said to jeers from other lawmakers.

He added that setting RM400,000 as the maximum price for affordable housing was done by the DAP state government and not the federal government.

"The federal government never agreed for affordable housing to be set at RM400,000. This was a decision made by the state government.

"Don't involve the federal government in this issue.

"I don't want the people of Penang to be angry with the federal government when the decision was made by the state government," he said.

In a video posted by Buletin Mutiara , Lim said the state government was criticised for houses priced at RM400,000 that are considered affordable.

"We are just following orders by the federal government. They set what is affordable housing.

"Affordable housing is from RM72,500 to RM400,000, this was set by the federal government. So don't ask us, ask the federal government," he said.

But this did not mean that the Penang state government only builds houses that cost RM400,000, Lim had added.

Meanwhile, P Kasthuri (DAP-Batu Kawan), interjected asking why Abdul Rahman only cited Penang.

"Because (other) menteris besar and chief ministers are not like Bagan who lied," he said, prompting Kasthuri to urge him to retract his statement.

Amid an uproar in the Dewan, Abdul Rahman stressed that he only wanted to respond to Lim's remarks that were shown in the video on Buletin Mutiara 's Facebook page.

Responding to Jeff Ooi (DAP-Jelutong), who said that he was politicising the matter in the Dewan, Abdul Rahman denied that was the case.

"I'm not politicising it. I don't understand what's with all the noise," said the minister.