The Penang government does not agree with the federal decision to increase the monthly household income qualification rate from RM1,500 to RM3,000 for those who want to rent public housing units.

Since 2002, those who qualify to rent public housing units are for those with monthly household income of RM1,500 and below, said state executive councillor Jagdeep Singh Deo.

“Any proposal to increase the monthly household income qualification rate will jeopardise the chances of the poor, those with monthly household income of less than RM1,500, to rent public housing units,” Jagdeep said at a press conference today.

“This group would have to compete with those who have higher monthly household incomes (RM3,000 and less) than them,” added the Dato Keramat assemblyperson.

“Any decision to increase the rate must be discussed and justified properly, before implementation,” he stressed.

“For now we do not agree withn the decision as it was never discussed with the state executive councillors or ministers of housing in all states.”

Jagdeep was referring to a letter he received on Oct 12 from the secretary-general of the Urban Wellbeing, Housing and Local Government Ministry.

The letter stated that the monthly household income qualification rate to rent or own a unit of public housing is RM3,000 and below.

This policy was implemented since Sept 7 this year, the ministry’s letter states.

Jagdeep said the proposal is “illogical” as those who are qualified to purchase affordable housing Type A (low-cost units at RM42,000 per unit) and Type B (low-medium cost units at RM72,500 per unit) must have monthly household incomes of RM2,500 and RM3,500 respectively.

“So, it is not appropriate at all for those with monthly household incomes of more than those who qualify to buy low-cost houses to rent public housing units,” Jagdeep pointed out.

He said the Penang government has urged Putrajaya to build more public housing units in the state instead of deciding to increase the household income qualification rate to rent the units.

Of the number of public housing units in the whole country, which stands at 102,118, he noted, Penang has the least number of units at 999.