Federal-linked developers may be disappointed to hear that Penang will not accord them any special treatment or attention to get their housing projects approved.

Penang executive councillor in charge of housing, Jagdeep Singh Deo, expressed shock to hear that Penang-Federal Action Council head Zainal Abidin Osman had reportedly asked for such a privilege.

“Just because he represents a federal agency, must we give him special treatment?” Jagdeep asked at a press conference in Komtar today.

He firmly added, “No, there will be no special treatment or attention for anyone, we will approve those projects when they have complied with our requirements.”

Jagdeep denied that there were “fast, slow and last lanes” for different developers.

“There is only one lane and all developers must comply with our requirements if they want their projects approved.”

These requirements include fixing the unit price at RM300,000 (on the island) and RM250,000 (on the mainland).

Jagdeep has rejected an application by federal developers to build so-called affordable units, which will cost up to RM1.8 million (on the island) and up to RM800,000 (on the mainland).

The developers must also resolve the issue of squatters on plots that they have acquired from private owners, Jagdeep added.

'Federal developers are on slow lanes'

He was responding to the claim by Zainal, who is also Penang Umno chief, that Jagdeep’s department was “fast-tracking” planning approval for certain private development projects but not for federal affordable housing projects.

Free Malaysia Today quoted Zainal (photo) as claiming that some private developers could take the “fast lane” for quick approval while federal project developers had to take the “slow lane”.

He also alleged that meetings with the Penang government on housing matters have been postponed 28 times.

Zainal complained that only 4,000 of at least 10,000 federal-sanctioned affordable housing units had received planning approval, Free Malaysia Today reported.

Jagdeep denied that developers would be abandoned by the state government if they did not comply with the local requirements.

He said 16 official meetings were held with federal-linked developers since he took on the state housing department portfolio in 2013.

There were unofficial meetings, too, with the latest being this morning, with JKP Sdn Bhd, a federal-linked developer, he noted.

Yesterday, Jagdeep attended the State Planning Committee technical meeting and approved an application by Penang Regional Housing Development Authority (Perda) as Perda had met all the housing requirements set by the state.

He also met with PR1MA officials to discuss certain criteria that were different between state and federal regulations, and managed to get them to comply with the local requirements.

“After they agreed to comply with our requirements, I approved three of their projects,” Jagdeep claimed.

“Everyone knows I operate on an open door policy; my office door (in Komtar) is literally and physically open everyday, never closed. Anyone can walk in and talk to me,” he said.

“I will extend my offer to help to Zainal if he is willing to discuss with me and comply with all the housing requirements set by the state.”

No state-federal competition on housing

Jagdeep said there was no need to be a “hero” on the affordable housing issue.

He dismissed any attempt at pitting the state with the federal government by making it appear that there is an ongoing competition between the two in affordable housing.

“No matter how many affordable housing units we build, there is no point if the buyers cannot get bank loans.

“The economic situation is getting to be very challenging, especially for first time house buyers,” Jagdeep added.

This was precisely why the Penang government and state opposition leader Jahara Hamid had signed a petition to request the federal government to intervene in the matter.

Both parties, regardless of political affiliation, want the federal government to resolve the issue of high rejection rate for bank loan applications, especially for first time house buyers.