The Bukit Jalil 1Malaysia Public Housing Project (PPA1M), which was completed 17 months earlier than scheduled, was the first such project built without using government funds as a result of the implementation of the ‘cross-subsidy method’, said Najib Abdul Razak.

The prime minister said that through the concept, developers constructed the project for the government and were allowed to develop the housing project on the adjacent land which would be sold to the public at the market price.

“The ‘cross-subsidy’ method was implemented on a 60:40 basis, that is, 60 percent with a total area of 7.67 acres (3.068 hectares) to be built for the PPA1M which is controlled by the government in terms of price, size and quality.

“While the other 40 percent with a total area of 5.11 acres (2,044 hectares) were allowed to the developers for the construction of houses at the current market price,” he said.

The Prime Minister said this at the handing over of 1,536 house keys to civil servants for the Bukit Jalil PPA1M project today.

Najib pointed out that the success in completing the Bukit Jalil PPA1M project, the highest PPA1M project in Malaysia with two blocks of 41-storey buildings, fulfilled the government policy and agenda for the comfort of the people and national development.

“Alhamdulillah, through this concept too, it saved government funds. Hopefully, a similar initiative would be continued by the government in future,” he said.

He added that to date, a total of 135,456 units (433 projects) of PPA1M out of the 200,000 units targeted have been approved by the government for the benefit of eligible civil servants.

“I understand that 43,993 units of PPA1M (nationwide) have been offered to civil servants,” said Najib, who believed and was confident that the balance of the uncompleted PPA1M units would be implemented by the government in stages.

He explained that the PPA1M project was a recognition to civil servants who formed the backbone of the government, who should be appreciated and not neglected.

“That is why the PPA1M was created. We not only provide houses that are cheaper than the market price, in fact, it will become additional personal assets to the applicants who could reap profits through this project.

“Imagine that the Bukit Jalil PPA1M houses cost only between RM150,000 and RM300,000 compared with RM500,000 upwards, according to the market price.

“This indirectly helped the government in making significant savings and at the same time give benefits to all civil servants,” Najib said.

Also present were the Chief Secretary to the government Ali Hamsa and Federal Territory Minister  Tengku Adnan Tengku Mansor.

-- Bernama