1.0 INTRODUCTION

The residential property market in Malaysia has experienced significant

expansion over the past few years with the price at several states especially at Penang,

Selangor, Melaka and Johor Baharu expanded at higher rates. As economic theory has

explained house price movement is inherent with regional economics and regional

demographic such as income, the cost of capital, stock prices and population change.

However, the expanded of housing price in Malaysia caused most of the low-income

family is not able to have a house in Malaysia.

According to (Abraham & Hendershott 1996) owning a home for shelter and comfort

is central to most families and also considered the definition of personal success.

During periods of rapid economic growth, house price will continue to surge and

making it unaffordable especially at Penang. In order housing sector plays an eminent

role to the country's economy in terms of employment, capital market, consumption

and financial wealth. Government departments play a role to create a programme of

the affordable house to increase the quality of life among Malaysian.

Especially in Penang the land of used is decreased rapidly due to lack of land.

According to economic theory, the higher demand and lower supply will increase the

price of the product. The land of demand is higher in Penang and the supply of land is

limited because of the land of used. After that, the price of land increasing directly

brings an impact to the price of housing in Penang. The richer monopoly the housing

sector and the poorer suffered on the cost living. . However, the state government and

the federal government should take an initiative to recover the unbalance of wealth in

the Penang.

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2.0 Background of the Development Program and the Agency

2.1 Objectives and Target Population/Beneficiaries

The housing programme had been implemented by PERDA at three districts

which are Northern District, South West District and Southern District. The types of

the house had been build is single storey semi house, single storey bungalows, three-

story office lot and low-cost apartments on those areas. The target groups'

development programme is the rural area's Bumiputera. The main objectives are to

equalize the economy and life living in Malaysia among the races especially the

Malay that is still staying at rural area. In the Northern District housing programme,

the target population is Bumiputera who stays at rural area. In the same time, they

offer non-Bumiputera on few types of a house which is single storey bungalows,

three-story office lot and single storey semi house with a higher price market compare

to Bumiputera which have a special discount rates on a house lot. Below is the table

of housing price in Northern District housing programme at Taman Sungai Dua

Utama:

Types of houses Price of houses

Double Storey Terrace House - 59 units

Area: 1,510 Square Fit

Non-Bumi - RM206, 850

Bumiputera- RM197, 000

Double Storey Terrance House- 64 units

Area: 1,524 Square Fit

Non-Bumi - RM210, 000

Bumiputera- RM200, 000

Double Storey Office Lot- 7 units

Area: 2,202 Square Fit

Non- Bumi- RM304, 500

Bumiputera- RM290, 000

Low-Cost Apartment- 266 units

Area: 631.18 Square Fit

Non- Bumi- Not Available

Bumiputera- RM 33, 000

(Sources: PERDA Website)

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The beneficiaries groups on this housing programme are Bumiputera.

Bumiputeras have the extra discount on buying housing lot and have the policy to

reserve the low-cost apartment to them. Most of the Malay ethnic only afford to buy

low-cost housing in an urban area. Through this programme, it will encourage them to

buy a house to stay in the town area.

2.2 Linkage with Tenth Malaysia Plan Objectives

Tenth Malaysia Plan was announced on 10 June 2010 by the sixth Prime Minister of

Malaysia Datuk Seri Najib Tun Razak. The five strategic to achieve higher income

country status due to the year 2020 increases the value in the country economy,

improve knowledge abilities and innovation, and inculcate first-world minded, handle

continuously socioeconomic inequalities, improve level and ability of living quality

and strengthen the institution and country's implementation.

PERDA objectives have been linkage with Tenth Malaysia Plan on Housing

programme to improve level and ability of living quality by providing the affordable

house with complete infrastructure. This housing programme objective is to equalities

the socioeconomic between the rural area and urban area. The groups of the target

have a good quality of lifestyle by having a comprehension environment.

2.3 Introduction of the Agency and Administrative System.

Penang Regional Development Authority (PERDA) is an agency to enhance,

develop and improve the economy and social development at Penang Regional. This

agency is under the Implementation Coordination Unit (ICU), Prime Minister’s

Department (JPM). This agency was established on the 1st of June 1983 under the 282

Act. The formation of PERDA has started with a proposal to establish agricultural

development board by the Cabinet on 3rd March 1982. On 1st August 2005, PERDA

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was put under the administration of the Implementation Coordination Unit (ICU

JPM).

The main objective of PERDA is developing the socio-economic in Penang

regulating through human development, housing, education, agricultural, people

welfare, business premise and small scales industry, and social program to balance the

quality of life. PERDA logo has shown below:

(Source: PERDA Website)

The administration was led by Yb. Datuk Haji Shabudin Bin Yahaya the

member of Parliament Tasik Gelugor. He was assisted by two deputy president which

is Pn.HJH. Noraishah Binti Che Dan and Tn. HJ. Rosman Bin Hashim as a

administrative department and development department. The third layer department

are including, strategic planning department, property and technical department,

financial department, service department, technology information department,

economy development department and human development department by some staff.

It has another addition department is under the second layer which is PERDA-TECH

department led by En. Mohd. Asri B. Baharum.

Organization chart of PERDA shown below:

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(Sources: PERDA Website)

2.4 Goal, Activities and Functions of the Agency

Vision- Dynamic regional development agency in implementation of Pulau Pinang

regional development

Mission- Agency which mobilize the development of local community through the

implementation and management of program/social- economic project which is

efficient under better governance

The first function is to improve standard livings of the targeted group of

PERDA in all socio-economy fields. The second function is to develop territories or

settlements areas of PERDA via industrial development, housing and infrastructure

facilities. The third function is to create a balance in development between the internal

operation of PERDA and external operation of PERDA.

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3.0 BACKGROUND OF THE VILLAGE/ LOCALITY

3.1 Administrative Setup: Village/ Locality, Local Authority, Mukim, District

Taman Sungai Dua Utama is located at Sungai Dua, Butterworth, Pulau

Pinang. Butterworth sits in the southernmost tip of the North Seberang Perai district,

sandwiched between Prai River in the south and east of the town and the North

Channel in West which separates Penang Island and Seberang Perai. The town with a

low-lying are close to sea level is bordered by Perai in the south, Seberang Jaya in the

east, both are separated by the Prai River and Telok Air Tawar in the north. The west

coast facing Penang Island, especially near Bagan Ajam is lined with sandy beaches.

Butterworth has more than five suburbs which are Bagan Ajam, Bagan Dalam, Bagan

Jermal, Bagan Luar, Kampung Benggali, Mak Mandin, Raja Uda, Sungai Puyu and

Sungai Dua. Sungai Dua is a small area allocated at the northern part of Butterworth

which is between Permatang Pauh and Sungai Puyu. Sungai Dua nearly North- South

Expressway. While enter North Expressway heading to Sungai Petani needs to pass

through the Sungai Dua Toll.

3.2 Natural Setting: Location And Surrounding Physical Landscape

Sungai Dua is a semi-urban area which is having a completive infrastructure.

However, Land used at Sungai Dua have 45% are using on agricultural sector which

is planting paddy. Another 55% of land used are using on housing and business

sector. Among the bordered Sungai Dua is a Malay Traditional Kampung such as

Kampung Kolam, Kampung Permatang Sungai Dua, Kampung Lahar Yooi, Kampung

Gua Kempayar and etc. Sungai Dua has some franchise shop have been the operation

which is KFC, Pizza Hut, Secret Recipe, Watson, Seven-Eleven and etc.

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3.3 Infrastructural Linkages and Social Amenities Available in the Locality

Sungai Dua is Located at the northern part of Seberang Perai. One of the

attracting infrastructural linkages is from Sungai Dua to North-South expressway just

5min. Another local attraction is the hypermarkets around Sungai Dua are Econsave

in Raja Uda, Sunway Carnival Mall in Seberang Jaya, and Tesco beside the North-

South expressway. The transport connectivity at Butterworth is a railway station,

Penang ferry service, and the rapid bus.

3.4 Composition of Inhabitants: Ethnic and Economic Activities

The people in this area are basically occupational on government sector and

agriculture sector, especially on paddy. Malay ethnic is the majority in Sungai Dua

which is 84%, Chinese will be the second bigger ethnic at Sungai Dua 13% and

Indian and others just 3 %. However, the land used on agricultural are decreased

rapidly due to the development economy activities. Their children did not continue

the traditional economy activities. They choose to work at Urban Area to gain more

income.

(Sources: Google Map)

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4.0 INTRODUCTORY INFORMATION RELATED TO PARTICIPANTS

4.1 Demographic: Gender, Age, Educational Level and Marital Status

First participant name is Muhammad Saiful Bin Abdullah. He is 24 years old

and still single. He only studied until Form 3 PMR. He moved into Taman Sungai

Utama with his family members since 2014.

The second participant is Zulkifli Bin Baharon. He is currently 40 years old and is

married with 3 children. He finishes his secondary school at the SPM level. He was

the third person who moves into this low-cost apartment at Taman Sungai Dua Utama

on 2013.

First Participant: Zulkifi Second Participant: Muhammad Saiful

4.2 Migration History of the Head of Household and Other Members

Muhammad Saiful with his family members moves to Taman Sungai Dua

Utama on 2014 from Tasik Gelugor. His parents knew this project since 2010 through

a friend. They move over from rural area to urban area after they bought that

department.

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Zulkifli moved to this apartment on 2013 with his 3 children and wife. His

knew this project from the PERDA marketing promotion during Penang Housing Fair

at Kepala Batas.

4.3 Socio- Cultural Characteristics of the Household.

Saiful starts to work from morning until the afternoon as a stock keeper at a

small company nearly Sungai Dua. His parents work as a farmer at Tasik Gelugor.

His parents have a few hectare paddy field at Tasik Gelugor. Every morning his

parents need to go the paddy field to have a patrol and checking on the paddy.

Zulkifli is a lorry driver. Sometimes he needs to drive from Penang to Johor or from

Penang to Kuantan. After few day just return to his house. His second daughter is

studying in vernacular school to learn mandarin at SJK (C) Kai Chee, Sungai Dua.

4.4 Ownership of Capital Resources and Mean of Livelihood and Income

According to the interview, Saiful has around RM1500 of income per month.

As know, he has stayed with his parents and is currently single. Every month he will

be using RM500 as the family expenses. The other will be used as the living cost

which includes entertainment with friends. Certain balance of the money will be kept

in the bank to have a saving. Saiful mentioned that the living cost at Sungai Dua is

still affordable as compared to the Seberang Jaya.

From the interview, Zulkifli has RM2600 of income per month. He needs to

bear the family cost of living at about RM200 per month and sometimes when there is

a family gathering and it will then increase his financial burden. Zulkifli appreciated

the apartment that PERDA provides at a relatively lower cost at RM 33,000. Through

this project, he is able to own a house.

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5.0 DISCUSSION OF THE ACHIEVEMENTS ASSOCIATED WITH THE

PROGRAM

5.1 Detail Account of Benefits Received Through the Programme

PERDA housing programme to develop the rural area to balance the development

metropolitan territories in Penang. Taman Sungai Dua Utama is a programme that

gives benefits to the groups of Bumiputera at Penang. The prices of the house of

PERDA project are lower than the market price. This program enables the group with

low-income to be able to own a house at Penang.

5.2 Achievement- Comparisons Based On Pre and Post Situation

Before this program, the interviewee is still living at the rural area and they are

not able to get a house. They need to stay miles away from the town. The

infrastructure such as the supermarket is absent from the area where they stay as it is

not around the rural area. Other than that, the railway station is also far away from

their house and restaurant like KFC, Pizza Hut, and MCD is not available on the rural

area.

After this program, the group of the target are able to own a house at the town

or city, especially the Bumiputera, as they can get a discount on this project.

Bumiputera can save their money as they can pay a cheaper price as compared to the

Non-Bumiputera. This is the achievement of PERDA to help Bumiputera on socio-

economy.

5.3 Issues and Problems/Barriers- Related To Implementation and Achievement

The problems faced by the participants were the failure of the housing projects

in attracting the buyer. The agency does not have a good marketing strategy to

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promote their housing project. Most of the buyers were being introduced by their own

sibling or friend.

Another issue is that the Non-Bumiputera are not interested in this housing

project due to double standard price as a Malaysian. Therefore, most of the office lot

are still empty.

5.4 Relationship of the Programme with the Regional Development

PERDA provide this programme indirectly develop the regional economy. It

helps the housing sector growth the profit and increased the population at this area.

This programme has a strong relationship with the regional development to increase

the economy growth, Sungai Dua area starting transforms from agricultural sector to

business sectors. The income per capita on that area will increase and more job

opportunity is provided.

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6.0 SUGGESTION TO INCREASE THE EFFECTIVENESS OF THE

PROGRAM

6.1 Based On Participants Responses

Based on participant's response, they suggested the size of the house should be

bigger. Currently, the low-cost apartment has only two rooms, one living room, one

toilet and one kitchen. Therefore, they suggest the developer or PERDA to build a

three room apartment to enable the larger family to be able to fill in.

Another suggestion is that the developer should build more infrastructure such as

mosque, hall, playgrounds, 1 Malaysia Clinic and garden to easily the villages life

living.

6.2 Based On Analysis of Responses, Observations and Theoretical Knowledge

Based on the analysis of responses, observations and theoretical knowledge of

this project is a good achievement to help a rural area citizen to change to a better life

styles. By the way, the purpose of this program is just helping the Bumiputera and has

a double standard on this project.

Mostly the citizens who stay at Taman Sungai Dua Utama are Malay. The

theoretical of living in unity among the ethnic did not fulfil at this Taman Sungai Dua

Utama. Especially the next generation did not have an opportunity to exchange their

culture or interact with other ethnic. PERDA should change their objective to help the

entire rural area instead of helping only certain ethnic. This is because some of the

Non- Bumiputera is still under low-income category and stay at rural area..

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7.0 CONCLUSION

Housing development in Malaysia is spreading from the capital city to others

part of the state. The pace of development is very high and always ahead of

development plans. As a matter of fact the government development program is

tending towards achieving developed nation status in 2020. They have gone a long

way in their housing development plan. The participation of the private and public

sector have made housing for the people realistic. The housing policy of Malaysia is

to ensure that all citizens, particularly the low-income groups, have access to adequate

and decent shelter.

It is the Government resolves to supply houses for rural population through

programs such as funding home improvement project. Demographic improvements

play a prominent role in providing the statistical inputs for planning and formulation

of the government development plan in Malaysia. Especially in the affordable

housing project, government should develop urban outskirts, taking advantage of

lower land price and preparing or formulation a good road network and transportation

service on those areas to magnet the investor contribute on regional development.

However, PERDA have successes on housing sector programme which is in the

Taman Sungai Dua Utama. Previously, Sungai Dua Utama was a swamp area. After

PERDA launched the housing project, it was bringing another regional development

on economic activity, construction activity, education activity and social activity at

this housing project.

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