MARCH 14 — Social housing programmes, such as the Program Perumahan Rakyat (PPR) and Projek Perumahan Awam (PA), play a crucial role in providing shelter for low-income households. With heavily subsidised rental rates as low as RM124 per month, they ease the financial burdens, especially for those living below the poverty line.
Rental arrears remain a major challenge
Despite low rents, rental arrears remain a major challenge for local councils governing social housing, with outstanding rent reaching millions of ringgits. Rental collection is critical for managing the social housing sector as it covers the basic maintenance costs and supports the expansion of social housing projects.
Yet, it remains insufficient to sustain maintenance costs. DBKL estimates a basic upkeep cost of RM250 per unit monthly, double the rent collected. This does not include major repairs like lift repairs and burst pipes which can exceed RM300 per unit. Escalating arrears depletes limited maintenance funds, straining maintenance efforts and contributing to deteriorating living conditions in social housing buildings.
Some tenants have lived rent-free for years, owing tens of thousands in arrears. While local councils issue multiple reminders before enforcing eviction, recent strict measures — such as removing doors — have raised ethical concerns.
Is forced eviction an ethical move?
Local authorities have the right to enforce evictions, but it is important to first assess the circumstances before taking action and understand why tenants default on rent.
If the main reason for non-payment is financial hardship, then strict enforcement may be unethical and inappropriate. Some tenants struggle financially due to job loss or lack of fixed income, while others are retired or unable to work due to health reasons. In such cases, local councils should assist them in seeking support from welfare agencies or NGOs to cover rent.
Forcing eviction in such situations goes against the fundamental purpose of social housing — to provide shelter for the urban poor. Pushing these tenants onto the streets would only worsen their living conditions.
Social housing offers shelter to low-income families, but unpaid rent threatens its sustainability. — Bernama pic
However, strict enforcement is justified when tenants sublet units to third parties for profit. Some rent out at higher rates between RM600 and RM800, five to six times the PPR rent. This means that they are earning more than the local councils while depriving deserving households of social housing.
Social housing is a government asset and a limited resource, with thousands of eligible households on waiting lists. Tenants should not profit from these units at the expense of
those in genuine need. Subletting is illegal; thus, strict enforcement is necessary to ensure that social housing benefits those who truly need it.
Policy solutions: Household registry and exit plans
A key policy recommendation from Khazanah Research Institute’s social housing research is the improved management of PPR households. Issues like rental arrears and subletting often arise due to a lack of regular monitoring. Establishing a household registry would enhance the management of PPR households by tracking tenant eligibility and housing needs, ensuring that social housing benefits those most in need.
A well-structured household registry should go beyond income criteria to include demographic and economic profiles, such as household size, physical disability, and other vulnerabilities. Periodic updates every two to three years would help reassess tenants’ continued eligibility for social housing.
Exit policies should also be introduced to facilitate the transition of tenants who no longer qualify but remain in social housing due to high private rental costs. Exit policies that incorporate demand-side subsidies, such as housing allowances or vouchers, provide more affordable options and support these households’ transition to the private market.
By maintaining an up-to-date household registry and structured exit policies, local
councils can ensure fair and efficient allocation of social housing.
*Theebalakshmi Kunasekaran is a Research Associate at the Khazanah Research Institute (KRI). The views expressed here are solely the writer’s own and do not represent the official views of KRI.
**This is the personal opinion of the writer or publication and does not necessarily represent the views of Malay Mail.
