KUALA LUMPUR: The first 1Malaysia Public Housing Project (PPA1M) in Kuala Lumpur was successfully completed ahead of schedule, with zero cost to the Government thanks to the cross-subsidy method.
Prime Minister Datuk Seri Najib Tun Razak handed over the keys to 1,536 civil servants who bought PPA1M units in Bukit Jalil, on Tuesday (Feb 6) – one year and five months ahead of schedule.
“The developer takes on the project for the Government, and to support the cost we allowed the developer to start up a residential development on another nearby patch of land, which will be sold at the market rate,” he said.
Najib added that the cross-subsidy was done at a 60:40 ration, with 60% being the PPA1M developed on 7.67 acres where the Government controls price, size and quality.
“The remaining 40% is 5.11 acres of land given to the developer to build homes at market rates,” he said.
The PPA1M project was launched on April 8, 2015 and was initially scheduled for completion in May 2019, but project developer Aset Kayamas Sdn Bhd managed to complete it 17 months ahead.