CRISIS IN URBAN AND HOUSING ISSUES A COMPARISON BETWEEN UNITED STATES AND MALAYSIA

DEEN ARIFF MASHITAH HAJAR DIN SYAFAF

American Dream Vs Malaysian Dream = ? DEFINITION House as basic need Housing is a merit good American Dream Vs Malaysian Dream = ? Homeless Squatters

POLICY ANALYSIS MODEL - Dunn Policy Relevant Info POLICY PROBLEM POLICY ALTERNATIVE POLICY ACTION POLICY OUTCOME POLICY PERFORMANCE - Dunn Policy Relevant Info

Background of Problem Migrations of the affluent to the suburb areas. UNITED STATES Migrations of the affluent to the suburb areas. - affected the American politics and lower-income workers in the urban MALAYSIA High rate of rural-urban migration. Squatters in urban area- cause by rapid industrialization and urbanization by NEP 1970-90.

Policy Problem: Causes UNITED STATES Homeless a. Falling incomes b. Reductions in safety net programmes c. Affordability of housing and the homeless d. Individual pathologies Greatest subsidies placed among the wealthiest - 20% of the population Rising cost of unsubsidized housing lead to increasing housing problem MALAYSIA Affordability of housing price with reference to monthly house hold income – price must be within range whereby the buyers can obtain financing to facilitate purchase. Accessibility of housing to M’sians in terms of demand and supply of unit houses- adequate supply of housing units the purchaser to choose from and by. Quality of housing construction.

Policy Problem: Market Failure UNITED STATES A major problem; labor markets drive the wages of people below the level - income too low and private housing markets cannot provide affordable house for them MALAYSIA Shortage in supply of affordable shelter for low income cause squatter in urban area. Deficiency in supply of housing information cause mismatch of supply and demand mechanism in housing industry. Lack of government research on local housing resources cause rising price of housing and reliance to imported material and technologies. Private companies have no interest in low cost housing project since it is not profitable.

Policy Problem: Stakeholder and Actors UNITED STATES Stakeholders: Government (U.S Housing & Urban Development) housing markets (private sector) housing owners Actors: 1) government 2) housing markets MALAYSIA Stakeholder: People- Purchaser Private Sector (Housing Construction Industries) Actors: Ministry of Housing and Local Government National Housing Development Peninsular Malaysia Town & Country Planning Development National Landscape Department Sewerage Service Department Malaysia Fire and Safety Development Houses Buyers Association Real Estate and Housing Developers’ Association

Policy Alternatives UNITED STATES MALAYSIA Several policy options ; 1. shelter 2. education 3. substance-abuse counseling 4. job-training 5. medical treatment Target group: low-skilled labors. MALAYSIA Prefabricated system to speed up construction compared to conventional bricks system. Facilitating role by government by giving incentive to private company. Regulatory measures on low cost housing. Buying from private sector Increasing the stock of low cost housing

Policy Actions UNITED STATES MALAYSIA i. tax deduction Goals: U.S HOUSING POLICY Goals : provide every American with “a decent house in a suitable living environment” i. tax deduction - deduction of money from the income ii. mortgage assistance - subsidy to the middle class iii. low-income assistance - eligibility - public housing - tenant-based vouchers and rental vouchers - project-based assistance MALAYSIA Through National Housing Policies programs from First M’sia Plan 1966-1970 up to Seventh M’sia Plan 1996-2000. Goals: To ensure social-economic stability. To promote national development. To ensure all people regardless of their income to live in decent house. Provision of housing- low income people in urban areas. Eradication of poverty and restructuring of society.

Policy Outcomes Table 1 Table 2 Table 3 UNITED STATES MALAYSIA An increasing in spending of their incomes on housing without purchasing other necessities Number of renter households increased since 1970 The existence of homeless remain. - since1996 - 2005: American homeless population are between 444,000 and 842,000 (Dpt.of Housing and Urban Development) - especially among African-American, women, young people are increased in number. MALAYSIA Table 1 Table 2 Table 3

Policy Actions: Contd.. MALAYSIA Objectives: To provide adequate, affordable and quality housing for all Malaysians, particularly low income group Every family to own a house Table A

Policy Performance UNITED STATES MALAYSIA The collective effort in overcome the problem of homeless has been challenged as unworkable and unjustified. - due to problem of homeless is remain The goal of the policy is not achieved – it’s a failure of US housing policy. MALAYSIA In General, government’s housing policies have not met their goals and objectives. Why? Government regulation failed to protect consumer interest. Lack of coordination between federal and state government. Lack of affordable housing. Deficient housing information. Deficient research and development of building materials and building technology. Defective housing quality

Recommendations UNITED STATES Public policy effort to deal with homelessness must first identify the homeless population and determine their needs. Serious policies must include job training and opportunities for employment in occupations that pay enough to make housing affordable. Political mobilization of individuals, community action and other committed groups are important in assisting the income distribution at the bottom level. MALAYSIA Legislation review Cooperation implementation Land and housing development rationalization Licensing qualification

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