Hornbill Unleashed

August 1, 2017

Government auditors say Iskandar Malaysia’s affordable housing rental lost RM3.5m

Filed under: Politics — Hornbill Unleashed @ 8:01 AM

Although PHSB had properly managed the rental of RIM houses and commercial units, the audit report found that it did not achieve the intended targets. — Picture by Kamles KumarRumah Iskandar Malaysia (RIM), a rental-based housing scheme in Iskandar Malaysia did not achieve its targets on rental for houses and commercial units with an estimated loss of rental income at RM3.52 million, according to the latest Auditor General’s report.

The audit report, the first for the year 2016, stated that Prisma Harta Sdn Bhd (PHSB) was tasked with assisting its parent, the Iskandar Region Development Authority (IRDA), in the operation and maintenance of the Rumah Iskandar Malaysia (RIM) Project, which is situated at Bandar Nusajaya, Mukim Pulai Johor Baru.

PHSB started its operations at Nusajaya, Johor.

PHSB’s main activities are managing the rental of 1,500 RIM houses at an affordable rate to the qualified low and middle income groups as well as the rental of 13 commercial units.

Although PHSB had properly managed the rental of RIM houses and commercial units, the audit report found that it did not achieve the intended targets.

“For these three years, the rental of housing units recorded between 70.5 per cent and 80.5 per cent only whereas the rental of commercial units was between 61.5 per cent and 84.6 per cent. The rental income for housing units in year 2013 was at the lowest of 72.8 per cent,” the report said.

It also found that the loss of rental income as of 2015 was estimated at RM3.52 million.

“Based on the PHSB Rental Debtors Aging Report as at 31 December 2015, the arrears of housing and commercial rental for 3 months and above were high which was RM762,580 (64.1 per cent) compared to the total arrears in rental debtors amounting to RM1.19 million.”

The report recommended that PHSB reduce the arrears of rental debtors in order to continuously protect its interests.

It also said PHSB should review the rental rates for commercial units which is set between RM3.08 and RM8.08 per square feet, as the average rental rate obtained from the Valuation and Property Services Department Johor Baru on January 12 this year for three surrounding areas of RIM namely Taman Nusa Sentral, Taman Nusa Idaman and Taman Nusantara was only RM2.27 per square feet.

Source : The Malay Mail Online



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