Malaysia

Sabah government rules out rent-to-own plan for PPR units, citing need for housing rotation

Dozens of families still occupy fenced-up flats in Tanjung Aru without electricity or water after eviction orders, while Kampung Likas families await resettlement

Updated 10 months ago · Published on 07 Jul 2025 1:59PM

Sabah government rules out rent-to-own plan for PPR units, citing need for housing rotation

by Jason Santos

THE Sabah government has no immediate plans to convert its public housing (PPR) units into rent-to-own homes, citing the need to keep the scheme accessible to a wider pool of temporary tenants.

Deputy Chief Minister II Datuk Seri Dr Joachim Gunsalam told the State Assembly that the current policy was to offer PPR units on a rental-only basis, to ensure availability for others still in need.

“For your information, our current policy is rental only. We give these tenants the opportunity to eventually own a home — whether it is low-cost, affordable, or other types of housing.

“This is just temporary. If we convert it to rent-to-own, the problem is that many others are still waiting to rent these houses.

“So now, the policy is rental, and they are given the opportunity. Later, if they earn more, they can buy on their own,” he said.

The Projek Perumahan Rakyat (PPR) is a federally funded low-cost housing programme designed to provide temporary rental units for low-income families. In Sabah, PPR implementation is handled through agencies such as the Sabah Housing and Town Development Board (LPPB).

Joachim was responding to a supplementary question by Lamag assemblyman Datuk Seri Bung Moktar Radin, who pressed the government to revisit the policy considering Sabah’s rising property prices.

“Are you aware, Minister, that in Sabah, affordable housing is extremely limited?” Bung asked.

“In fact, house prices in Sabah are higher than the rest of Malaysia. That needs to be studied. A lot of civil servants and the public are complaining that housing here is the most expensive in Malaysia,” he added.

He argued that long-time PPR tenants deserved a chance at ownership, saying many had rented for years with no path to owning a home.

Joachim acknowledged that demand for PPR units remains high but maintained that the assistance is meant to be transitional.

“These houses are very popular in Sabah. People are fighting for them. But the intention was always for them to be rented temporarily — maybe three years — while people find a permanent home.”

He reminded the House that PPR units are a federal initiative, while the state contributes by building affordable homes through LPPB, which also manages housing applications and construction.

“Maybe the honourable member can raise this in Parliament in the future,” Joachim added, referring to Bung, who is also the Member of Parliament for Kinabatangan.

Evicted families still living in Tanjung Aru flats without water, power

Tanjung Aru assemblyman Datuk Wong Hong Jun raised concerns over the fate of 50 household heads still occupying the Tanjung Aru flats, despite being served eviction notices.

The flats, which are owned by LPPB, are slated for redevelopment, though no replacement housing has been announced for residents who were deemed ineligible or who declined relocation.

Joachim said 237 out of 315 former tenants had been offered PPR units.

Of those, 124 rejected the offers — mostly because the new locations were too far from schools, hospitals, or workplaces. Another 58 were deemed ineligible, and 20 were already homeowners.

“As of 3 July 2025, 55 residents have not yet moved out,” he said.

Wong had earlier noted that 56 families still live in the flats.

“The flats are fenced up, electricity and water have been cut, but they are still there, living in terrible conditions,” he said.

He urged the ministry to instruct LPPB to respond to his repeated requests for a meeting.

“Some of them are really suffering. One man, Robert, has been there for over 40 years. He’s sick and alone.

“How is he not qualified? Can’t the ministry reconsider the criteria?

“At the very least, meet with us and LPPB so we can understand what’s going on,” he said.

Joachim did not address Robert’s case specifically but responded: “We are always open. I want to meet you together with LPPB to see what’s happening. Don’t worry. Anytime.”

Kampung Likas families to be resettled on acquired land

The State Government has confirmed that six families from Kampung Nelayan 1 in Likas — whose homes were demolished — will be resettled on newly acquired land.

Chief Minister Datuk Seri Hajiji Noor told the assembly that the two-acre parcel, known as CL.015669799, has been gazetted for village resettlement, and compensation letters have been issued.

“The site belongs to MLGH (Sabah) Sdn Bhd, not Rimdaya Sdn Bhd. A land acquisition declaration under Section 3 of the Land Acquisition Ordinance (Cap. 69) was gazetted on 5 and 12 June 2025. DBKK has been authorised to take possession of the land,” he said.

The demolition had previously sparked controversy, as affected families claimed they were displaced without clear notice or relocation plans.

Darau assemblyman Azhar Datuk Matussin asked when the families could begin building their homes. Hajiji replied: “It depends on DBKK and the villagers. They may enter the area anytime after DBKK completes the layout planning.”

No timeline has been given, but the layout process is expected to be handled by DBKK in coordination with the affected residents. - July 7, 2025 

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