The National Housing Department has revealed that it is reviewing the latest Household Income & Basic Amenities Survey Report, as well as the new poverty line income (PLI) to help it adjust for more appropriate house prices.
According to the Deputy Housing and Local Government Minister, Datuk Seri Dr Ismail Abd Muttalib, the study is necessary following the announcement of the new PLI and classification of households by the government.
The government had recently revised the PLI from RM980 to RM2,208, based on the Household Income & Basic Amenities Survey Report (2019) released by the Department of Statistics Malaysia almost two weeks ago. Additionally, the government has also increased the income threshold for B40, M40, and T20 households, as well as further break down the three main categories into another 10 sub-categories.
“(Now) the interpretation and method of measuring affordable housing in Malaysia take the median multiple methodology as the main indicator to assess the ability to own a house,” said Datuk Seri Ismail during a session with the Dewan Rakyat. He then explained that at present, affordable house prices used in affordable housing programmes are determined via the formula of median income x 12 months x 3.0.
With the reveal of new median household incomes and the PLI, the calculation will need to be duly updated to reflect the revisions as well.
(Source: The Sun Daily)