1malaysia Case Study

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1Malaysia is an on-going programme designed by 6th Malaysian Prime Minister, Dato’ Seri Najib Tun Razak on 16 September 2010, calling for the cabinet, government agencies, and civil servants to more strongly emphasise ethnic harmony, national unity, and efficient governance. One of the 1Malaysia project that lasted throughout the country nowadays is 1Malaysia Public Housing Corperation or known as PR1MA (Perumahan Rakyat 1Malaysia) which starts in 2012 until today under PR1MA Acts 2012. PR1MA Act 2012, which was passed by Parliament on 29 November 2011 and gazetted on 9 February 2012 to plan, develop, construct and maintain affordable housing for middle-income households in key urban centres. Perbadanan PR1MA Malaysia was established under…show more content…
Reducing house prices PR1MA is non-profit in nature. Unlike its commercially-driven counterparts, PR1MA’s developments are not priced with high margins but with sufficient margins to fund its overheads and working capital. Innovative cost reduction strategies and diligent financial management are key to its long-term financial sustainability. PR1MA adopts a holistic approach to reduce cost along the entire delivery value chain of development, as illustrated in Figure 5. To reduce the cost of housing, PR1MA employs sustainable cost management strategies and optimises costs throughout its value chain, i.e. in the sourcing of land and materials, standardisation of design and planning, and building as well as funding activities. In sourcing for land, its strategy is to obtain land at nominal cost where possible. PR1MA identifies suitable land, including government land earmarked for residential purposes and idle land belonging to the Government, state governments, government agencies, government-linked companies and private owners. In sourcing for building materials, bulk purchases or centralised procurement lead to economies of scale. Standardised design and planning also help reduce the costs of design for both PR1MA’s own direct developments and partner developments. To reduce overall construction costs, PR1MA looks to innovative and efficient building and construction technologies such as Industrialised Building Systems (IBS) and the cutting-edge Building System Technology. As an incentive, a facilitation fund is also provided by the Government through PR1MA directly as well as via Unit Kerjasama Awam Swasta (UKAS) to developers that PR1MA collaborates with. These cost-reduction strategies ensure that PR1MA homes will be 20% below the market price for similar units in surrounding areas, without any compromise on

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