PENANG is pushing the federal government for an amendment to the Housing Development (Control and Licensing) Act 1966 that will make it illegal to rent low- and low-medium cost homes to foreign workers.

State local government, housing, and town and country planning exco Jagdeep Singh Deo said there was nothing in the law to stop cheap housing meant for Malaysians being rented out to foreigners. 

This made it difficult to evict foreign workers from such homes, he said. 

The best way to tackle the problem, the lawyer turned exco said, was to amend the federal law to make it mandatory for the sale and purchase (S&P) agreement to state such a prohibition.

Currently, the developer and buyer sign a standard S&P, regardless of the type of housing unit sold. 

“We get complaints that such units are occupied by foreign workers. Sometimes you find almost half the building occupied by them. 

“There is a housing regulation on the application form for LC and LMC units stating these homes must be owner occupied.

“But we find these units misused and we don’t have a law that says such units cannot be rented out to third parties,” he told a press conference at Komtar today. 

“If the housing developers act is amended to include the prohibition in the S&P agreement for LC and LMC units, then action can be taken against offenders.”

Jagdeep said he had raised the issue with former housing minister Nor Omar and recently, with the new minister Zuraida Kamaruddin, who had agreed that it was a national problem. 

With PH in Putrajaya, he hoped the amendment process will be sped up. 

“I think Zuraida is getting legal input on the matter after I spoke to her about it last week. 

“Hopefully the bill to amend the act can be tabled in the next Dewan Rakyat sitting for debate,” he said. 

In the meantime, Jagdeep said Penang was going ahead with the plan to build dormitories s or hostels for foreign workers. 

Penang approved guidelines for foreign worker dormitories in 2015. The state government has to date approved four projects in Juru, Permatang Tinggi, Bukit Minyak, and Mukim 12 in southern Seberang Prai. They will provide 2,026 units for 21,280 foreign workers. 

“The dorm project in Bukit Minyak with 369 rooms for 6,642 workers is expected to be ready by the end of the year. It is is now 70% ready,” Jagdeep said. 

He said one project with 220 dormitories for 3,000 workers in Batu Maung was recently approved, and state investment arm Penang Development Corporation had identified two more plots of land totalling about four hectares in Batu Kawan and North Science Park on the mainland for future dorm projects. 

“We will soon call for an RFP (request for proposals). Operators and developers interested in building the dorms can join the RFP. 

“We will look for the land for the dorms in commercial and industrial areas. But the dorms will be run by operators, who will have to follow the high specifications according to international standard requirements,” he said. 

Jagdeep said employers and local residents, whom had been engaged in dialogues since 2015, have been supportive of the plan to build foreign worker dorms. 

“We already have stakeholders waiting for the dorms. They have workers to relocate. Locals will also support this as they have been complaining about foreigners living in their housing schemes. 

“When the first dorm is ready, I believe all parties will see why we need to have them,” he said.  – June 11, 2018.