Changing the landscape of the city from mess to modern: Lessons learned from Kuala Lumpur

1. MALAYSIA Changing the landscape of the city from mess to modern: Lessons learned from Kuala Lumpur Dr. Wan Nor Azriyati, Dr. NoorRosly & Dr. Roselina A. Shakir Centre for Studies of Urban and Regional Real Estate (SURE) University of Malaya Kuala Lumpur, Malaysia

2. Urban Planning • Urban planning poses a key challenge to city authorities and requires considerable investment, financial, creative or managerial skills. • The practice of urban planning has been defined as “an attempt to formulate the principles that should guide us in creating a civilized physical background of human life . • Most importantly, urban planning is argued as aiming at securing a reasonable and acceptable blend of conservation and exploitation of land, as the platform for human activity. Dr. Wan Nor Azriyati, Dr. NoorRosly & Dr. Roselina University of Malaya, Kuala Lumpur

3. …Urban Planning People live in communities which are becoming increasingly urban in nature and for which local governments are increasingly important. Indeed, many writers argued that while the conditions are radically different in each locality, people's basic needs are the same: clean water, waste disposal, employment, security, basic health care, etc. Thus, the role of local government become more and more important in responding to local needs and priorities. University of Malaya, Kuala Lumpur Dr Wan Nor Azriyati, Dr. NoorRosly & Dr. Roselina

4. Aims of this paper To examine the role of the state in providing opportunity to urban poor to enter home ownership To determine to what extent the role of planning in steering the urban growth fulfill the aspirations of low income people to become part of the home owning democracy Dr Wan Nor Azriyati, Dr NoorRosly & Dr Roselina University of Malaya, Kuala Lumpur l

5. Case Study: Kuala Lumpur The city of Kuala Lumpur, the national capital of Malaysia, is the most developed and heavily populated area in the country. It covers an area of 243.6 sq kilometres. Kuala Lumpur was conferred the status as a ‘city’ of Federal Capital in 1972 Dr Wan Nor Azriyati, Dr NoorRosly & Dr Roselina University of Malaya, Kuala Lumpur

6. Average Monthly Household Income, 1995-1999 Dr Wan Nor Azriyati, Dr NoorRosly & Dr Roselina, University of Malaya, Kuala Lumpur

7. The City Hall of Kuala Lumpur The City Hall of Kuala Lumpur , the administrative body headed by the Datuk Bandar (Lord Mayor) exerts control over the city. The Prime Minister of Malaysia with the consent of the King appoints the Mayor. The Mayor is a civil servant and thus, subject to the rules and guidelines by the Department of Civil Services Dr Wan Nor Azriyati, Dr NoorRosly & Dr Roselina, University of Malaya, Kuala Lumpur

8. Sources of revenue for CHKL Dr Wan Nor Azriyati, Dr NoorRosly & Dr Roselina University of Malaya, Kuala Lumpur

9. The role of state in providing home ownership to the low-income people The role of state at the national level in meeting housing needs of low-income households have evolved from being an enabler during the early post independence to a distinctive provider role after the establishment of the New Economic Policy (NEP) in early 1970s. The shift of role to state provider was part of the social agenda to create political stability amongst a mixed ethnic population. However, when the country’s economy was considered relatively mature, the state began to relinquish this role as provider and instead shifted the role to the market. University of Malaya, Kuala Lumpur Dr Wan Nor Azriyati, Dr NoorRosly & Dr Roselina

10. What is low cost housing? • the houses which selling prices were fixed by the government at RM42, 000 (about US$12,000) per unit • the total built-up area of 600 square feet depends on the location of the housing scheme. • The targeted groups would be those squatter colonies, urban poor and low income citizens whose monthly incomes were below RM1,500 (about US$450) • Must register their interest to purchase through “open registration system”. University of Malaya, Kuala Lumpur Dr Wan Nor Azriyati, Dr NoorRosly & Dr Roselina

11. Housing programmes established by CHKL at the local level. 1. Housing provided by developer through planning permission (30% - 50% low and low medium quota) This programme involved low-cost housing program whereby private developers have to provide at least 30 per cent low cost housing in their housing development as planning obligation. The active participation of the private sector in providing housing for the low income group has been made possible by legislation provided under the Federal Territory (Planning) Act 1982 (Act 267) and Town and Country Planning 1976 (Act 172). University of Malaya, Kuala Lumpur Dr Wan Nor Azriyati, Dr NoorRosly & Dr Roselina

12. …Housing programmes established by CHKL at the local level. 2. Privatisation and joint venture project City Hall of Kuala Lumpur started its privatisation of the land development programme in 1983 to coincide with the privatisation policy implemented by the federal government in that year. In this programme, the state played both the role as enabler and provider. CHKL provides the sites to be developed whereas the private sector constructs the units. Dr Wan Nor Azriyati, Dr Noor Rosly & Dr Roselina University of Malaya, Kuala Lumpur

13. …Housing programmes established by CHKL at the local level 3. Joint venture project with Employees Provident Fund (EPF) This program is considered distinct from a normal joint venture project between public and private sector. EPF is a government body, thus this type of joint venture project demonstrate a public-and-public joint venture program EPF provides the site and finances the project with interest rate charged at lower than the market rate. CHKL coordinates and monitors the project including appointing the contractor to construct the housing units Dr Wan Nor Azriyati, Dr Noor Rosly & Dr Roselina University of Malaya, Kuala Lumpur

14. …Housing programmes established by CHKL at the local level 4. Integrated public housing programme This programme is a special two-prong project designed in 1998 to solve the squatters’ problem and to revitalise the weak economy due to Asia Financial Crisis faced by the country. The thrust of this program is to resettle about 24,000 squatters’ families to a formal planned housing Dr Wan Nor Azriyati, Dr NoorRosly & Dr Roselina University of Malaya, Kuala Lumpur

15. Case study : Development of squatters’ area of Kepong The area was formerly known as an unorganized squatters’ colony area at Kepong located about 8km from city centre. About 1,000 units of squatters in this 88 acres of CHKL’s land. Dominated by Chinese followed by a small percentage of Indians and Malays. Dr Wan Nor Azriyati, Dr NoorRosly & Dr Roselina University of Malaya, Kuala Lumpur

16. View of typical squatters’ settlements in Kuala Lumpur Dr Wan Nor Azriyati, Dr Noor Rosly & Dr Roselina University of Malaya, Kuala Lumpur

17. Low cost flats of Metro Prima, Kepong Low cost flats Dr Wan Nor Azriyati, Dr NoorRosly & Dr Roselina University of Malaya, Kuala Lumpur

18. Low cost units of Metro Prima • Joint-venture project between private developer and CHKL. • The low-cost flat were first developed to resettle squatters. This phase was completed in August 2000. • To be eligible as buyer, the squatters have to register with City Hall of Kuala Lumpur under the Open Registration System. Dr Wan Nor Azriyati, Dr NoorRosly & Dr Roselina University of Malaya, Kuala Lumpur

19. Building Plan Building Plan of Low Cost Unit Mutiara Magna Building Plan of Low Cost Unit Mutiara Magna Dr Wan Nor Azriyati, Dr NoorRosly & Dr Roselina University of Malaya, Kuala Lumpur

20. Facilities provided for the residents Dr Wan Nor Azriyati, Dr Noor Rosly & Dr Roselina University of Malaya, Kuala Lumpur

21. …Facilities provided for the residents Dr Wan Nor Azriyati, Dr Noor Rosly & Dr Roselina University of Malaya, Kuala Lumpur l

22. The households survey • 200 sets of structured questionnaires were designed for the face-to-face interviews with the residents of low cost units at Metro Prima, Kepong to seek their experience on low cost home-ownership. Dr Wan Nor Azriyati, Dr NoorRosly and Dr. Roselina, University of Malaya, Kuala Lumpur

23. The findings • Almost two third of the occupiers were enjoying the home-ownership experiences and were satisfied with their present living conditions. • Although the services provided (e.g lift services, cleanliness of the flats) frequently received complaints from the occupiers, the accessibility and the locations of the low-cost houses seem to overcome all these shortfalls. • Most of the owners were reluctant to sell their houses. Dr Wan Nor Azriyati, Dr Noor Rosly & Dr Roselina University of Malaya, Kuala Lumpur

24. Component of Races Dr Wan Nor Azriyati, Dr NoorRosly & Dr Roselina University of Malaya

25. Status of Respondent Dr Wan Nor Azriyati, Dr NoorRosly & Dr Roselina, University of Malaya, Kuala Lumpur

26. Occupation and Highest Education Status of Respondents Dr Wan Nor Azriyati, Dr NoorRosly & Dr Roselina International Conference on China’s Urban Land and Housing in 21st

27. Previous residence of RespondentSuria Magna Dr Wan Nor Azriyati, Dr NoorRosly & Dr Roselina University of Malaya, Kuala Lumpur

28. Perceptions of home-ownership experience Dr Wan Nor Azriyati, Dr NoorRosly & Dr Roselina, University of Malaya, Kuala Lumpur

29. Willingness of Owners to Transfer Their Ownership Dr Wan Nor Azriyati, Dr NoorRosly & Dr Roselina University of Malaya, Kuala Lumpur

30. Conclusions The wide range of policies implemented at the local level has indeed contribute more opportunity to urban poor to enter home. Most importantly, the state has not only successfully in providing opportunity to the urban poor to enter home ownership but has also achieve in transforming the former squatters colony into a self-contained township. The wish of many residents particularly the squatters to remain in an area they are familiar with is also successfully met. Dr Wan Nor Azriyati, Dr NoorRosly & Dr Roselina University of Malaya, Kuala Lumpur

31. E-mail: wyati@um.edu.my THANK YOU Dr. Wan Nor Azriyati, Dr. NoorRosly & Dr. Roselina A. Shakir Centre for Studies of Urban and Regional Real Estate (SURE) University of Malaya Kuala Lumpur