Increased LC, LMC contribution charges on developers postponed

GEORGE TOWN: Implementation of the newly increased contribution charges to be paid by developers in lieu of building low-cost (LC) and low-medium cost (LMC) housing projects will be delayed until the end of the year.

Penang Housing, Town and Country Planning Committee chairman Jagdeep Singh said the state decided to delay implementing the new charges after developers voiced their concerns.

He said the postponement was to give developers time to adjust and also be ready when the new charges come into force.

"The developers must understand that the contribution charges is to build houses for the people," he said in an ad hoc press conference held after a ceremony held in remembrance of his father, former Bukit Gelugor MP Karpal Singh who died in an accident three years ago, at the Gurdwara Sahib here.

The Penang government reportedly had increased the contribution charges in lieu of LC and LMC housing from RM120,000 per unit to RM150,000 per unit.

Developers however felt the increase was too high and raised their concerns with the state administration.

Contribution charges are charges developers pay to the local authorities in lieu of public amenities or low cost housing requirements.

When contacted, Penang Real Estate and Housing Developers (REHDA) chairman Datuk Toh Chin Leong said the postponement will give developers breathing space.

"I am extremely happy with this, this is good news," he told theSun but added the amount was still high and discussions would be held with the state on the matter.