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TAWAU: The State Government should consider apartment projects to address the shortage of housing affecting urban and semi-urban residents through a Rent-To-Own (RTO) concept.

Such an initiative would also serve to tackle the shortage of affordable housing and the high cost of home ownership, particularly in urban areas, which has forced many city dwellers to rent houses or rooms, and in some cases, even live among squatter.

Deputy Secretary-General of Gabungan Rakyat Sabah (GRS), Datuk Armizan Mohd Ali, hoped the proposal could be raised during the debate on the presentation of the 2026 State Budget, as part of efforts to provide comfortable housing for those in need.

“The Chief Minister has stated that the State Government’s focus next year will be on resolving long-standing issues related to water, electricity and roads.

“However, we believe that with additional fiscal space through the RM600 million interim special grant and Sabah’s 40 per cent revenue entitlement in 2026, I hope one more important aspect can be added, namely housing,” he said. 

Armizan said the Sabah Maju Jaya (SMJ) 1.0 Roadmap has proven successful in implementing the Rumah Mesra SMJ programme, which helps the underprivileged in rural areas to own homes.

In this regard, the State Government, which will receive additional fiscal space from the special grant and Sabah’s revenue entitlement, is also expected to be prepared to pave the way for the implementation of apartment projects to address the people’s housing needs.

“This means the State Government is encouraged to implement housing programmes for the people in the form of apartments under the RTO concept, which is relevant and important for residents in urban and semi-urban areas.

“There are people who are forced to rent homes at RM500, RM1,000 and RM1,500 per month. But with the implementation of the RTO programme, they would not only be renting at lower rates, but in the long term be able to own their homes.

“While those living in rural areas may still own land, many in urban, semi-urban or fringe areas are still merely renting homes,” he said.

According to Armizan, the Program Residensi Rakyat (PRR), designed under an apartment concept, involves funding from the Federal Government and was introduced to replace the discontinued Program Perumahan Rakyat (PPR), which was based on flat-type housing.

He believed there is a need for the GRS-led State Government to include an affordable apartment housing programme in the SMJ 2.0 agenda, given the urgent needs of the people, which should be addressed promptly.

“However, the most important matter that must be expedited by the State Government is identifying locations that can be gazetted for the implementation of these housing projects.

“As long as land is still available, these areas should be gazetted immediately as land reserves for public housing. We know that terrace houses are also needed, but there must be a balance. Do not focus solely on terrace houses.” 

Armizan expressed support for a proposal by Tawau Member of Parliament Datuk Lo Su Fui for the State Government to consider building low-cost public housing projects in the form of flats, similar to the PPR.

Armizan said both proposals (apartments and flats) are closely linked, particularly in helping to provide housing for the M40 and B40 income groups in urban and semi-urban areas.

“We need to assess the type of projects that are suitable based on the location. For example, some areas may have a greater need for flats, particularly for the low-income group, while the middle-income group may require apartments.

“The cost of purchasing terrace houses today is very high. Therefore, it will be a good move if we could provide flats or apartments for those who need them,” he said.

Touching on the potential for both public housing plans, Armizan noted that the recently presented 2026 Budget did not yet take into account the RM600 million incentive and Sabah’s 40 per cent revenue entitlement.

“There is still additional room for new initiatives to be introduced. I believe this includes taking into account the RM600 million special grant, and the Prime Minister has also mentioned that there will be more specific discussions regarding the 40 per cent entitlement in January.

“In line with those discussions, we hope that a decision on the 40 per cent special entitlement can be finalised before the presentation of SMJ 2.0 next year,” he said.

Also present were Assistant Minister of Women, Health and Community Wellbeing cum Kukusan Assemblywoman Datuk Rina Jainal, as well as Balung Assemblyman Syed Ahmad Syed Abas.