'Govt involvement in affordable housing market harmful'

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PETALING JAYA: Excessive regulation and the government’s involvement in the affordable housing market are detrimental to the sector’s performance, said an economist.

Carmelo Ferlito of the Center for Market Education believes the presence of the government in the affordable housing segment is crowding the market and keeping investors away.“This is why many developers prefer to develop high-end properties. How can private developers compete with the government?” he said. Ferlito told FMT the government should focus instead on encouraging the private sector to supply affordable housing, including removing “distortions” created by minimum housing standards.

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