By Karen Bong
KUCHING, May 20: Padungan assemblyman Chong Chieng Jen has urged the Sarawak government to fine-tune the requirement for developers to make financial contributions in lieu of building affordable housing units on land 10 acres and above, stressing that it is unfair to impose a flat rate across all land in Kuching due to significant variations in land value.
Debating the Land Code (Amendment) Bill, 2025 during the Sarawak Legislative Assembly (DUS) sitting today, Chong expressed support for the government’s policy requiring developers of large housing estates to contribute financially to the State’s affordable housing programme.
However, he pointed out that the implementation needs recalibration to account for the stark disparities in land prices across different parts of Kuching.
“Land in the city of Kuching like up to the third or fourth mile, land in certain locations can fetch the price of up to RM8 million to RM10 million per acre. But in areas like Moyan or Matang, which are still classified as town land, land prices may only be RM300,000 to RM400,000 per acre,” he said.
Chong explained that under the current policy, developers are required to contribute the equivalent of 1.3 affordable housing units per acre—valued at RM110,000 per unit—for any land development exceeding 10 acres. This translates to a contribution of RM130,000 per acre regardless of location.
“So for a land which costs RM10 million an acre, the imposition of RM1.3 million is just about 10 per cent additional cost. But for a plot of land, 10 acres costing maybe RM1.5 million, 10 acres RM50 million, to develop that, the government imposed RM1.3 million levy of housing contribution or financial contribution.
“It constitutes about less than two per cent of the land cost. But for a piece of land in Moyan, Matang, which costs about RM500,000 per acre, which is RM5 million, 10 acres, the imposition of RM1.3 million on the 10 acres of development constitutes about 25 per cent of the land cost,” he stressed that this disproportionate impact is unfair to developers building in more affordable areas.
He called on the government to introduce a more equitable, location-based formula for the contribution to avoid overburdening developers, particularly those operating in Kuching’s outskirts or in other cities such as Sibu.
Chong also raised concerns over the social impact of high-rise residential developments being built in established low-rise neighbourhoods due to rising land costs in urban centres.
“Developers buying expensive plots in the city have no choice but to build condominiums to turn a profit. But this creates disruption to existing residents—especially when amenities like rubbish collection centres are placed right at their doorsteps,” he said, citing the ongoing construction of a high-rise residence at Jalan Hup Kee where the approved plan places the condominium’s waste disposal facility directly in front of existing homes at Lolong Hup Kee 2.
“The stench and daily inconvenience are unbearable for the affected residents,” Chong said, urging the Deputy Premier and the Sarawak Planning Authority (SPA) to revise the approved development layout to move the facility to a less intrusive location on the same lot.
He further appealed for the government to adopt a “least disruptive” principle in approving future development plans, striking a balance between development needs and the rights of long-term residents.
The Land Code (Amendment) Bill, 2025, tabled by Deputy Premier and Second Minister for Natural Resources and Urban Development Datuk Amar Awang Tengah Ali Hasan, aims to modernise Sarawak’s land governance framework. The bill covers 24 amended sections and introduces three new ones to enhance enforcement, streamline planning, and integrate digital innovation in land management.
Structured into four core categories, the amendments address updates to functions and procedures, definitions and policies, enforcement and compliance measures, and the incorporation of technology to future-proof Sarawak’s land administration system. — DayakDaily
