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Private Sector Non-participation In Low-cost Housing Concerns

The Minister for Finance, Aiyaz Sayed-Khaiyum, has raised concerns about the lack of private sector participation in low-cost housing development projects. He stated it is always Government which is expected
28 Nov 2014 10:45
Private Sector Non-participation In Low-cost  Housing Concerns

The Minister for Finance, Aiyaz Sayed-Khaiyum, has raised concerns about the lack of private sector participation in low-cost housing development projects.

He stated it is always Government which is expected to undertake such projects.
However, Mr Sayed-Khaiyum said in countries like Malaysia, they have the private sector developing land and making money through low-cost housing.

“Over here in Fiji, the Government is expected to do everything. It is a fact,” he said.

“So most people in the business sector do not even venture into these areas because they are deemed too risky.

“The commercial banks do not even lend money for that kind of development. So it is a combination of factors.”

Mr Sayed-Khaiyum was responding to questions during a post Budget Forum this week in Suva.
The forum was jointly organised by the Fiji Chamber of Commerce and Industry, Suva Chamber of Commerce and Industry and the Fiji Australia Business Council.

Mr Sayed-Khaiyum did acknowledge that as Government, it is nevertheless their role to ensure there are such housing development projects.

Restrictions clarified
Meanwhile, the Minister has already clarified that non-residents will still be able to purchase freehold land or lease Crown Land for tourism development purposes and/or industrial and commercial purposes.

This is despite amendments in the Land Sales Act restricting non-residents from buying freehold land or leasing Crown land for residential purposes.

Feedback:  rachnal@fijisun.com.fj

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