Response to Written Question PT32

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YANG BERHORMAT PEHIN ORANG KAYA INDERA PAHLAWAN DATO SERI SETIA HAJI AWANG SUYOI BIN HAJI OSMAN

QUESTION:

YANG BERHORMAT PEHIN ORANG KAYA INDERA PAHLAWAN DATO SERI SETIA HAJI AWANG SUYOI BIN HAJI OSMAN is asking the MINISTER OF DEVELOPMENT to state the plans for (i) developing houses under the National Housing Scheme using new methods such as PPP and (ii) identifying new land sites to be allocated under the Indigenous Land Scheme. RPN has facilitated home ownership and, Alhamdulillah, eased housing provision. However, the list of housing applicants has increased, as has the waiting time.

YANG BERHORMAT MINISTER OF DEVELOPMENT

RESPONSE:

The provision of housing under the National Housing Scheme (RPN) is one of the priorities of the Government of Kebawah Duli Yang Maha Mulia Paduka Seri Baginda Sultan and Yang Di-Pertuan of Negara Brunei Darussalam to enhance the well-being of His Majesty's subjects.

To date, more than 31,000 housing units have been provided nationwide under the National Housing Scheme. These housing projects have been fully funded by the Government from the 5th to the 11th National Development Plan with an estimated expenditure of around BND 4.03 billion for the development of RPN housing.

On average, the Government bears the cost of BND 130,000 per house, with a Government subsidy of approximately 50% per house. This means roughly the total Government subsidy since the inception of the National Housing Scheme is around BND 2 billion. This expenditure clearly demonstrates the Government's commitment to helping citizens own affordable housing, in line with the policy of Kebawah Duli Yang Maha Paduka Seri Baginda Sultan and Yang Di-Pertuan of Negara Brunei Darussalam to assist those in need in acquiring housing.

Currently, it is undeniable that housing demand is increasing year by year, and the waiting time to receive a house is also getting longer. Therefore, the Ministry of Development is focusing on developing several new approaches, including exploring the Public-Private Partnership (PPP) method in housing development, as well as identifying new land sites for housing use under this scheme. This is crucial to ensure the sustainability of the National Housing Scheme in the long-term financially while still fulfilling the policy to provide housing to those in need.

• Plan to develop houses under RPN through PPP:

  The Ministry of Development through the Housing Development Department has initiated steps towards a PPP model in housing development. Currently, the Housing Development Department, together with Brunei Economic Development Board (BEDB), has identified the ‘Developer Housing Scheme’ concept based on PPP.

  Through this concept, the Housing Development Department will collaborate with qualified local housing developers to build houses on Government land specifically allocated for this program. Eligible applicants of the National Housing Scheme who can secure bank financing will be offered to purchase the houses directly from private developers. This model differs from the previous method (Government fully funds construction and hands over the house) because the developer will bear the construction cost and sell to RPN buyers at the cost price of construction. Meanwhile, the Government will provide subsidies in the form of free or nominal long-term lease land grants and basic infrastructure (roads, street lights, water supply, and electricity) on the site. With the land and infrastructure subsidies by the Government, the selling price of PPP houses can be maintained at an affordable level, lower than the market price for equivalent houses.

  The PPP housing scheme aims to increase the housing construction capacity with the involvement of private sector funds and expertise, thereby reducing the Government's financial burden. To ensure the success of this concept, the Housing Development Department and BEDB will engage with financial institutions (banks) in the second quarter of 2025.

  This dialogue aims to gather input from banks regarding the loan financing scheme for RPN buyers under the PPP model as an example, loan structure, subsidized interest rates, or Government guarantees if necessary. In addition, briefing and discussion sessions with local property developers will also be held in the second quarter of 2025 to inform in detail about the Developer Housing Scheme mechanism and developer selection criteria.

  The Housing Development Department will ensure that only financially and technically capable developers are appointed, ensuring smooth project execution, and buyers receive quality housing on time. Initially, this PPP pilot scheme is intended to be launched in one of the RPN areas in the near future once all preparations and agreements are finalized.

  In the long run, if the PPP model proves successful, it can be further expanded and become a permanent component of the national housing program. The main objective is to accelerate the rate of new house construction each year (with private sector capital injection) without compromising RPN’s social goals as the Government still provides housing subsidies. Simultaneously, the Government can focus allocations on those most in need and other infrastructure projects, while the private market helps meet housing demand more flexibly and innovatively.

• New land sites: Since 2010, the Government has consolidated the National Housing Plan (RPN) and the Indigenous Land Scheme into one scheme, namely the National Housing Scheme, under which the Housing Development Department has identified new land sites for house construction under the National Housing Scheme.

  After the completion of terraced houses in the National Housing Area Kg. Lugu Phase 2 and ongoing terraced house construction in the National Housing Area Kg. Tanah Jambu Phase 7, the Housing Development Department has nineteen (19) reserved land sites nationwide covering all four Districts. These sites have been specifically reserved for future housing development under the National Housing Scheme.

  Besides these 19 reserve sites, the Housing Development Department, together with the Town and Country Planning Department, is also examining five (5) new land sites for their suitability as RPN housing areas. These new sites involve several locations in the Brunei and Muara District, Tutong, and Belait, identified as potential but still in the inception stage. Studies include land suitability analysis, basic infrastructure preparation costs, as well as environmental and community impact. The current status of these five sites is the initial concept study stage and requires going through planning approval and budget acquisition processes before they can be gazetted as new RPN sites.

In the context of long-term planning, the Housing Development Department is also exploring the concept of vertical housing or apartment types. This approach aims to maximize the use of limited land sites more efficiently while considering the capability of National Housing Scheme applicants.

The proposal for vertical or apartment-type housing needs to be thoroughly explored and evaluated from various perspectives to ensure it meets the needs of the people in the long term. Considerations in terms of design suitability, reasonable construction costs, and rational subsidy levels are among the factors that need to be considered in evaluating this proposal.

In conclusion, the Ministry of Development will continue to take proactive actions to address future housing provision challenges. This includes exploring alternative financing models (PPP) to enable more houses to be built quickly, as well as planning new sites, including potential vertical development to optimize land use. These reform measures are hoped to accelerate the achievement of the goals of providing adequate, quality, and affordable housing to the citizens, thereby continuing the legacy of the National Housing Scheme as a premier welfare initiative in Negara Brunei Darussalam.