KUALA LUMPUR: The Real Estate and Housing Developers’ Association (REHDA) Malaysia has lauded the recent revision of Sewerage Capital Contribution (SCC) rates by the National Water Services Commission (SPAN), citing its potential to enhance housing affordability and support a more balanced property development landscape.
Effective 1 March 2025, the revised SCC structure introduces a tiered pricing system that aligns sewerage charges with property value. Under the new framework, SCC rates now range from RM1,000 for units priced at RM80,000 and below, to a maximum of one per cent of the selling price for properties priced at RM500,000 and above.
REHDA said in a statement that this recalibration is a significant step towards easing cost pressures on developers and, ultimately, delivering more affordable homes to the market. The association described the revision as a much-needed measure to ensure the long-term sustainability and accessibility of the housing sector.
REHDA President Datuk Ho Hon Sang called the move a “positive step for all industry stakeholders” and praised the government for its attentiveness to industry feedback. He emphasised that the downward adjustment of SCC rates was one of several long-standing concerns raised by the association in its ongoing dialogues with policymakers.
“We hope the reduction will enable developers to pass on cost savings to homebuyers,” said Datuk Ho. “In addition, we urge both federal and state-level authorities to undertake similar reviews of other contribution charges affecting the sector, ensuring they remain fair and reflective of current market conditions.”
The SCC revision is expected to provide greater financial flexibility to developers, particularly those focused on the affordable housing segment, and may contribute to improved housing access for lower- and middle-income Malaysians.
–Bernama
