Fiabci former president Datuk Teo Chiang Kok said property developers now spend a large sum of money to provide infrastructures like roads, power sub-stations, water supply pipes and water storage tanks.
"We subsidise a lot to provide these infrastructure," he told reporters after the federation's morning talk with its global president Enrico Campaglani in Kuala Lumpur yesterday.
Teo, who is also See Hoy Chan Holdings group director, said by giving subsidy cuts to developers especially for projects that involve infrastructural work, it will enable them to offer houses at a more affordable price.
"It will give a big impact on prices of houses and better influence buyers when deciding to buy a property," Teo said.
Teo said the subsidy reduction must be done in small steps to enable industry players to adjust their operation costs and pricing of properties.
"There will definitely be changes in the pricing system for big items such as houses if the government reduces subsidy on non-consumer items," he said.
By Business Times
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