The National House Buyers Association (HBA) said People's Housing Projects (PPRs) should stay as transit homes for rent rather than for sale or ownership.
Datuk Chang Kim Loong, honorary secretary-general of the HBA, said the PPR units erected are simply temporary living quarters for those looking to buy their own homes in the future.
"They should only be rented out by the relevant agencies," he said.
Chang was commenting on the RM367 million provision under the new 2023 Budget for the construction of new PPRs to shelter an additional 12,400 people.
Prime Minister Datuk Seri Anwar Ibrahim also announced an RM50 investment to repair, replace, and maintain PPR houses during the tabling of the 2023 Budget today.
Chang said that the government's goal and aim is for these transit homes to give a temporary living space for those who want to save enough money before purchasing their own homes.
"The PPR residents should not regard the flats as their permanent homes but merely temporary abodes to shelter their families and have roofs over their heads while they endeavour to look for permanent homes," he said.
Chang said the PPR flat tenants are supposed to self-occupy until they improve their economic standings and move out, and allow those on the "waiting list" to take over possession of their units.
He said those who flout the rules by subletting their units for obvious gains should be evicted and enforcement should be meted without delay.
"They act like landlords and sublet rooms to foreigners and singles who migrate from villages to cities. These have been going on for years but it seems enforcement action is slow, even sometimes thwarted by interference.
"It is a betrayal of the purpose of building such PPR housing in the first place, which is to provide a roof for the poor and should not be used by rent-seekers for self-profiteering," he said.
Chang said that the HBA has been advocating for stronger implementation of existing standards to guarantee that low-cost housing and PPR flats are not rented out to third parties and are assigned to the appropriate target groups.
He said the tenants should go through a process of "means testing" - the process of determining how much income a person has in order to decide if they qualify for PPR "handouts".
Additionally, he said that the social benefits and welfare provided to PPR renters should be evaluated every three years by a committee within the agencies to ensure that tenants do not overstay and that those incoming target families are gradually allowed to take up residence.
"This is where enforcement must be strict so that those no longer eligible must give way to those deserving ones, but of course not to the extent of throwing them into the streets," he said.
Meanwhile, he applauded the government's decision to allocate up to RM5 billion for the Housing Credit Guarantee Plan, which will guarantee housing loans to assist those with variable earnings, such as those in the gig economy, in purchasing homes.
He said that the gig economy has been a lifesaver for many rakyats who have lost their employment and turned to ride-hailing, food delivery, and other forms of freelance work.
"These employees are still economically productive and as such, should have access to financing to buy assets such as property. However, their income may not be consistent and many lack the full documents that banks typically require from fixed-income salaried employees," he said.
Chang, on the other hand, hoped that this housing scheme would be limited to first-time home purchasers and affordable properties.
He believes it should be made available for the acquisition of secondary properties as well as principal properties straight from developers.