KUALA LUMPUR (Feb 3): The Real Estate and Housing Developers Association Malaysia (REHDA) is urging the government to reconsider the steep increase in the levy of foreign workers for the construction sector, as the hike will have a negative impact on the country's affordable housing agenda.

“The revised rate, which results in a 100% increase for construction workers, will definitely have adverse effects on the real estate industry, which at the moment is already burdened with continuous rising costs of development," REHDA president Datuk Seri FD Iskandar said in a statement.

In the same statement, the association said it has been totally caught by surprise over the sudden levy hike announcement by the government.

“We are deeply concerned [as] such [a] steep increase would not only negatively impact business operations, but ultimately, the cost increase would be passed down to consumers, thereby hampering the affordable housing agenda,” he added.

While developers have been strongly encouraged to provide affordable housing for the rakyat, he said it would be difficult for them to continue to do so, if the cost of doing business is not coming down.

“Whilst REHDA understands the government’s rationale in imposing the new levy as part of the budget recalibration measures to increase government’s revenue, we also hope the government would understand the industry’s predicament in this very challenging time,” he said.

He believes the government will be able to acquire better revenue with better enforcement, instead of increasing levy.

Therefore, REHDA, in appealing to the government to review the new levy position, is seeking for an urgent discussion to find an amicable solution for the benefit of all parties.