COMMENT Assuming that 200 construction workers are employed to build a condominium block worth RM400,000 for each unit. There are eighty units in the 20-block building and within two years, the job has to be completed.

Assuming that we are currently paying RM1,000 for each foreign worker, but if we decided to employ local workers, we need to add another RM1,000 on average.

Instead of RM60,000 cost of wages per condominium, the cost is now an additional RM60,000. Although this is based on a layman’s cost estimates, it clearly shows that an additional RM1,000 on average to attract a local employee would not make a huge impact on the price of the condominium.

The real reasons why prices of property escalate

There are many other factors that cause the prices of houses and apartments to rise. First, it is the price of the land which contributes to the larger extent the prices of the property.

For example, a 22 feet x 75 feet double storey house in Seremban may cost only RM300,000, but for the same type of house albeit smaller, it would easily cost more than RM2 million in Petaling Jaya.

Construction costs and the cost of building materials are not the major contributor to the prices of property in the Klang Valley, not forgetting that these days, the properties are constructed on leasehold state land.

Forget about landed property, even a condominium of only 1,000 square feet is currently selling at a minimum of RM700,000 in hotspots around Petaling Jaya.

The second reason why prices of properties escalate is because of the impact of the Goods and Services Taxes (GST). At six percent, the price of the condominium would have gone up by RM24,000 without even taking into consideration the other inflationary pressures.

If the government is serious about solving the issue of foreign workers, without having to bring in another 1.5 million Bangladeshis, it should waive the GST and allow the money to be funnelled as higher wages for the blue-colour labourers.

The third and major reason why prices of property have gone up is because of the level of corruption. A couple of decades ago, I was told that for every tall building to be approved by a particular city mayor, the developer allegedly had to pay RM500,000.

Besides the approval process, there were other officers who allegedly had to be bribed as well, which makes the construction industry reputedly one of the most corrupt industry in the country.

I am sure this would have gone up several-fold by now, because corruption cases are no longer in the millions but billions of ringgit.

Khairy should stop parroting Zahid

As an Oxford graduate, Khairy Jamaluddin should have developed more critical thinking, instead of trying to parrot Deputy Prime Minister Ahmad Zahid Hamidi.

The tragedy we have today is when ministers themselves can only be ‘Yes’ men to whomever they think would give them the promotions. It is one’s self-interest which they are keeping in mind, no longer the interest of the nation.

I suggest that Khairy work with the Housebuyers’ Association to work out a scheme to help youths to be able to afford a home. The current scheme is not attractive enough, as prices of properties are simply unaffordable to most young people.

I am sure that there are other ways to make homes more affordable. For example, if the land belongs to the state, could the price of the land not be controlled so that the property of these affordable homes not appreciate too much?

There are other ways to build homes which could be more cost-effective. In Japan, to complete the construction of a bungalow home, it no longer takes two years and having to employ 30 or more workers. The entire building structure can be completed by less than 10 skilled, smart-looking employees within less than a week, using some prefabricated construction materials.

I was told by the people I interviewed previously at Panasonic that an entire township can be built using the same technology. It is about time that Malaysians should move up the value chain, instead of depending on cheap labour which is no longer our strength.

That, my dear Khairy, is the reality. No more dirty jobs , but high-skilled training to build prefabricated homes in Petaling Jaya. Given the chance to visit Japan, and write about these townships, I would be happy to oblige.

Go and check it out (including the quality of workmanship) yourself before trying to tell us what the reality is!

STEPHEN NG is an ordinary citizen with an avid interest in following political developments in the country since 2008.