The state government have been urged to provide land with lower premium in a move to provide affordable homes for the youths, Prime Minister Datuk Seri Najib Razak said.

He said a good working relationship between the state government and private companies can encourage developers to provide houses below the market price.

He cited a housing project he had launched recently which the developer had built homes on Pahang state government’s land and the houses were sold at RM175,000. He said the market price for the houses are RM300,000 and above.

“This is an example of state government providing land with lower premium. Houses below the market price can be built and offered to youths,” he told Dewan Rakyat today.

Najib was replying to a supplementary question from Normala Abdul Samad (BN-Pasir Gudang) who wanted to know what were the efforts taken by the Finance Ministry to provide affordable housing for youths.

Najib said under Budget 2016, an allocation of RM1.6 billion has been channelled to housing projects throughout the country.