The Barisan Nasional (BN) manifesto announcement by Prime Minister Datuk Seri Najib Razak on providing 1 million affordable homes over the next five years, as well as other related measures, were well-received by economists.

The economists believed that the multi-pronged housing strategy, if executed correctly, would provide a much needed boost to the livelihood of the lower and the middle income group.

"The strategy would be helpful as houses are getting more and more expensive over the past few years," said economist Azrul Azwar Ahmad Tajudin.

Under the BN's pledge, Najib also said that it also has plans to revive abandoned housing projects.

"Abandoned housing projects are very damaging; buyers stand to lose a lot of money and they often have to wait a long time. This issue cannot be left unattended, so it is good that they have decided to resolve it," said Universiti Sains Malaysia housing, building and planning dean, Prof Dr Mahyuddin Ramli in a local English daily today.

However, these economists believe that there are areas that needs to be looked into, so that the housing strategy can be effectively executed.

"The main concern is the location. It is good to have a house at a cheap price, but it defeats the purpose of the project if the houses are located too far away from economic activities areas.

"The next concern would be the facilities. It is good if the housing areas are supported with facilities such as easy connectivity to highways, accessible to MRT stations, bus stops, schools, and more," added Azrul Azwar.

Under the BN manifesto announcement, Najib said that there are plans to build 1 million affordable homes over the next five years.

From the 1 million new homes, half of them will be comprised of Perumahan Rakyat 1Malaysia (PR1MA) Bhd homes.

PR1MA was set up to plan, develop, construct and maintain affordable housing for middle-income households in key urban areas (combined household income of RM2,500 - RM7,500). This involves building homes ranging from RM100,000 to RM400,000.

Azrul Azwar also suggested that the government may want to consider streamlining various agencies within the housing industry, as this may lead to inefficiencies.

"There may be chance of duplication of work by the officials from various agencies. These resources can definitely be better utilised," he said.

He further explained that the biggest challenges in such housing development project is land issue.

"Land issue is usually a complicated matter, and most of the time, the issue is always a state matter and not so much of federal government's matter.

"So, with the streamlining, the resources can be better utilised to solve this issue," he concluded.