Kuala Lumpur: The government, through the National Water Services Commission (SPAN), has reduced the contribution rate for public sewer connections imposed on developers, effective March 1. Previously, the contribution rate was set in bulk at one per cent of the selling prices of homes.

According to BERNAMA News Agency, SPAN announced in a statement that this move is anticipated to lower house sales prices, thereby facilitating home ownership for low- and middle-income groups. For homes priced at RM80,000 or below, developers will now contribute RM1,000 per project. Meanwhile, for homes priced between RM80,000 and RM150,000, the contribution rate is adjusted to 0.25 per cent of the selling price.

In terms of government projects, SPAN revealed that the payment has been set at a fixed rate of RM900 per equivalent population, a change from the previous rate of one per cent of the contract cost per unit. This adjustment is intended to stabilize the payment rate by removing the influence of fluctuating contract costs.

SPAN has also introduced a special rate for specific building categories. For houses of worship, the contribution rate is pegged at RM100 for all buildings within a project. Welfare and community buildings will also benefit from a contribution rate of RM100 per building.

Despite a projected 15 per cent decline in revenue collection, SPAN believes these amendments will promote the development of more affordable housing. Additional details on the new rates are available on SPAN's official portal at www.span.gov.my.