THE EFFECTIVENESS OF GOVERNMENT INCENTIVES TO FACILITATE AN INNOVATIVE HOUSING DELIVERY SYSTEM: THE PERSPECTIVE OF HOUSING DEVELOPERS

The government’s role in facilitating innovation has been widely discussed, but there is still a lack of evidence on the effectiveness of the incentives in place. The aim of the study is to identify whether incentives initiated by the Malaysian government to encourage the implementation of a new housing delivery system known as the Build Then Sell (BTS), are able to influence housing developers. Three incentives have been introduced by the government: a fast track planning approval process, a waiver of deposit for a developer’s license and an exemption for low-cost houses. Semi-structured interviews were conducted with developers and planning officers who have experience in applying or processing the incentives. The findings revealed that, the incentives are ineffective to influence the implementation of BTS by Malaysian developers. This implies that there is a need to reassess existing incentives in order to increase the implementation of BTS in Malaysia.