Moderating effect of government support policy on the relationship between Malaysian LCH leakages, high construction cost and LCH demand-supply: a proposed framework

Abstract

Several studies have shown that LCH leakages and high construction cost are among the major variables that determine the LCH demand-supply gap. The role of government influence to bridge LCH demand-supply gap cannot be over-emphasized as evident in countries that have recorded success in LCH development. This conceptual article investigates the moderating effect of the role of government support policy, as the moderating effect on the relationship between Malaysian low-cost housing leakages (MLCHL), high development and construction cost (HDCC) and LCH demand-supply (LCHDS). This would be achieved via Partial Least Square-SEM method of key stakeholders across the Malaysian housing sector. The proposed framework suggests that GSP possibly will moderate the relationship between MLCHL, HDCC and LCHDS. This is significant to policymakers and housing regulatory agencies, and the need for policy reform in the housing sector to enhance the better flow of LCH units from the housing developers. The generated discussion would mitigate the paucity of literature, especially in LCH leakages. The article concludes that government should lead and implement more pro-poor homeownership policies and reforms that would plug LCH leakages and mitigate high development and construction cost so that low-income earners house-buyers can gain access to homes.