public and private funding for affordable housing development and investment. in other parts of the world, public - private partnerships through joint ventures have replaced traditional methods of financing for the supply of public housing. public funding could also be deployed more efficiently to crowd in private capital for affordable housing developments – for example, by providing cost - efficient funding to institutions that finance affordable housing projects. regardless of the measure, it will be crucial to build in mechanisms that promote programme efficiency and effectiveness. these include business models that are based on sound commercial principles, good governance and appropriate risk management strategies. schemes introduced could specify minimum technical standards, execution guarantees and other conditionalities for financing or payment. ‘ social impact bonds ’ – which have gained interest in some countries such as the united kingdom, united states, and australia – are a useful example. these investment structures operate on a “ pay - for - success ” model, where the government repays the costs of a programme plus a return, only if pre - defined social outcomes are achieved. third, there is a need to foster more diverse collaborative partnerships to deliver affordable housing. this includes a vibrant community of social housing enterprises, private foundations and non - profit organisations that support or complement the government ’ s affordable housing agenda. notably, such organisations have also been instrumental in encouraging the development of a vibrant rental market as a viable alternative to home ownership. for example, in australia and hong kong, social enterprises have had an important role in building affordable housing units or revitalising existing properties for sale or rental, typically targeted at lower - income groups. we need to consider how similar models could be developed here and the role of public policy to enable this. in the context of rental properties, a robust legal and institutional framework to safeguard the rights of tenants and landlords, mechanism to protect tenancy deposits, and arrangements for dispute resolution have been key success factors for countries that have a thriving rental market. at the same time, the introduction of “ rent - to - own ” schemes could also complement this. the government has recently launched such a programme. we would welcome the private sector, particularly developers, to also explore such a strategy. sound, innovative and coordinated public policy is central to addressing the affordable housing challenge. we have advocated that this should reside with a central authority that leads, oversees and coordinates affordable housing initiatives for the nation. this would promote greater strategic and operational cohesion at the national level. regulatory processes that increase the cost of supplying affordable homes should be reviewed and streamlined. the

. more to the point, financing measures have had an important role in tempering house price increases and encouraging an increase in the supply of affordable homes. this alone, however, is insufficient. public policy can play a bigger role in advancing the affordable housing agenda. given the structural factors that are shaping the housing market, solutions have to go beyond advocating for the construction of more houses. it is also imperative that we improve the existing ecosystem for affordable housing delivery to respond to both current and new challenges ahead. let me briefly touch on several key components of such an ecosystem. first is having good data. an integrated database on housing supply and demand is critical – this should provide insights on the needs and preferences of households, their linkages with demographic shifts, as well as housing gaps across different parts of the country. as much as possible, the repository of information should be made available to all relevant stakeholders, thereby enabling better - informed decisions across the board. for the federal and state government authorities in particular, the database will be useful in supporting housing interventions that are more targeted, more efficient, and better coordinated with other public policies to build stronger communities. with an aggregated view of market conditions, large - scale housing projects can also be better planned and executed. this will be key in capitalising on the lower costs made possible through smarter procurement processes and industrial construction approaches, as proven in countries such as singapore, hong kong and australia. it will also enable affordable housing quotas for development projects to be implemented in a way that is more responsive to market conditions, and therefore more practical to enforce. importantly, we must seek to connect affordable housing initiatives with broader social development programmes to create livable and vibrant communities. homes should be reasonably close to centres of employment, schools and healthcare facilities. good connectivity between these areas and transportation hubs would encourage the development of affordable housing, strengthen supply conditions, and create opportunities for the more efficient allocation of scarce development resources. a major part of this is an integrated public transportation system that spans the greater kl and klang valley. the government ’ s ongoing efforts to improve public transportation such as the lrt and mrt projects are major steps in the right direction. 2 / 4 bis central bankers'speeches second, innovative financing models to fund affordable housing projects should be further developed. current intervention measures largely focus on subsidising home - buyers or the direct provision of housing. over the longer term, these need to be complemented by new, more sustainable alternatives that combine