According to Datuk Seri Ong Ka Ting, by allowing the Federal Government to buy the land will help subsidise cost to build more affordable houses and if land were developed by property developers they would prefer to build high-end houses or office spaces, which are more profitable. The state governments will be the immediate beneficiaries under this proposal as the land will be bought at the market price.

Datuk Seri Ong added that nowadays, there was a mismatch in the supply and demand for low-cost housing because the projects were located far from the cities.

He said a year ago, the Ministry had already discussed with the states the viability of this project at the National Housing Council meeting. Now the Ministry has prepared a paper on this proposal and still waiting for other agencies to commend on this matter before submit to Cabinet level for further discussion.