The 1Malaysia People’s Housing Scheme (PR1MA) has entered into partnership with the Langkawi Development Authority (Lada) to build 1,000 affordable homes.

The houses will be built about 2km from Kuah town on a 58.27ha site.

Prime Minister Datuk Seri Najib Tun Razak, who witnessed the signing of the memorandum of understanding (MoU) for the project between PR1MA and Lada yesterday, said the prices for the homes would be 20% cheaper than market rate.

PR1MA chief executive officer Datuk Abdul Mutalib Alias and Lada chief executive officer Tan Sri Khalid Ramli signed the MoU.

The 1,000 homes to be built on 22.25ha of the site will consist of single and double-storey terrace houses as well as mid-rise apartments. The project is expected to start by the end of 2015.

A statement released by PR1MA said the housing project would have public facilities while the remaining 36ha would be kept for future development under Phase 2.

As of last month, PR1MA had approved 70 projects in various states.

At another event, Najib said the country’s broadband penetration rate was currently at 67.1%, just 7.9% behind the Government’s target of 75% by 2015.

He noted that the Government’s effort to broaden its coverage over the years had produced positive results.

“The rate was only 31.7% in 2009. Development and telecommunications are related, just like an engine and its machinery,” he said at the launch of the Langkawi Communications Empowerment Initiative and the 1Malaysia Broadband Carnival 2014.

He added that by next year, residents and tourists in Langkawi would enjoy better broadband coverage when 90% of the island was connected to the 3G network.