GEORGE TOWN, March 17 ― Penang capped its prices for affordable housing at RM400,000 according to the rates announced by the prime minister for Budget 2012, Chief Minister Lim Guan Eng explained today after a federal minister accused him of lying about the matter.

Defending himself against Urban Wellbeing, Housing and Local Government Minister Datuk Abdul Rahman Dahlan’s accusations yesterday, Lim produced news reports by Bernama to prove his point.

“I don't want to trade insults with him, I just want to respond with facts and documents by showing Bernama reports on the announcement of Budget 2012 by Najib on affordable housing,” he told a press conference at the Penang Development Corporation (PDC).

Lim read out news reports in 2011 and 2013 where Prime Minister Datuk Seri Najib Razak announced the allocation of funds for the 1Malaysia People's Housing (PR1MA) to build affordable homes costing between RM100,000 and RM400,000 per unit.

“It is very clear that the affordable housing price range is determined by federal government in Budget 2012 so for Abdul Rahman to say I'm lying, is he also saying Najib lied?” he asked.

He asked Abdul Rahman if it was wrong for the state government to follow the affordable housing prices set by the federal government for PR1MA units.

“The point is that we are just following the pricing mechanism set by Putrajaya. If we don't follow the pricing, we are considered as refusing to be in line with the federal government,” he said.

Lim also said that housing prices come under the purview of the federal government and not the state.

Yesterday, Abdul Rahman called Lim a liar in Parliament for claiming the RM400,000 affordable housing price cap was set by the federal government.

When asked if the state is willing to set a lower affordable housing price margin if it was allowed to do so, Lim replied in the affirmative but said the matter would have to be discussed with the state legal adviser first.

“Anyway, we didn't fix all affordable housing units prices at RM400,000, some are priced lower, some starting from RM120,000 per unit up to RM400,000,” he added.