Prime Minister Datuk Seri Najib Tun Razak today witnessed the signing of a memorandum of understanding for the construction of houses under the 1Malaysia People's Housing Programme (PR1MA) in Melaka.

The MoU involves collaboration between the Melaka Foundation and PR1MA Berhad to develop the project and build the houses for middle-income people.

At the signing, the foundation was represented by its chairman and Melaka Chief Minister Datuk Seri Mohd Ali Rustam and PR1MA Berhad was represented by its chairman, Datuk Seri Dr Jamaludin Jarjis.

Jamaludin told reporters later that the houses would be built on 299.5 hectares in the Bukit Katil parliamentary constituency, with about 258 hectares in the Ayer Keroh state constituency and about 40 hectares in the Bachang state constituency.

"The Melaka Foundation is in the process of acquiring the land," he said.

He said the houses would be sold at 20 per cent lower than the market price.

Jamaludin said the number of units to be built would be announced by the prime minister when he opens the Menara Persekutuan at the Melaka International Trade Centre (MITC) here at 3 pm today.

Najib, who is on a day-long visit to Melaka today, is also scheduled to meet Melaka Barisan Nasional (BN) leaders at the state BN headquarters and attend a lunch with the people and traders at the Jalan Tun Ali food court.