Day: July 19, 2016

S’gor MB wants Bank Negara to review strict housing loan policy

Source :

Selangor Menteri Besar Azmin Ali has expressed hope that Bank Negara Malaysia re-evaluates its stringent housing loan policies.

This is in light of the many complaints the state government received from Selangorku housing recipients over their failure to obtain bank loans, said the PKR deputy president.

“We are aware of the statistics on household debt, which is now too critical and requires Bank Negara to implement a new policy to tighten loan (disbursement).

“But as what has been suggested by the state government, we hope Bank Negara will review this as retail consumption is not the same as housing loans,” he told a press conference after officiating at a groundbreaking event for a new Selangorku housing development project in Puchong.

Priority for loan application approvals must be given to first-time buyers so that they can obtain affordable homes, he said.

“The property industry will be affected if they cannot obtain loans from banks,” he added.

The country’s household debt currently stands at 89.9 percent of the gross domestic product, which is among the highest in Asia.

Bank Negara, however, has expressed confidence that household debt will be maintained at a prudent level due to measures introduced in the last few years, which include its strict housing loan policies.

‘Rent-to-own concept not new’

Meanwhile, Azmin criticised newly-appointed Urban Wellbeing, Housing and Local Government Minister Noh Omar over his support for the federal government’s rent-to-own concept.

He said the idea was not new as the Selangor state government had implemented a similar scheme two years ago.

“We have such a scheme and we have already implemented it. Not like the other side (federal government), which has only drafted the cabinet paper.
“I invite the new minister to come to Selangor to learn how we build actual affordable homes,” said Azmin in his speech earlier.

Azmin told the press conference later that the state government had allocated RM10 million for the scheme in 2014 and an additional RM10 million in August last year.

“We started the scheme for the Rimbajaya apartment last year. (And) this scheme will be continued in the future,” he said.