Permas is totally shocked and disappointed with the recent statement by the Federal Territories and Urban Wellbeing Minister Raja Nong Chik Raja Zainal Abidin who announced that the Kuala Lumpur City Hall (DBKL) is offering low cost housing loans to low income earners from a funding of up to RM1.5 billion obtained from the Employees Provident Fund (EPF).
It is very obvious that the federal government seems to have run out of ideas to tackle the issue of housing for the poor. The people’s savings stored in the EPF has become the scapegoat of the Minister Raja Nong Chik and the federal government in their bid to try and fulfill promises of housing for the poor, or perhaps is it a sad but risky ploy to buy favour and votes from the rakyat?
Point 1:
We recall clearly that this same minister was reported in the Malay Mail dated July 19, 2010 to have said that Prime Minister Najib Razak had instructed Bank Negara to take the initiative to ensure the banks assist the interested buyers and that a meeting was held between the ministry, DBKL and bank institutions resulting in nine major banks expressing they were willing to partake in the effort. The minister had further announced a special fund would be set up, backed by these selected banks and that the Credit Guarantee Corporation was willing to act as a guarantor for their housing loans.
Raja Nong Chik was also reported to have said that, “There should be no cause of concern for the banks to provide financial assistance to the PPR flat buyers as this is a secured asset.” And that the ministry would also continue to monitor the development between loan-applicants with the banks on this matter.
Permas questions the sudden turnabout of decision of detracting the responsibility of bank loans from these nine banks to the EPF. Is it because these banks who had agreed to partake in the special scheme pulled out and the government had to resort to desperate measures to fulfill what was promised one and half years ago?
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Nong Chik, answer for EPF housing loan fiasco
Tan Jo Hann
Feb 12, 2012 – Malaysiakini Letters
low cost housing by it very nature should come under the ambit of the government’s federal budget. by statute EPF can only invest in blue chip companies.
we have bewn sleeping for 60 years. just build low cost houses on an annual basis under the federal budget allocation and then rent out these houses to the low income group. then after 10 years offer to convert the rent paid over the 10 years into down payment for the house and sell it to the tanents. then you see if they will refuse. Better still if the BN can do this I guarantee that they will rule this country for ever. it is still not to late. begin tomorrow.