GEORGE TOWN – The newly formed National Housing Corporation (NHC) has been given a RM3 million allocation to conduct a two-year extensive study on consolidating public and affordable housing agencies in the country, following approval by former prime minister Tan Sri Muhyiddin Yassin’s cabinet.
Speaking to reporters after presenting Ideal Residency affordable housing offer letters to potential owners here today, Housing and Local Government Minister Datuk Seri Reezal Merican Naina Merican highlighted discrepancies of Malaysia’s housing systems resulting in inconsistency and mismatch between demand and supply.
The bill to establish NHC was approved by the cabinet on August 11, when the portfolio was still under then housing and local government minister Datuk Zuraida Kamaruddin.
As such, the consolidation plan under NHC will resume under Reezal Merican.
The in-depth research will centre around laws, regulatory framework and implementation.
“Currently, there are 15 implementing agencies for both public and affordable housing. This makes national housing plans seem fragmented, scattered and ill-managed.
“Having this consolidation will put all these agencies under one umbrella so we can have a focused strategy in terms of geological spread.
“For example, I see the need to have more People’s Housing Projects (PPRs) in the Seberang Prai Utara and Seberang Prai Tengah districts because there are many B40 groups making up 45% of the population in both districts.
“I have approved two PPRs for Penang, even though I know state housing, local government, and town and country planning exco Jagdeep Singh Deo requested for five,” he said.
However, he promised to look into it after housing programmes in other states are also provided for.
As for Budget 2022, Reezal Merican said he has discussed with Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz to revive the MyHome scheme introduced by sixth prime minister Datuk Seri Najib Razak in 2016.
He stressed the need to empower younger house buyers and ease their entry into property ownership because banks often consider those in the group as high-risk potential buyers.
“Therefore, home loan applications for the group are often rejected. I believe the younger generation can increase their net worth through property ownership.
“Wealth is not just about equity or income, but also property ownership. We have to encourage the young to own properties.
“At (age) 25 to 35 they may be in debt, but the property value will increase along with their wages.
“This means debt can create wealth. The only problem here is the initial deposit,” he said.
He said the MyHome scheme under Najib was a success because 87% of those who applied were between the ages of 25 and 35.
Thus, he hopes to work under a double-pronged approach with both developers and the people.
Meanwhile, Jagdeep said this issue is also pursued by his office and he has spoken to Bank Negara Malaysia to aid people who have been rejected from getting home loans even after offer letters were handed to them to purchase affordable homes.
Also present during the event was Penang Chief Minister Chow Kon Yeow, who stated approvals for home loans from banks decreased by 1.1% from 73.1% for 2019 compared with 72% in December last year, according to HousingWatch.my.
In Penang, approvals decreased by 1.2% from 74.3% for 2019 compared with 73.1% in December last year.
As for the ability to ease new homebuyers into the property market, Reezal Merican said the ideas and plans have been presented to the Finance Ministry, and the decision is entirely up to their approval. – The Vibes, October 16, 2021.
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