Recently the Urban Wellbeing, Housing and Local Government introduced an initiative that enables the property developers to bridge loan to Malaysians unable to furnished housing loan from commercial banks, suggestive at the rate of 12 and 18 per cent (with collateral and without collateral respectively).
This proposal was urged by the industry following the abolished Developer Interest Bearing Scheme (DIBS) in 2014, which led to speculation in the property sector. The move was necessary after a report by the National Property Information Centre (Napic) showed the number of unsold units in both the residential and commercial properties has scaled by 16 percent in the first quarter of this year.
Though the intentions are for the ‘greater good’ of providing shelter to the first time house seekers, the proposal receives flaks from various quarters of the populations. Furthermore, it was never discussed by the Malaysian Cabinet, thus, one wonders the magnanimity of the minister; Tan Sri Noh Omar in disclosing the intentions prior mandate or approval from the government.
Adding on, Noh claims that all developers to apply to the ministry for a money lending license in accordance to the Moneylenders Act 1951, is simply outrageous! The ministry could only facilitate the initiative on the financial aspect which falls under the purview of the ministry of finance!?
The public is curious to the claims that, several developers have licences to give out loans. The question is, how many are licensed and where does it operates? Similarly, Noh Omar has frivolously suggested a mandatory fundraising enforced for schools in the state of Selangor, which is the administrative of the education ministry.
In Budget 2016, announced last October, the Education Ministry received RM41.3 billion; a range of 15 to 20 percent of the budget for school maintenance. Or is it to believe, the expenditures of the school maintenance is managed by the ministry spearheaded by Noh Omar too?
Sadly we observed to often than not, many of the ministers or leaders are incoherent in making their points across the board, multitask or stepping unto other ministry, beyond their shallow waters.
Tan Sri Noh Omar is expected to table the initiative questioned in the scheduled weekly Cabinet meeting, today. He told reporters, “However, if I explain to the Cabinet tomorrow and they decide that it is not implementable, as it may bring about a (negative) impact to the economy, I will accept the decision…And if the Cabinet also decides that the licence given to these developers should not be continued, then the licence will be revoked…” He should hold his tongue and show restrain…one might add.