Builders want guidelines on moneylender plan spelled out

PETALING JAYA: Property developers have welcomed the Government’s initiative to allow builders to apply for a moneylender licence so that they can provide loans to buyers.

But they want the guidelines to be spelled out before they make any concrete plans.

Real Estate and Housing Developers’ Association Malaysia (Rehda) president Datuk Seri Fateh Iskandar Mohamed Mansor (pic) said the Government was catering for the needs of first-time house buyers and developers.

He said most developers, if not all, do not have the funds to offer 100% financing.

“What we are asking for is a type of bridging, for 10% or so,” he said.

Sunsuria Bhd founder and executive chairman Datuk Ter Leong Yap said the move would better benefit those going for affordable housing.

Mah Sing Group Bhd’s group managing director Tan Sri Leong Hoy Kum said the feasibility of such a programme can be reviewed once more details were made available.

Eco World Development Group Bhd executive director Datuk Voon Tin Yow said this may be useful for developers with financial strength.

He said several industry players had done something similar but there were not many takers because interest rates had to be very high.

See Hoy Chan Holdings executive director Tan Sri Teo Chiang Hong said the move will help developers sell their properties, provided they have good cash flow.

“On the negative side, a developer would be undertaking financial risk as well as business risk,” he said.

SP Setia president and CEO Datuk Khor Chap Jen said it was open to the initiative and will assess.