Govt disallows interest capitalisation scheme for housing licence approval

KUALA LUMPUR: The government will not allow the use of Interest Capitalisation Scheme or any other permutation to approve housing development licence, place advertisements and obtain sales permit by any housing developer.

The ruling came into force from Friday (Nov 15, 2013).

The Urban Wellbeing, Housing and Local Government Ministry said the measure was taken to enhance the people's ability to buy a house and to ensure stable house prices and also to curb speculation.

 "Speculative activities have an impact on house prices as well. This situation may adversely affect the property market in the long run," the ministry said in a statement today.

The National Housing Department Director-General, Datuk Dr Mohd Padzil Hashim, also called on the people to provide information and report to the department if they came across any dubious schemes related to Interest Capitalisation Scheme or any other permutation.

Potential house buyers can check out the developers' background via the department's website - Bernama

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