Anwar voices concern over P2P home financing plan

KUALA LUMPUR: Datuk Seri Anwar Ibrahim voiced concern over the newly-launched peer-to-peer financing framework for first time house buyers.

"While in principle I support the policy, I ask that the Finance Minister give due attention on what the impact will be," he said when debating Budget 2019 in Parliament Tuesday (Nov 13).

Anwar, who is a former finance minister, said consideration must be given if the peer-to-peer financing framework will result in higher debt for homeowners.

"It must be seen if the holding shares will increase the debt burden and household debt, which is currently at a high level," he said.

Anwar also said the government must also find out if this approach in boosting home ownership will result in greater financial problems.

"Is there a possibility that this approach will tie us down with financial problems as what happened in the US sub-prime crisis or lead to property speculation?" he asked.

Between 2007 and 2010, the US sub-prime mortgage crisis in the United States led to a recession after the housing bubble there collapsed.

Anwar said that there was no short cut to boost home ownership.

"We cannot assume that a person who can't afford a home can own one," he added.

Finance Minister Lim Guan Eng announced the approach when unveiling in his Budget 2019 speech on Nov 2.