BNM told to review home financing models to help B40, M40 groups, says PM

PETALING JAYA: Bank Negara Malaysia (BNM) has been told to review home financing models to facilitate housing ownership for middle 40 (M40) and bottom 40 (B40) income groups, said Datuk Seri Ismail Sabri Yaakob.

The Prime Minister said this was to ensure that financial institutions would ease financing access for B40 and M40 groups for the groups to be able to purchase People's Housing Project (PPR) and affordable homes.

"Focus should be given for direct purchase and rent to own," he said in a statement after chairing the National Affordable Housing Council (MPMMN) via teleconferencing on Thursday (Feb 10).

The meeting was also attended by Mentri Besar, chief ministers, Cabinet ministers, Chief Secretary to the Government and the Governor of Bank Negara.

The MPMMN was a platform to discuss and coordinate the planning, coordinate and monitor the construction of affordable housing across the country in line with the vision of one family one house.

During the meeting, the Housing and Local Government Minister Local Government Minister and the Real Estate and Housing Developers' Association Malaysia (Rehda) had been ordered to address the issue of rising cost of building materials and dominance of cartels in the construction industry.

"If it stems from Approved Permits (AP), the meeting proposed that it should be open to all," said the prime minister.

Ismail Sabri said that the meeting also listened to the presentation made by BNM and Khazanah Research Institute on various current issues and data arising from the aspect of public housing as well as access to financing of affordable homes.

"The information will become the basis for the government to improve on its strategies for the construction of affordable homes and strengthening of relevant policies," he said.

The meeting also agreed to set a new direction for PPR that takes into account the current needs including to add a new component towards achieving the Liveable Malaysia agenda, said Ismail Sabri.

"The construction of new PPR flats will take into account elements of connectivity, internet access including Fiber to the home (FTTH), public transport network links as well as designs that are more economic and comfortable," he said.

Aside from that, the National Housing Council also discussed the strategies and preparation for the implementation of 500,000 affordable housing across the country throughout the 12th Malaysia Plan, involving the Federal Government, state government and private developers.

"The government is committed to ensure the sufficient supply, high quality and affordable housing that meets the needs of the growing population," he said.

Ismail Sabri noted that the Housing and Local Government Ministry had introduced the Home Ownership Programme (Hope) to see a more comprehensive ecosystem in the construction of homes, financial access as well as programmes that can help members of the Keluarga Malaysia (Malaysian Family) to own a house.

To achieve this, all parties need to play their role so that the One House, One Family goal can be realised, he said.

"The Federal Government will give subsidies, the state government will allocate the land while the banks can help ease access to better financing to ensure that the cost of PPR and affordable houses can be sold at the right price," explained Ismail Sabri.

At the same time, the government expressed its commitment to provide affordable housing for the younger generation in order for the group to be able to own their own homes.

Similarly the meeting also gave focus to build more affordable houses in smaller towns and cities to increase the chances for them to own a house.