BY: LIZAWATI MADFA
SHAH ALAM, SEP 20: KEADILAN Youth protested the suggestion made by Urban Wellbeing, Housing and Local Government Minister Tan Sri Noh Omar on housing loans.
KEADILAN Youth Chief Nik Nazmi Nik Ahmad said the short-sighted proposal will give uncontrolled freedom to developers, as it will not be under Bank Negara’s purview.
“Youths will be affected as any house purchase with high interest rates not only burdens them financially. It, in fact, also reduces their purchasing power.
“This encourages those who are unable to take bank loans, to instead purchase houses beyond their financial capabilities, and increases the risks of defaulting on payments,” he said in a statement on September 20.
On September 8, Noh announced that developers can now apply for licenses to lend money to house buyers.
He said interest rates were capped at 12% for loans with collateral, and up to 18% for loans without collateral.
Nik Nazmi said Noh’s ‘crazy’ proposal can create a sub-prime crisis akin to the US debacle a decade ago, which caused the economic slowdown from 2007 until 2009.
The Federal Government should focus on cooperating with developers to reduce house prices and let Bank Negara control loans.
“Their responsibility is not to encourage home ownership, but to ensure that the rakyat can live comfortably by providing the best incentives to buoy the economy,” he said.
Housing loan issue: Noh’s proposal short-sighted, youth victimised
