BY: SHUHAIMI SHAFIEI
Urban Wellbeing, Housing and Local Government Minister Tan Sri Noh Omar recently announced his ministry’s suggestion that developers be allowed to apply for moneylender licences at the 19th National Housing and Property Summit 2016 on September 8, 2016. He claimed this move was to enable the public to own homes.
He also was quoted as saying that it would “create a second source of profit” for developers.
Does Noh Omar realise that licensed moneylenders usually incur an interest rate of between 12 to 18% yearly – compared to the normal housing loan rate of 4 to 4.4% a year?
Noh Omar as minister, should serve the rakyat and not help increase the profits of developers who usually enjoy a pre-tax profit of between 15 and 20% for every housing project.
This suggestion also goes against the 7 to 10% discount given to bumiputera applicants who purchase houses. What is the meaning of the housing discount if the buyer ends up as a slave to settle his debts with an annual interest as high as 18%?
We are lucky in Selangor that this discount will remain and this policy is combined with really affordable housing prices.
While Selangor continues implementing its affordable housing policy for the rakyat, Nor Omaras BN Selangor Chairman seems determined to allow the rakyat to pay interests of up to 18% just to own a house.
This suggestion is nothing less than a scheme to enrich developers overnight and at the same time will turn buyers into victims and bankrupt the rakyat.
There is only one conclusion that we can draw from it; poor families with dreams of owning a home will be faced with the risk of financial ruin if it is implemented.
Such a statement from an UMNO minister is unsurprising as he was appointed by his boss who is infamous for the 1Malaysia Development Berhad (1MDB) scandal.
This suggestion, adding to his vindictive political manoeuvrings in the withdrawal of the Worldwide Holding Berhad contract, has destroyed whatever is left of Nor Omar’s reputation (if any) and his right to question Selangor’s housing policies.
* SHUHAIMI SHAFIEI is the Political Secretary to YAB Dato’ Menteri Besar Selangor / KEADILAN Selangor Information Chief
Nor Omar’s suggestion clearly exposes BN’s financial management weakness
