30% allocation for Housing Developers in Sabah to build low-cost housing is for the good of the people, Hajiji Noor

The proposed requirement for housing developers in Sabah to allocate 30% of their new housing projects for low-cost housing is for the good of the majority of the people, Local Government and Housing Minister, Datuk Hj Hajiji Hj Noor stated on 29th November 2011.

“As a responsible and caring government, we have the duty to look after the interest of the majority,” he said in a statement, in reply to Sabah Housing and Real Estate Developers Association (Shareda) president Datuk Susan Wong.

Yesterday on 28 November 2011, Susan said Shareda strongly objected to the proposal, saying that it will add to development cost and in the process increase prices of medium cost and above houses.

Announcing the proposal in the State Assembly recently, the Minister explained that the move was to enable the lower income group to own houses in the urban areas.

“This is the voice of the people, what the people want to see, as reflected in the suggestion made by a State Assemblyman. I was merely responding to the wishes of the people,” he added in his statement.

On the contention by Susan that the move will increase development cost, Hajiji said may be it is about time that housing developers play a greater part in fulfilling their Corporate Social Responsibility (CSR) rather than just profit-making.

“Give some back to society. Where there is a will, there is a way. The Wah Mie Group has shown that it can be done when they incorporated low-cost housing into their Sepanggar housing development and the government appreciates it,” he pointed out, describing Wah Mie as a good corporate citizen.

Susan had also said that the government-owned Sabah Housing and Town Development Authority (LPPB) should focus on building low-cost houses. To this, the Minister assured that the focus of LPPB is still on low-cost housing which is heavily subsidised by the government.

“Due to influx of rural folks into the major towns, low-cost housing built by the government is never enough. We need the co-operation of the private sector,” he stressed.

Responding to Federal Deputy Housing Minister Datuk Lajim Ukin’s remarks that the Sabah government should not rush into implementing the proposal, Hajiji said he found it puzzling as the policy was nothing new and had already been successfully implemented at the national level.

“As the deputy minister in charge of housing, I think he knows the background of this policy,” Hajiji concluded.

100% financing for new homes for young Malaysians

This is really good news for young Malaysians, looking for new houses.

In an effort to boost home ownership among young Malaysians, the government of Malaysia yesterday, 8 March 2011, announced a bountiful good news for them.

They can now buy themselves a new home without having to pay anything in down payment, i repeat, zero downpayment!!!

Those earning less than 3,000 ringgit (US$985) a month can obtain up to 100% financing to buy their first home under a new scheme launched by the ever popular Malaysian government.

The My First Home Scheme, launched by Prime Minister Datuk Seri Najib Tun Razak, will enable them to buy houses costing between 100,000 ringgit and 220,000 ringgit with a repayment period of up to 30 years.
















The scheme sees the participation of 25 conventional and Islamic financial institutions including major banks like AmBank, CIMB, Hong Leong, Maybank, Public Bank, RHB and Standard Chartered.

To qualify for the scheme, which is for both houses under construction and completed properties, house buyers must be those working in the private sector and are confirmed employees with a minimum of six months in the job.

The self-employed do not qualify for the scheme while joint applications are allowed, provided that both are in the private sector and are family members, such as siblings or spouses.

The monthly financing repayment sum must also be not more than one-third of the applicants' monthly gross income.

However, this sum can go up to 50% of their income if additional credit is permitted under the banks' underwriting policy.

The Government through Cagamas Berhad -- a national mortgage corporation -- will bear the costs of the initial 10% deposit for the house while normal interest or profit rates for Islamic banks apply under the scheme.

The scheme does not cover refinancing of a home.

Prime Minister Najib said the scheme would enable young adults in the country to own their first home within a short time.

"This scheme is a government initiative to help the young citizens as well as to inculcate confidence and desire in them to own houses.

"It is also part of the Government's objective to provide affordable housing to all Malaysians in rural and urban areas," he said.

The Prime Minister had announced the scheme during the tabling of the Budget in October, 2010.

Later, Najib witnessed the agreement signing between the Finance Ministry and the participating institutions, which was also attended by central bank governor Dr Zeti Akhtar Aziz and Treasury secretary-general Dr Wan Abdul Aziz Wan Abdullah.

Also present were Second Finance Minister Ahmad Husni Mohamad Hanadzlah, Deputy Finance Minister Donald Lim Siang Chai and Cagamas Holdings Berhad chairman Ooi Sang Kuang.