Urban Wellbeing, Housing and Local Government Minister Noh Omar clarified that the idea for developers to be issued money-lending licences to allow them to extend loans to house purchasers was not new, and selected developers were already licensed to do so, reports national news agency Bernama.
In fact, he said housing developers were encouraged to apply for money-lending licences as there was a provision for that under the Moneylenders Act 1951.
Noh said that he would explain to the cabinet the proposal for housing developers to offer home loans tomorrow, and would accept whatever decision made regarding the matter.
He explained that the proposal was made as a suggestion to help developers who had been lamenting over an increase in the percentage of completed but unsold homes.
"I was planning to make an official announcement of the proposal as some developers might not be aware of it.
"However, if I explain to the cabinet tomorrow and they decide that it is not implementable as it may bring about (negative) impact to the economy, I will accept the decision.
"And if the cabinet also decides that the licences given to those developers should not be continued, then the licences will be revoked," he told reporters in Tanjong Karang today.
Last Thursday, Noh proposed the initiative that would enable property developers to give out loans to buyers at an interest rate of 12 percent with collateral and 18 percent without collateral, which received mixed reactions from various quarters.
Deputy Prime Minister Ahmad Zahid Hamidi was also reported as saying that the proposal was never discussed by the Cabinet.
As such, he called on Noh to brief the cabinet members on the controversial suggestion -Mkini
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