‘Keep renting? 1MDB funds could provide housing’

Finance Minister II Johari Abdul Ghani may be trying to convince people to rent properties for longer periods but the government shouldn’t abdicate its responsibility over rising property cost, said PKR Youth vice-chief Tan Kar Hing.

Tan, who is also Simpang Pulai state assemblyperson, pointed out that 1MDB, which had taken up to RM50 billion in debt, could have provided affordable housing.

Instead, he said the money was diverted and spent on luxury properties, including a 23.25 million pound sterling (RM129 million) purchase in London.

“It is funny that people are being asked to rent until they die while the prime minister’s stepson can buy luxury properties abroad.

“If 1MDB funds had not been misused, the large amount of money could have been used to build tens of thousands of houses nationwide under the People’s Housing Project,” he said in a statement today.

According to the US Department of Justice (DOJ), Riza Aziz had purchased the Qentas Townhouse at Belgravia, London, UK in 2012 for 23.25 million pounds.

The DOJ claimed the money to purchase the property originated from 2012 bonds raised by 1MDB for the purchase of power assets.

Around US$1.367 billion out of the a total of US$3.5 billion from the two bonds were allegedly misappropriated, according to the DOJ, which is probing the laundering of 1MDB funds through the US financial system.

Tan pointed out that the government had previously told people to change their lifestyles following the removal of subsidies and is now telling people to rent instead of buy.

“The fact is the BN government is trying to cover up its corruption and failure at the expense of the people,” he said.

Tan said people buy property at a young age to ensure that they could own a home by retirement as mortgage loans are usually 35 years long.

However, this is becoming more challenging with the rising cost of properties due to pricier raw material from the Goods and Services Tax as well as stagnated income.

On Thursday, Johari advised Malaysians to change their mindset about renting and only purchase properties when they are financially stable.- Mkini