FundMyHome: Tong tells Najib 'you are wrong again'

EdgeProp Sdn Bhd today clarifies that its property crowdfunding scheme FundMyHome (FMH) was only launched two days after Budget 2019 was tabled because they were the initiator of the idea and not the government.

In an open letter to former prime minister Najib Abdul Razak, EdgeProp chairperson Tong Kooi Ong (above) described the former’s Facebook posting on FundMyHome as Najib being "wrong again".

“With respect, you are wrong again.

“We have thought long and hard in the past few years about finding a solution to help Malaysians, especially those with young families, who desire to own a home of their own instead of renting,” Tong wrote.

He said after crystallising the idea, they took it to the government besides engaging the various regulators over the past several months, culminating in having the idea included when Budget 2019 was tabled in Parliament on Nov 2.

Najib, who tabled nine consecutive federal budgets as finance minister previously, had sardonically said in a Facebook post that he was "impressed" by the property crowdfunding scheme.

This was because he said the platform for FundMyHome, which is owned by a private company, was only launched two days after Budget 2019 was tabled on Nov 2.

The former premier also noted the Securities Commission (SC), which has been entrusted to regulate and facilitate the initiative's peer-to-peer financing schemes, claimed it would examine the details on Nov 5, three days after Budget 2019.

Responding to Najib’s comments, Tong explained that FundMyHome did not currently require regulatory approval as the financing of the scheme is open only to institutions and not the retail public.

“Approval for retail public participation as investors will be required and we will work with the regulators to have this done by the first quarter of 2019.

“Let me stress that this initiative came from the private sector and will not require any government funding, concessions or guarantees, as you had insinuated in your Facebook post.”

Private sector initiative

Below is the Tong’s open letter in full:

"YB Dato Sri Najib Razak,

With respect, you are wrong again.

In response to your Facebook posting on FundMyHome, the reason why FMH was launched two days after Budget 2019 was tabled is because EdgeProp Sdn Bhd was the initiator of the idea. We have thought long and hard in the past few years about finding a solution to help Malaysians, especially those with young families, who desire to own a home of their own instead of renting.

After crystallising our idea, we took it to the government and have been engaging the various regulators in the past several months, culminating in having the idea included when the Budget was tabled in Parliament on Nov 2.

FundMyHome does not currently require regulatory approval as the financing of the scheme is open only to institutions and not the retail public. Approval for retail public participation as investors will be required and we will work with regulators to have this done by the first quarter of 2019.

Let me stress that this initiative came from the private sector and will not require any government funding, concessions or guarantees, as you had insinuated in your Facebook post.

If you care to watch the video on the launch of FMH, you will realise this was clearly articulated by the YAB Prime Minister, the YB Minister of Finance and myself.

You also said that FMH will not benefit the people, but did not put forward any reasons. I will wait to read what they are and look forward to a discourse with you on this in the future.

FundMyHome is an innovative solution enabled by digital technology and the alignment of the interests of all stakeholders to help some Malaysians own their homes, at no cost to taxpayers.

Thank you and kind regards

Tong Kooi Ong
Chairman EdgeProp Sdn Bhd."