31 Oct 2019

Is the Rakyat benefiting directly from PH’s attempts at relieving certain developers of their stocks?

The Pakatan Harapan government’s policy in solving luxury property overhang is to market it to foreigners, but the Rakyat in need of proper housing can only look on while these developers reap the rewards.

According to Bank Negara Malaysia Financial Surveillance Department director Qaiser Iskandar Anwarudin, Malaysia’s houses are ‘seriously unaffordable’; hence, the problem does not lie with the Rakyat being unwilling to buy houses or that banks are unwilling to approve housing loans. However, instead of coming up with policies to make housing more affordable to the people, the PH government opts to reduce the bar for foreigners to purchase properties in Malaysia down from RM1 million to RM600,000.

PH’s move is safeguarding such developers’ interest in selling their properties at a high price. At the end of the day, property prices will remain high in the country as the supply and demand in the market remains unregulated. The Rakyat would still be unable to afford houses.

Qaiser Iskandar said that the average Malaysian home instalment stands at 54.4% of the household debt, which is a significant portion of a family’s income. In the event of any setbacks to the family’s income, there would be an immediate consequence and risk of losing their homes.

Furthermore, with a lower threshold for foreigners to buy properties in the country, property prices are projected to rise and become even more unaffordable to the Rakyat ultimately. The situation could even escalate to liken the housing situation in Hong Kong where the locals are the ones suffering in the end.

The Pakatan Harapan government must be clear on its stance, is it a government for developers, for foreigners or a government for the people? Why was there a lack of consideration for the long-term effects?

The government should focus on improving the country’s economy and increasing the income of families whilst encouraging developers to build affordable housing that fits the market, and selling luxury properties via promotion to solve the oversupply. These initiatives would be far more effective, instead of a one-track policy which only benefits a specific portion of developers.

Dato’ Dr Mah Hang Soon

MCA Deputy President

-MCA Online-