Minister must explain to Cabinet move to allow housing developers to give loans to house buyers.

ENTOGENEX ZIKA & DENGUE AWARENESS CAMPAIGN



Noh must explain developer-sourced loans to Cabinet, says Zahid

KUALA LUMPUR: Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamid Hamidi wants Urban Well-being, Housing and Local Government Minister Tan Sri Noh Omar to give an explanation to Cabinet regarding his ministry’s move to allow housing developers to give loans to housebuyers.



“It was not discussed in Cabinet, and we request that he give an explanation on the matter at the Cabinet meeting,” Dr Ahmad Zahid said at a media conference after opening the 8th annual general meeting of the Makkal Sakti party here.

Noh had said on Thursday that eligible housing developers could apply for moneylender licences to provide loans of up to 100% to property buyers.

The licences would be issued by the ministry under the Moneylenders Act 1951 (Amendment) 2011, he said.



Some developers have supported the move while consumer groups and various experts have questioned it.

Second Finance Minister Datuk Johari Abdul Ghani has said that the root cause as to why many Malaysians are still without a house was not due to a lack of financial institutions willing to give loans but because of the low supply of affordable housing.

CIMB Group Holdings chairman Datuk Seri Nazir Razak said the move to allow developers to offer loans could compound the risk of a debt crisis in the country.