‘Monitor proposed home loan scheme’

September 17, 2016

SIBU: The proposed scheme to allow housing developers to offer home loans must be regulated and monitored by the government.

In making the call, Assistant Minister for Housing Datuk Abdul Karim Rahman Hamzah said this would prevent developers charging exorbitant interest on loans and resorting to ‘strong arm tactics’ in loan recovery.

He said anything that could facilitate house buyers especially from the low to middle income categories to own a house was much welcomed.

“If granting developers moneylending licence could help solve problems of purchasers getting financing, it is much welcomed. But the government must ensure the scheme does not cause added burden on purchasers. Interest rates must be competitive with banks and there must be a proper procedure for recovery of loans in the event of default.

“We do not want developers to charge exorbitant interest on loan and use strong arm tactics in loan recovery.

The scheme must be properly regulated and strictly monitored by the government,” Abdul Karim said when contacted yesterday.

He was commenting on a Bernama report recently that the Cabinet had instructed the Ministry of Urban Wellbeing, Housing and Local Government to review and improve the home financing policy stated under the Moneylenders Act 1951 for house purchase.

Gov should stick to the current practice of controlling house prices for the poor

September 12, 2016

KUCHING: The government should stick to its current practices of controlling prices of houses which are meant to the poor and middle income group.

This was the opinion of the State assistant minister of Housing Datuk Abdul Karim Rahman Hamzah when asked to comment by a local English daily on the disclosure that the Urban Wellbeing, Housing and Local Government Ministry would review the National Housing Policy, which will end next year.

“Personally, I think the government should just control prices of houses that are meant for sale to the poor and middle income group and don’t let speculators and developers determine the prices.

“This way, the low and middle income category can have the opportunity to own houses.

If we were to let developers, speculators and market forces to determine the prices, we can come to a situation where unscrupulous speculators will ‘control’ the housing market and its prices," said Abdul Karim.

The Urban Wellbeing, Housing and Local Government Minister Tan Sri Noh Omar, reportedly said he had asked his ministry to look into ways that would enable the government to control the prices of homes to be included in the policy so that people from the low and middle-income bracket could own property.

Abdul Karim also expressed his perplexity on the statement because as it is, the government was already ‘controlling’ the prices of affordable housing built by government agencies or the private sector.

No ruling yet on mosquito traps, says Abdul Karim

September 10, 2016

SIBU: Despite the detection of Zika virus in the country, the state Housing Ministry has not made any ruling on the requirement to install mosquito traps on all new housing projects.

Assistant Minister for Housing Datuk Abdul Karim Rahman Hamzah said Sarawak Housing Ministry would wait and see on the extent of the virus before making a stand.

He said this following disclosure by Minister of Urban Wellbeing, Housing and Local Government Tan Sri Noh Omar that developers were now required to install mosquito traps at all new housing projects following the detection of Zika cases in the country.

Noh Omar reportedly said the requirement must be met before any new developer’s licence was approved.

“We know that any new ‘additional installation’ on houses will mean an additional cost to developers and end users and this will not help the housing industry.

“We understand the danger posed by Zika virus but putting up netting to houses is just one of the preventive measures for one not to be bitten by mosquitoes but not a permanent solution,” said Abdul Karim, who is also Assistant Minister for Youth and Sports.

He said the federal ministry also needed to look at other ways to prevent the breeding of Aedes mosquitoes.

‘Study scheme to give out housing loans’

September 9, 2016

KUCHING: The government’s move in allowing developers to provide housing loan facilities may just be the right solution for property buyers facing difficulties in securing bank loans.

Assistant Housing Minister Datuk Abdul Karim Rahman Hamzah, who expressed this view, noted that house buyers nowadays were facing difficulties in securing loans from end financiers or banks to finance their house purchase.

“This is an interesting new development from the Minister of Urban Wellbeing, Housing and Local Government (Tan Sri Noh Omar) which is unprecedented but I believe we cannot rush through this new scheme without going through the finer details of it,” said Abdul Karim yesterday.

Abdul Karim, who is also Assistant Youth and Sports Minister, was commenting on Noh’s announcement yesterday that eligible developers can now apply for moneylender licences to provide loan facilities of up to 100 per cent to property buyers.

Noh said his ministry, which would be issuing the licence under Money Lending Act 1951 (Amendment) 2011), will allow developers to provide housing loans to overcome difficulties faced by buyers in securing bank loans.

Despite being open about the government’s move, Abdul Karim feared that it might be a handful for developers if they were expected to be ‘bankers’ at the same time.