Johor Sultan proposes setting up of ‘Bank of Johor’

Sultan of Johor Sultan Ibrahim hopes besides providing housing loans, the proposed ‘Bank of Johor’ can also finance development projects and allow the people to open saving accounts and make investments. ― Bernama pic
Sultan of Johor Sultan Ibrahim hopes besides providing housing loans, the proposed ‘Bank of Johor’ can also finance development projects and allow the people to open saving accounts and make investments. ― Bernama pic

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JOHOR BARU, April 14 ― The Sultan of Johor Sultan Ibrahim has suggested that the state government set up its own bank to provide services to the people, including disbursing housing loans.

Proposing that the bank to be named “Bank of Johor”, he hoped besides providing housing loans, it could also finance development projects and allow the people of Johor to open saving accounts and make investments.

“With the state's cash reserves reaching RM3 billion and the revenue of the government as well as state-owned companies touching RM7.5 billion a year, certainly they can be shareholders of 'Bank of Johor',” he said when opening the 13th Johor State Assembly here, today.

Sultan Ibrahim said he tossed the idea as many people still could not own house because of their inability to obtain bank loans.

However, he commended the state and federal governments for their continued commitment towards building more affordable housing for low-income earners.

“I also welcome the cooperation extended by Bank Rakyat to Yayasan Sultan Ibrahim in providing housing loans to help the poor own home.

“The loan application registration will open soon and the selection will be made by a special committee based on certain criteria,” he said.

The financing facility of RM500 million was announced by Bank Rakyat chairman Tan Sri Abdul Aziz Zainal at the launch of the Johor Bank Rakyat Tower model here on March 23.

The proposed bank will enable civil servants and private sector employees in Johor to pay a deposit as low as RM1 to book low-cost and affordable housing unit.

The funding is earmarked for 6,000 low-cost and affordable housing units to ensure that low-income earners could have own home.

Sultan Ibrahim also thanked the federal government for its support and assistance to Johor to enable it to continue its economic development agenda in the forms of funding and public infrastructure construction that could woo investors to the state.

He said good relations between the state and the federal government was a catalyst for the country's strong economic growth.

Sultan Ibrahim said despite the challenging global economic situation, Johor managed to record the country's highest investments approved in the manufacturing sector for three consecutive years.

“For 2015, the investments approved were valued at RM31.1 billion, of which 90 per cent was from domestic investments and 10 percent foreign investments.

“The state government also recorded a revenue surplus for five consecutive years since 2011, with accumulated surplus until 2015 worth RM1 billion,” Sultan Ibrahim said, adding that he believed the encouraging performance was driven by good governance and efficient and transparent financial management. ― Bernama

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