KUALA LUMPUR, Sept 10 — CIMB chairman Datuk Seri Nazir Razak criticised today a government proposal to allow property developers to give out housing loans, saying it raised the risk of a debt crisis.
The banker said focus should be on ensuring that house buyers who can afford it are able to access bank loans at fair prices, giving borrowing subsidies to the needy, and providing more affordable housing.
“Well done FMII for speaking out quickly & firmly vs a dangerous idea,” Nazir said on Instagram, referring to Second Finance Minister Datuk Johari Abdul Ghani who had reportedly described as illogical Minister of Urban Wellbeing, Housing and Local Government Tan Sri Noh Omar’s proposal to allow property developers to offer loans to house buyers.
“More unregulated lenders and sub prime borrowers will compound the risk of a debt crisis,” Nazir added.
The National House Buyers Association and economists told Malay Mail Online recently that Malaysia risked a subprime crisis with the Urban Wellbeing, Housing and Local Government Ministry’s proposal for property developers to get moneylending licenses.
Noh had said the initiative, where property developers can offer loans at interest rates of between 12 and 18 per cent per annum, is intended to assist Malaysians who are unable to get a full housing loan from banks, or those who may only be given a partial housing loan.
