KUALA LUMPUR, Dec 8 — Bank Negara Malaysia made six recommendations when warning of a property sector imbalance and none was adopted by the government, a federal lawmaker said today.
Petaling Jaya Utara MP Tony Pua said the Cabinet instead chose to introduce a moratorium on approval for selected property valued over RM1 million.
“To address the high level of unsold residential properties, the (BNM) report suggested increasing encouragement for the rental market,” he said in a statement.
“On affordable housing, it was recommended that the government increase its efficiency in providing and allocating affordable homes. These policies are targeted and are designed to address the specific issues in the residential market.
“Why is the Cabinet adamant in ignoring the policy prescriptions by Bank Negara on the property market imbalance?” he said in a statement.
Yesterday, he criticised government ministers for seemingly contradictory statements regarding the moratorium, noting that what was initially announced as a “blanket ban” has been loosened to allow exemptions on a “case-by-case” basis.
Pua warned yesterday that such inconsistencies and uncertainties would harm investor and business confidence.
He also insisted that the Cabinet’s move would not address the issues highlighted by BNM, as it only affected supply in the longer term whereas the glut that the central bank warned of was already present and severe.