Bank Negara must ease regulation on loans for PPR - Rahman Dahlan

Bank Negara has been urged to simplify the rules governing bank loans for the low-income group to buy houses under the People's Housing Project (PPR).

Urban Wellbeing, Housing and Local Government Minister, Datuk Abdul Rahman Dahlan said the low-income group faced problems to secure bank loans because of the stringent regulations of the central bank, and incomplete documentation.

"As Minister of Housing, I wish to see more people owning homes. As such, I appeal to Bank Negara to review the matter," he said when winding up the debate on the 2016 Supply Bill at the committee level for his ministry, in the Dewan Rakyat, here, today.

He said Bank Negara should not regard loans to the low-income group as mere commercial transactions, because the facility had a much higher social value.

Abdul Rahman said it was a way of transferring the nation's wealth when the the low-income group or poor could own homes.

He said this was because low-cost houses, which were offered at a cheap price per unit, were actually worth more.

"For example, the PPR units, built by the government, are offered at RM35,000 per unit but the market price is much higher, can be up to RM150,000.

"So, when they succeed in buying a PPR house priced at RM35,000, they not only own a home but also a property valued at RM150,000," he added.