Sultan of Johor envisions 'Bank of Johor' for housing loan

The Ruler said that there are still quite a high number of rakyat who cannot afford to own homes due to difficulties to obtain bank loans.

The bank would provide financial services for housing loans and financing the construction of housing projects, savings and investments.

“The state boasts RM3 billion fund in its reserve and the income earned by the state government and state-owned companies are totaled at RM7.5 billion every year … they can be the stake holders for this financial house,” said Sultan Ibrahim during the launch of the 13th Johor State Assembly at Sultan Ibrahim building here today.

He also welcomed the cooperation by Bank Rakyat to the Sultan Ibrahim Foundation to set up housing loans scheme for first-time home owners from the lower-income group.

Sultan Ibrahim added that the loan registration will be opened soon and selection of those eligible will be made based upon a set of criteria by a special committee.

Bank Rakyat Berhad recently collaborated with the foundation to launch the initiative, aimed at financing the construction of some 6,000 affordable homes which will be sold for less than RM100,000 to those who earn low wages but qualified as first-time home buyers with a down of payment or registration fee of only RM1.

These low-cost houses will be built using good quality materials. Furthermore, these homes will be sold at cost price as the Foundation does not wish to make any commercial profit.