SEMENYIH, Selangor (Nov 4): Finance Minister Lim Guan Eng said today the government will engage with stakeholders like the National House Buyers Association (HBA) before implementing the peer-to-peer (P2P) home financing exchange platforms.
He said it is normal for such property crowdfunding exchanges to meet with scepticism as they are something new. But if it materialises, it will be the first of its kind in the world.
"It is good for HBA to say something about it and not just accept the whole idea based on two paragraph of words from the Budget 2019 speech. We will have a dialogue with stakeholders like HBA to explain what it is about," he told a press conference after the launch of an innovative property portal called FundMyHome.com by EdgeProp Sdn Bhd here today.
"So far, we have done the due diligence with Bank Negara Malaysia and the Securities Commission Malaysia (SC) and there has been no objection. But we need to look into the details because (if) it is an exchange, there will be some safeguards," he said.
When tabling the Budget 2019 on Friday, Lim said the government will be approving private sector-driven property crowdfunding platforms which will serve as an alternative source of financing for first-time home buyers.
Lim said these exchange platforms will be regulated by the SC under the P2P financing framework.
Subsequently, HBA was reportedly disagreed with the “crowfunding“ scheme, expressing concern that it will encourage the growth of more property speculation and bad debts.
Addressing allegations that the government has broken its promise to allow National Higher Education Fund Corp (PTPTN) borrowers to pay only after they earn more than RM4,000 a month, Lim said there wasn't any choice.
"We got no choice because of the government's current financial condition. That is why we stated there progressive repayment of 2% to 15% of their monthly income, we also understand them. If Jho Low had not done anything (in relation to the 1Malaysia Development Bhd scandal), if our money was not stolen, we could do as we had promised," he said.
In Budget 2019, Lim said to ensure PTPTN's sustainability, the government will introduce progressive loan repayment schedule with a percentage ranging from 2% to 15% of the borrowers’ monthly income depending on their income level.
This repayment schedule will only apply to those with at least RM1,000 in monthly income.