PUTRAJAYA: The government is considering setting up a Housing Guarantee Corporation which will manage Housing Guarantee Schemes to protect buyers and housing developers pertaining to abandoned housing projects.
Urban Wellbeing, Housing and Local Government Minister Datuk Abdul Rahman Dahlan said based on the initial proposal, the corporation would be under the supervision of the government which would hold 70 per cent equity while the remaining 30 per cent would be held by the private sector and agencies with funds such as the Employees Provident Fund and Tabung Haji.
He said based on early calculations, the Housing Guarantee Scheme was expected to require some RM400 million, with the government injecting an initial capital of RM280 million.
“The corporation will provide guarantees to buyers, if the housing project is abandoned, then the buyer will be compensated appropriately. It also gives a guarantee to the banks as the loans extended to buyers and developers will also be covered under this scheme.
“However, we are still considering the Housing Guarantee Scheme. We need to study the proposals received and a decision has not yet been made,” he told reporters after holding a roundtable discussion on the ‘Housing Guarantee Scheme of South Korea” here yesterday.
Also present were Urban Wellbeing, Housing and Local Government Deputy Minister Datuk Halimah Mohamed Sadique, four representatives of the Korea Housing
Guarantee Co Ltd, as well as representatives of the Real Estate and Housing Developers Association (Redha), Association of Islamic Banking Institutions Malaysia (AIBIM) and the General Insurance Association of Malaysia (PIAM). — Bernama