First home scheme imprudent, says PAS

By Syed Jaymal Zahiid, Free Malaysia Today

KUALA LUMPUR: A PAS leader has warned the people not to fall for the government’s “My First Home Scheme” as it could prove to be disasterous.

The scheme, aimed at wooing support, is meant to provide full housing loans to fresh graduates earning RM3,000 and below.

“It will be politically unpopular and seemingly irresponsible if I opposed this scheme,” PAS central committee member Dzulkefly Ahmad told reporters at the Parliament lobby.

“However, it will be even more irresponsible and foolish if I do not caution (or) reprimand the government for such an imprudent measure,” he said, adding that the policy was “shortermist”.

This, the Kuala Selangor MP said, would expose the target group to undue financial stress and eventually into insolvency.

The scheme, launched on March 8, would help young workers to purchase houses costing between RM100,000 and RM200,000 with instalments spread over 30 years.

It might be well-intentioned, Dzulkefly said, but fears of loan defaults was real in light of the recent US sub-prime crisis which led to the global economic crunch.

“Getting 100% financing does not mean that the buyers have no costs to bear. They will have to pay the usual legal and transfer fees, which can be quite hefty for low-income earners,” he said.

Dzulkefly also claimed that Malaysia was facing a housing crisis amid a property boom which indicated that most young Malaysians could not afford to buy houses in light of the increasingly high cost of living.

“(So) what could a young adult with RM3,000 afford monthly?” he asked.

Increase income, not full loans

The Credit Counselling and Debt Management Agency reported that more than 50,000 cases had enrolled in the debt management programme with 10.6% of them unable to service credit card debts while 74.3% had repayment problems with housing loans and car loans.

 

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