Bumiputera discount: A sensitive topic that must be addressed

ARCHIVES 2013

By admin-s On Aug 6, 2013

HBA honorary secretary-general Chang Kim Loong said one must look at the spirit of the bumiputera discount, which was to allow not so well off bumiputeras to own homes and avoid polarisation of neighbourhoods.

Terence Fernandez, fz.com

A CAP on the 7%-10% discount for bumiputera house buyers is a controversial but much-needed initiative to address spiralling house prices.

The National House Buyers Association (HBA) said the powers-that-be have to just bite the bullet and explore such reforms if it is sincere in providing affordable housing to all.

In its presentation on July 17 at a discussion in housing issues, the HBA proposed that bumiputera discounts be limited to the first two properties.

“It gives food for thought as to why the well-off should also enjoy this privilege,” he said, revealing that the HBA proposed high-end properties such as penthouses, semi-detached houses and bungalows be exempted from the bumiputera discount privilege.

It also proposed a price cap of RM1 million to enjoy the discount.

Other than that, a growing number of unsold bumiputera lots is also contributing to the glut.

“Instead of looking for more development sites, these unsold units should be opened up faster,” Chang said.

This is one area where the HBA and the Real Estate and Housing Developers Association (Rehda) are on the same page.

Rehda president Datuk Seri Michael Yam had last year proposed that unsold bumiputera lots be allowed to be disposed of to non-bumiputeras six months after the property receives its certificate of fitness (CFs).

There are about RM4 billion worth of unsold bumiputera property and Rehda has also been championing for a review of the 30% bumiputera quota imposed on developers.