Bankers hail property measures
14/04/2007 The Star By Yeow Pooi Ling

PETALING JAYA: Banking industry players welcomed the latest Government initiatives to improve the public delivery system for the property sector.

The Association of Finance Companies of Malaysia chairman Datuk Seri Tay Ah Lek said that excellence in public service delivery system was “crucial and key to enhancing the productivity of the Malaysian economy”.

“With reduced processing time, there will be significant improvement in business efficiency and productivity. This will also reduce the holding cost for developers, which can then be passed on to consumers,” he said in a statement.

Furthermore, the shorter approval period for applications by developers implementing the build-then-sell (BTS) projects and those handling high-impact projects would set a new benchmark for the industry, Tay said.

Public Bank Bhd chairman Tan Sri Teh Hong Piow said the measures would further improve business and investors' confidence in Malaysia as a preferred destination for trade and investment.

He was also positive on the Government's move to:

Exempt the payment of the RM200,000 deposit for a housing developer's licence;

To do away with the condition that 30% of a housing scheme should comprise low-cost units; and

Give priority in all official matters concerning developers like amendments to land use and approvals of structure and building plans.

The measures would encourage developers to consider a partial BTS approach to their housing projects, Teh said.

RHB Bank Bhd is also optimistic of the incentives. Its head of consumer banking Michael Lor said: “The BTS concept will clearly benefit customers and we are ready to assist our present and potential customers by making home ownership a simpler and efficient process.”

He said customers would be able to enjoy competitive home financing interest rates, which were usually accorded to the completed properties segment.

“At RHB Bank, they would have a wide variety of packages to choose from; from lower rates in the initial years, fixed rates and base lending rate-pegged floating rate packages,” Lor said.