Housing Credit Guarantee Scheme an innovative scheme for homeownership, says academic

PETALING JAYA (Oct 29): An academic is of the view that the Housing Credit Guarantee Scheme is an innovative scheme for homeownership.

“Given that there are a lot of low-income households who may not have good credit quality, which banks may not feel confident to lend money to, this scheme will be helpful. This is good for those who have just started their careers and this scheme will allow them to have access to the housing loan earlier to those who have jobs but cannot have access to the loan,” Dr Yeah Kim Leng (pictured), professor of economics at Sunway University Business School told in his reaction to Budget 2022.

Budget 2022 which was announced by Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz today has allocated some RM2 billion under the housing credit guarantee scheme to assist gig workers and small traders without steady income to apply for a mortgage loan.

Meanwhile, Yeh added that given the concerns over a premature withdrawal of support for the economy that could derail a nascent recovery with GDP growth remaining weak at around 3% to 4% this year, the bigger budget for 2022 is in line with most expectations.

 “There were nice 'known' surprises such as the removal of the real property gains tax (RPGT) for properties sold after six years. Another is the electric surprise to the automotive sector for both the car makers or importers and consumers, who will enjoy tax reliefs and incentives for adoption of EVs although the charging infrastructures need to be incentivised as well.

“The budget with increased cash transfers and support for the low-income households and small and medium enterprises together with a more robust economic recovery will create the 'feel good' factor for an early election that is expected to be called in 2022,” said Yeh.

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