• The government has continued the scheme through the provision of guarantees of up to RM2 billion through Budget 2022 in an effort to increase the number of participants from targeted groups.
  • Deputy Finance Minister I Datuk Mohd Shahar Abdullah: [The effort] is expected to benefit between 5,000 [and] 6,000 targeted households including young people, gig workers and micro-entrepreneurs to enable them to own their own homes.

KUALA LUMPUR (Aug 10): A total of 13,038 applications worth RM1.5 billion have been approved under the Housing Credit Guarantee Scheme from its launch in 2008 until May 31 this year, said Deputy Finance Minister I Datuk Mohd Shahar Abdullah.

Speaking in the Dewan Negara on Wednesday (Aug 10), he said the government has continued the scheme through the provision of guarantees of up to RM2 billion through Budget 2022 in an effort to increase the number of participants from targeted groups.

“[The effort] is expected to benefit between 5,000 [and] 6,000 targeted households including young people, gig workers and micro-entrepreneurs to enable them to own their own homes.

“In addition, the scheme has also been improved where the financing guarantee limit has been increased from RM300,000 to RM400,000 which also includes legal fees and property valuation fees,” he said.

Shahar was replying to a question by Senator Datuk Arman Azha Abu Hanifah about how many people have benefited from the Housing Credit Guarantee Scheme so far, and what measures the government will implement to increase participants in this programme.

Shahar noted several initiatives have been taken to promote the programme.

This includes joint promotions between Syarikat Jaminan Kredit Perumahan (SJKP) and the Ministry of Housing and Local Government under the i-Biaya programme, as well as SJKP's involvement under the Keluarga Malaysia Aspiration Tour programme, which covers every state including Sabah and Sarawak.

This is in addition to the promotion of the scheme through mass and electronic media and billboards from time to time, besides close cooperation with stakeholders such as financial institutions and developers to jointly promote and approve financing applications under the Housing Credit Guarantee Scheme.

“The government will always be committed to introducing initiatives to help all groups, especially the B40 group, to own their own homes in the future,” he added.

Prior to this, the government during the presentation of Budget 2008 on Sept 7, 2007 had announced a guarantee scheme to financial institutions to enable members of the public who are capable but do not have proof or documents of official income (salary statement) or earn irregular income to access housing financing up to 100% from selected financial institutions.

The scheme is different from regular home loans offered by banks which generally require borrowers to have a steady income and have official proof of income.

In this regard, SJKP — a Minister of Finance Inc company — was established in 2007 with the mandate to provide a housing credit guarantee scheme to overcome the problems of these groups.

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