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Malay developers wants easy financing to develop reserve land

KUALA LUMPUR: The Malay Real Estate Developers Association wants easy financing from banks to develop reserve land as current terms and conditions imposed for loan application were not conducive.

Its president Mohd Wari Mat Zaki said failure to obtain bank loans has jeopardised the development of Malay reserve land.

"We hope relevant government agencies will be able to help association members obtain loans to develop the land as it will be able to offer properties at affordable prices to the Malays," he told a press conference here on Monday, Apr 11.

Explaining further, Mohd Wari said banks valued Malay reserve land 20% lower than commercial land, as such, this affected loan applications by Bumiputera developers.

The association estimated that there were 20,000 hectares of Malay reserve land, with a gross development value (GDV) of about RM5 billion, nationwide with RM1 billion worth of reserve land located in the Klang Valley.

"Association members can subcontract to smaller developers if banks grant them enough funding.

"If this can be realised, we hope to achieve RM1 billion in GDV within two years," said Mohd Wari.

Besides, it hoped government funds and projects would be given to association members.

"We want the association to come under the purview of Prime Minister Datuk Seri Najib Razak so that we can compete on a level footing with government-linked companies and prosper Bumiputera developers," he added. — Bernama

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