Reduce housing loan rates, says Cuepacs

KUALA LUMPUR: Cuepacs has urged the government to reduce the interest rate on housing loans from 4% to 2% in keeping with the market rates.

Its secretary-general, Ahmad Shah Mohd Zin, said many commercial banks were charging less than 4% and the government should also adjust the rates, which were first introduced in the early 70s.

At that time the interest rates at commercial banks were very high, in the region of 8%, so it was appropriate for the government to charge half the rate, he said.

"But now, after almost 40 years, the situation is entirely different and the rates need adjustment," he told Bernama on Wednesday, April 7.

He said the reduction would help ease the burden of thousands of civil servants, particularly those in the support group, who numbered around 450,000.

On overtime pay, Ahmad Shah said the local authorities and statutory bodies were the "biggest offenders" as they were refusing to pay the workers with the excuse that there was insufficient allocation.

"If there are no allocations, then the authorities should cut down on overtime work or find other sources of revenue," he said.

He said the non-payment for overtime work was demoralising many civil servants and this would ultimately affect the overall productivity.

He hoped that this long-drawn issue would be settled soon for the betterment of the service. -- Bernama