NOT many people are fans of (Tan Sri) Vincent Tan Chee Yioun for reasons that are best known to them.
This makes it difficult for the Berjaya Corp Bhd founder and non-executive chairman to convince the masses that he is indeed a tycoon with a big heart.
To simply paraphrase, the shrewd business prowess of the 69 year-old Batu Pahat-born Tan hugely overshadows his image as a philanthropist vis-à-vis his Better Malaysia Foundation (BMF) (formerly known as the Vincent Tan Foundation).
Fan or otherwise, perhaps one should accord him benefit of doubt that he has good intent to empower the less fortunate for he believes that affordable housing can realistically be priced from RM120,000 to RM300,000 for an apartment with sizes starting from 450 sq ft, 600 sq ft, 750 sq ft and up to 900 sq ft in the Klang Valley.
Which profit-oriented developers out there – in particular, those who claim to champion the construction of affordable properties – dare to think like Tan?
Obviously, there is a caveat to Tan’s brainchild – the Government must extend support in terms of charging lower land premiums and nominal development charges for affordable housing projects.
“As key partners to this initiative, the Federal and State Governments’ contribution could also be to sell development land at low cost to developers to build affordable housing projects, especially in urban locations close to transportation hubs which would translate into lower purchase prices for low-income house buyers,” justified Tan through BMF.
The issue of affordability in the quest of putting a roof above one’s head was sparked by a concern raised by Prime Minister Tan Sri Muhyiddin Yassin recently that the B40 (bottom 40% or poor) has now deteriorated to B50 due to the COVID-19 pandemic.
According to BMF, the banks and financial institutions must also play their part by providing loans with 100% financing to B40 house buyers.
“We understand that the loan applications of 60% of buyers of affordable homes are rejected by banks and financial institutions due to age or poor credit scores,” noted the foundation.
“Many first-time buyers from the B40 group are not able to pay the usual down-payment on a home purchase. 100% financing by lenders would resolve this issue.”
Moreover, the housing loans should also be that of “two-generation” with terms of between 40 and 60 years where repayments can be extended over two generations to ensure that monthly repayment instalments “are affordable, manageable and there is still sufficient disposable income left to provide the household with a decent standard of living”.
Inadvertently, the Government must also step in to guarantee the repayment of housing loans applied for by the B40 group borrowers for the purchase of affordable homes.
“This will ensure financial institutions will extend housing loans to B40 purchasers without the “fear” of assuming the credit risk and taking on bad debts,” BMF pointed out.
“The Government will not be financially exposed by providing its guarantee as it will have the security and right of foreclosure over the property should the guarantee be enforced.”
In all fairness, shouldn’t all parties – from the developers to the banks, B40 purchasers and the Government – take heed of Tan’s philanthropic motives? – April 27, 2021
