Last year when Najib launched his “My First Home Scheme”, I said that the scheme will not solve housing issues, but instead drive price up further and will only enriched the bankers and developers. There is nothing for the people except to make them debtors even further and create a housing bubble.
By mid-way increasing the cap of the loan under this scheme, Najib is merely aggravating the problem. It is a completely directionless policy. Neither here nor there. Imagine those earning below RM3000 a month planning to purchase RM400,000 property? Do something about the property price, not facilitate the increase further by encouraging unrealistic purchase!
Today, apparently, even the business sector thought that the scheme is a bad idea. Bankers have not approved a single application for the said scheme even though the government has committed to underwrite the 10% downpayment (deposit) typically required for property purchase. This was because, bankers know its bad business to dish out housing loans for the low income group. Najib must either be dreaming or he is not thinking even simple logic when he pushed the social responsibility of the government to the private sector, imagining that bankers will forgo profit to do the government’s dirty job.
It’s simple logic, the scheme was doomed to fail from the beginning. Najib is just not listening to anyone. If he’d gone all the way with his neoliberal advisors, the government would probably announce that they will underwrite 100% of the housing loan. But that will only prove our criticism to be true, that his scheme ultimately benefit bankers and developers without doing any good thing to the exorbitant property market.
Alas, it is apparent that Najib’s government has no solution to the problem of the poor. Now, even the business sector is ridiculing his policy.
(Pic source: The Internet)