SPN to borrow RM1.5 bln from KWAP, EPF
30/06/2003 theedgedaily.com  By Sidek Kamiso

Syarikat Perumahan Negara Bhd, will borrow RM1.5 billion from Kumpulan Wang Amanah Pencen (KWAP) and the Employees Provident Fund (EPF) to finance its housing projects, says Second Finance Minister Datuk Dr Jamaluddin Jarjis.

He said the government, which is the sole shareholder of SPN, would provide a guarantee for the loan that would be utilised to kick-start SPN's housing project.

"It will be a bridging loan for the projects. More importantly, it will give better returns to the funds," Jamaluddin told reporters on June 30 after a briefing on the progress of the government-owned housing developer. He did not elaborate on the details of the proposed loan package.

Under the recent economic stimulus package announced in May, SPN was appointed the key government agency to build more affordable houses. SPN will build at least 150,000 affordable houses, each priced at RM150,000, over the next five years.

Besides building new homes, Jamaluddin said SPN was expected to fork out some RM200 million to refurbish government-owned housing projects and RM300 million to revive abandoned housing projects.

The refurbishment was necessary as some housing projects did not have the appropriate facilities, he said.

"Some of these houses were quite old and the refurbishment is aimed at improving the quality of lives of the occupants," he added.