‘Give subsidies to housebuyers’

The Star 16/9/2004

A BACKBENCHER has proposed that the Government give subsidies to housebuyers as a way to stimulate the local economy instead of depending on foreign investments.

Datuk Mohd Sarit Yusoh (BN – Temerloh) said the Government had RM25bil in unused housing loan reserves of which RM10bil could be used for the subsidies.

“Depending on the person’s level of income, subsidies can be given to houses below RM70,000 or RM100,000,” he said when debating the Supply Bill 2005.

Mohd Sarit said many spin-off industries in banking, insurance, furniture, legal, bricks, cement and ceramic could benefit directly from giving the subsidies.

“The whole economy will move with only one (subsidy) programme,” he said.

He added that the RM3.80 to a US dollar peg had deterred many foreign investors and that the US, which was Malaysia’s biggest trading partner, would be facing economic slowdown next year.

Mohd Sarit suggested that the Government review the peg regime as it could have adverse effects if left for too long.

He also said that the Government should review its privatisation policies.