Government guaranteed up to 120% loan for PPR & low-cost flats

The Government is guaranteeing up to 120% loan from the total amount borrowed by buyers without fixed income for the MTEN public housing projects (PPR) and low-cost flats.

Federal Territories and Urban Wellbeing Minister Datuk Raja Nong Chik Raja Zainal Abidin announced that an agency called the Housing Credit Guarantee Corporation had been formed under the Finance Ministry for that purpose.

“This agency will provide guarantee to banks on loans borrowed by buyers without fixed income,” he said.

“House buyers can borrow up to 120% loan on the unit cost. If the unit costs RM35,000, a loan of RM42,000 will be extended.

“The agency will also give guarantee to loans taken by fixed income earners of up to the 120%.”

Asked why the need for the extra 20% of the loan amount, Raja Nong Chik said this was because there were additional costs such as legal fees and mortgage insurance on the house.

“The mortgage insurance is a bank requirement, which takes up a big chunk, of about RM2,500.

“So the total cost of the unit could be RM4,000 more than RM35,000. If it’s just a 100% loan, buyers still have to come out with the extra cash which they may not be able to,” he said.

“Buyers should be able to obtain loans as long as they have a combined household monthly income of RM1,000.”

Raja Nong Chik said nine banks had agreed to the scheme and Bank Negara had organised a meeting with the finantial institutions three weeks ago.

A new three-month period has been set for buyers to sort out their loan matters with the banks, starting from Aug 1.

“If buyers encounter problems, they can refer to the DBKL Housing Management Department and even with my ministry through a unit that monitors bank loan matters.”

He said that after the three-month deadline, his ministry would try to help those who still could not obtain the loans.

Of the 18,201 eligible buyers so far, 11,499 have agreed to buy.

From the 11,499 buyers, 1,928 buyers have signed the sales and purchase agreement of which 1,080 are buying with cash while the rest are getting bank loans.

A joint carnival for sale of the said units will be held before Ramadan in cooperation with the banks, at a date to be announced later.

Credit - By LIM CHIA YING from TheStar

Raja Nong Chik: A year of learning

KUALA LUMPUR: Today marked the first year anniversary of Federal Territories and Urban Wellbeing Minister Datuk Raja Nong Chik Datuk Raja Zainal Abidin assuming his post and shouldering the responsibilities of the ministry.

Speaking at a Press conference, Raja Nong Chik expressed his gratitude for all the support and also advice given to him by the people, including non-governmental organisations.

“Before I stepped into this post as FT Minister, I was told that I would not be able to handle the big responsibility that comes with the post. They said a lot of things, including the fact that I would have a very complex task and so on. But, I take it all as a challenge."

With a year having passed, Raja Nong Chik was glad to say that Prime Minister Datuk Seri Najib Razak is happy with the positive developments and improvements achieved so far.

Adding that he felt like he was back in school, the minister said he still has a lot of things to learn and improve on.

"I feel as though I'm still in college, learning. If I were to describe how this whole thing feels, it's like I have just finished my first semester and Alhamdulillah, I've passed with flying colours since our Prime Minister is pleased with the improvements and my performance. But I'm still learning and hope to improve further."

As FT minister, the Key Performance Index (KPI) achieved includes the sale of flat units under the National Economic Action Council's (MTEN) public housing project (PPR). To date, about 39,000 out of 44,000 units have been taken.

He also cited the ministry's focus on improving the people's quality of life and eradicating urban poverty through redevelopment projects like the four-storey Kampung Kerinchi flats.

It is the first project to be carried out, involving 480 owners and 11 blocks. The project is the first where the public choose their own developers to carry out the task.

While the ministry's focus before was only to monitor the three federal territories of Labuan, Putrajaya and Kuala Lumpur, its role has now expanded to include the eradication of urban poverty throughout the country and organising urban well being programmes.

MANTAP is the way to go

KUALA LUMPUR: In conjunction with his one year anniversary as the Federal Territories and Urban Wellbeing Minister, Datuk Raja Nong Chik Raja Zainal Abidin today launched the ministry's five-year plan known as Strategic Plan and Information and Communication Technology (ICT) Strategic Plan 2010-2015.

The objective is to renew and implement the ministry's new direction, commitment and mechanism to realise a safe and developed Federal Territory.

Six core strategic steps were introduced, forming the acronym MANTAP (steadfastness) where M stands for 'modal insan' (human capital), A for 'aspek ekonomi' (economic aspects), N for 'nilai tambah' (added value), T for 'teknologi' (technology), A for 'alam sekitar' (environment), and P for 'penyertaan masyarakat' (public participation).

Raja Nong Chik said four core values -- 'cemerlang' (excellence), 'amanah' (trustworthy), 'mesra' (friendly) and 'prihatin' (caring) would govern the implementation of the strategic plan.

"We will not forget our main mission which is to spearhead development for the Federal Territories, improve the people's quality of life and eradicate poverty in the cities," he said.

The outcome-based approach framework, added Raja Nong Chik, also focuses on the people's needs. "If we really want people to measure well, improve their performance, and meet their public accountabilities, they must own this process." he said.

NADIRAH H. RODZI
Wednesday, April 14th, 2010 18:34:00

Source : Malay Mail