Instead of providing free down payment for first-time buyers of affordable houses, why not reinforce the vetting of the purchasers’ eligibility, so that only poor families in dire need of a roof over their heads can access these houses?

Housing and Local Government Minister Nga Kor Ming said during a recent media interview that he had proposed a new scheme to help first-time buyers pay for the down payment for their affordable houses.

As the minister has said, such a proposal is unique in this world while showcasing the Madani government’s people-first spirit.

Nga said his ministry would set up a National Housing Fund to help the country’s B40 and M20 families and individuals settle the 10% down payment up to RM30,000 for their first homes.

We support this government proposal because this will mark the first step to close the country’s widening wealth gap and ensure that everyone has a roof over his head.

Prime Minister Datuk Seri Anwar Ibrahim has recently launched the “Madani Economy: Empowering the People” initiative with the objective of empowering the people (including universal housing) and increasing Malaysians’ average lifespan within the next ten years, which are major indicators for Malaysia to be in the world’s top 25 countries in HDI.

As such, any program that will benefit the rakyat should be carried out once proper planning has been conducted.

While we welcome the latest move, we urge the government to think twice before putting the scheme into implementation.

Before making a final decision, perhaps the following ideas can be considered by the housing ministry:

1. Long-term planning must be conducted beforehand to prevent overburdening the treasury.

2. As this program is supposed to be one that benefits the rakyat, it should not be altered or suspended because of a change in federal administration.

3. Set the criteria to evaluate the eligibility of applicants as well as any supplementary conditions for the sale of property in future.

Based on the minister’s preliminary notion of providing this facility to first-time buyers from the B40 and M20 communities, there are as many as 20 million individuals in the 60% low- to middle-income families, based on total population of 34 million.

However, statistics show that home ownership among the country’s B40 and M40 communities is 73.5%. If we consider only B40 and M20 groups, approximately 3.98 million individuals (or households) are eligible for this “zero down payment” assistance program.

And if the government pays the full RM30,000 for each of these buyers, the total amount involved will be a whopping RM119.4 billion!

Given the government’s current fiscal position, this RM119.4 billion will have to be a long-term plan spanning ten years to be carried out progressively. Lest we forget, hundreds of thousands of new entrants are expected to pour into our job market every year.

To prevent this program from being shelved as a consequence of government change, it is essential to incorporate it in the long-term policy of the government and opposition.

As for the source of funds, on top of the annual fiscal budget, perhaps we can propose that property developers donate to the National Housing Fund. The amount of donation should be modest, or the developers may transfer the additional cost to regular buyers, resulting in stagnant sales.

Indeed, the affordable housing scheme is a positive policy that will benefit the people, but minister Nga must also be cautious about possible abuse of this policy.

First and foremost, as only first-time buyers are eligible under this scheme, is it possible for the “better-off” buyers to also apply for this RM30,000 down payment subsidy?

Secondly, by right the affordable homes are provided to people urgently in need of housing, but does the government realize how high the occupancy rate is? Affordable houses could have been exploited as a money-making tool for some with the connections, or ways!

Thirdly, affordable housing is present everywhere, even in KL’s affluent Mont’ Kiara area, which is unusual. We don’t mean the B40 should stay away from Mont’ Kiara, but building affordable houses in pricey lots in the city’s upmarket residential enclave is definitely unusual.

Fourthly, instead of providing free down payment for first-time buyers of affordable houses, why not reinforce the vetting of the purchasers’ eligibility, so that only poor families in dire need of a roof over their heads can access these houses?