Malaysia’s new housing fund attracts hundreds of applicants ahead of launch

Officials tease possibility of extending the Fund for Affordable Homes for more than two years

Kuala Lumpur, Malaysia. ESB Professional/Shutterstock

The Malaysian central bank’s MYR1-billion Fund for Affordable Homes has attracted hundreds of prospective home buyers since its opening to applicants earlier this month, reported via The Sun Daily.

More than 1,037 individuals were drawn to the initiative through a financial literacy programme with the Credit Counselling and Debt Management Agency (AKPK), Bank Negara Malaysia (BNM) Governor Datuk Nor Shamsiah Mohd Yunus revealed at the scheme’s official launch today.

The fund also received 16 applications since its official Rumahku portal went live on 2 January, according to Finance Minister Lim Guan Eng. Five of the applications have been approved so far.

“This is good progress even though it has not been promoted. If there is an opportunity, we will extend this fund beyond the targeted two years, depending on demand,” said Lim.

Announced in November, the fund aims to help low-income earners purchase their first residential properties. The fund will be available until 2021 or until it is fully utilised.

The fund’s target income group comprises Malaysian citizens with a monthly household income not exceeding MYR2,300 (USD560). The scheme offers a financing rate of up to 3.5 percent per annum for residential properties priced no more than MYR150,000.

Financial institutions participating in the fund include AmBank, Bank Simpanan Nasional, CIMB Bank, Maybank, and RHB Bank.