Penang’s joint motion to relax housing loan rules for lower-income groups received support from both sides of the isle in the last state assembly sitting in November.

Today, that motion was forwarded to Prime Minister Najib Razak, and copied to Urban Wellbeing, Housing and Local Government Minister Noh Omar and Bank Negara Malaysia governor Muhammad Ibrahim.

It was signed by Chief Minister Lim Guan Eng and state Opposition Leader Jahara Hamid on Feb 22.

“Never before in the history of Malaysia (has there been an instance) where both parties have come together to put aside their political issues to help regular folk get their homes.

“I have said many times that we need to resolve this problem. Commercial banks have ignored and treated low-income earners differently.

“What is the use if many houses are built but no loans are available? We want Bank Negara to look into this,” Penang Housing Committee chairman Jagdeep Singh Deo said at a press conference today.

In the motion, the DAP-led government and the BN opposition urged the federal government to look into increased loan rejection rates among prospective buyers of low-cost, low-medium cost and affordable homes.

The motion also urged the federal authorities to act against owners of low-cost houses who rented out their units to other parties.

In addition, they called for a new standard format for the ‘Sales and Purchase’ agreement to be drafted to include a clause that buyers must stay in the properties that they had purchased.

Both parties said the stricter rules proposed could be enforced via the Housing Development (Control and Licensing) Act 1966.