Premier hints at major developments in Sarawak’s finance sector, aiding housing industry growth

KUCHING: Sarawak Housing And Real Estate Developers’ Association (SHEDA) can expect some good news regarding significant developments in the finance sector within the next six months.

Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said SHEDA is in need of a robust government-owned financial institution to spur growth within the housing industry.

He said although Sarawak currently houses Mutiara Mortgage & Credit Sdn Bhd (Mutiara), a Housing Development Corporation (HDC) subsidiary, it is merely an interim to assist the low- and middle-income households to own their first home.

“But what SHEDA needs is, across the board, which will create a roadmap for the private housing and real estate developers,” he said.

“Just wait and see what will happen in the next six months, in the finance sector… I cannot reveal it now, but there has been some positive progress,” he said.

Abang Johari was speaking at the 30th Anniversary of the SHEDA’s Annual Dinner and Excellence Award at Borneo Convention Centre Kuching (BCCK) here last night (Nov 25).

Earlier, SHEDA President Augustine Wong listed several items in their wish-list, including for SHEDA to be involved in the deliberations on the mechanisms and quantum relating to payment into the proposed trust fund in lieu of building Affordable Housing; to expand the Housing Deposit and Repayment Scheme (HDRAS) to benefit more Sarawakians; to increase the household income threshold to RM15,000.00 per month and to remove the zoning requirements; and to increase the HDRAS financial assistance to 10 per cent of SPA price from the current RM10,000; to revise of the selling price of Sri Pertiwi to reflect actual cost of current property market conditions and to ensure availability of supply.

Wong said SHEDA also opined that federal financing for Sarawak housing should be channelled directly to the Sarawak government – to decide how to distribute grants and financial assistance for Sarawakians.

“We also ask for bridging financing to be offered to private developers through MUTIARA mortgage & credit, temporary waiver or reduction in duties of construction material and other incentives, such as exempting developers building affordable housing from Capital Contribution,” Wong added.

Meanwhile, Abang Johari said though the World Bank has categorised Sarawak as a high-income state; based on its revenue, this does not translate to the household income yet.

“Thus, the request to increase the household income threshold to RM15,000 per month is still quite high now, but we are working towards this,” he said.

He assured that the SHEDA’s wish-list would be taken into account, however, at the moment, the Sarawak government will not be able to respond to it one by one.

“Perhaps, we will work on it as a package, in addressing the requests, especially the affordable housing and finance aspect,” he said.

“You will need a strong finance institution to back up the industry. So, let’s keep a close eye and see what will happen in the finance sector next year,” he added.