CIMB welcomes PR1MA 'step up' end-financing scheme

KUALA LUMPUR (Oct 21): The “step up” end-financing scheme for the 1Malaysia People’s Housing (PR1MA) programme, as announced under Budget 2017, signals that the government is taking a long-term view on helping the rakyat with their lifelong financial planning, said CIMB Group Holdings Bhd.

"CIMB Bank is pleased to have been selected as one of the four Malaysian banks to provide PR1MA end-financing to facilitate home ownership of houses valued at RM150,000-RM300,000 among the lower-income group.

"In Asia particularly, home ownership is perceived as part of a sound retirement plan, and with these initiatives, the Malaysian government is clearly taking a long-term view on helping the rakyat with their lifelong financial planning," said CIMB Group chief executive Tengku Datuk Seri Zafrul Aziz in a statement.  

In the tabling of the Budget 2017 earlier today, Prime Minister Datuk Seri Najib Razak said PR1MA financing will be made easier and more accessible to buyers, with total loan of up to 90% to 100%, while loan rejection rates will be reduced drastically.

The scheme is a collaboration among the government, Bank Negara Malaysia, Employees Provident Fund  and three other local banks (besides CIMB) — Malayan Banking Bhd, RHB Bank Bhd and AMMB Holdings Bhd (AmBank).

Najib cited as an example that an applicant with a monthly income of RM3,000 now will only be eligible for a loan of over RM187,000. "However, through this special financing scheme, an applicant will be able to borrow more than RM295,000," he added.

Zafrul, meanwhile, lauded the Budget 2017 as both pragmatic and people-centric, with the right balance between public sector fiscal discipline and various thrusts that will help the private sector contribute meaningfully to the country's economic growth.

He also said continued capital expenditure on necessary infrastructure projects like improving public transport and road networks, particularly in Sabah and Sarawak and rural areas, is also evidence of the long-term view taken by the government on providing the right ecosystem to support future economic growth.

“As a banking group which is at the forefront of digital banking, we also welcome the government's initiative on making broadband services better and cheaper for the people, which is beneficial to both consumers and corporates.

“Overall, we are confident that the proposed measures in Budget 2017 will achieve the fiscal deficit target at 3% of gross domestic product for 2017, and will go a long way towards supporting domestic demand and the rakyat's short- and long-term interests, as well as in meeting the development targets set out in the 11th Malaysia Plan (2016–2020),” he added. — theedgemarkets.com

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