Cagamas plans shared equity programme for housing

KUALA LUMPUR: Cagamas Bhd is working towards introducing a shared equity programme for housing, said president and chief executive officer Datuk Chung Chee Leong.

He said Cagamas was looking at how to replicate similar programmes that had been implemented in the United Kingdom and Australia to fit the Malaysian housing scenario.

“We hope to get the blueprint ready by year-end,” he said on the sidelines of the “Constructing and Financing Affordable Housing Across Asia” conference, jointly organised by Cagamas and the World Bank, here, yesterday.

Housing and Local Government Minister Zuraida Kamaruddin said under the proposed programme, Cagamas would provide a 20 per cent deposit from the buyer’s side with the remaining to be provided by the bank.

Under the proposed scheme, there will also be an alternative financing, where Cagamas will guarantee up to 100 per cent of the house price.

“We hope this proposed scheme can help the Bottom 40 households.”

Zuraida said to complement the rent-to-own scheme that was in place, the ministry was looking for investors, including foreigners, who were interested to help pay for a lease period of three to five years.

They would be absentee investors during the construction period of three to 3½ years. The scheme has so far drawn interest from investors in South Korea, the Middle East and China.

“These financiers will park the money with Cagamas first before it is distributed,” she said.

We hope to get the blueprint ready by year-end. DATUK CHUNG CHEE LEONG Cagamas Bhd president and chief executive officer