It is ludicrous to hear that Prime Minister Najib Razak wants to pump more Malaysian money into US infrastructure and Boeing planes to boost the US economy, which has a GDP of US$19 trillion. He should first handle the serious structural problems facing the Malaysian economy (GDP US$296bn).
One of the major structural problems lies in the housing sector. Reports indicate the property market in Malaysia is slowing down. And yet many buyers are still unable to secure bank loans to buy homes, many of which are priced beyond their reach.
This has prompted Urban Wellbeing, Housing and Local Government Minister Noh Omar to come up with a ‘bright idea’. He reportedly announced that property developers could apply for moneylending licences! According to the Edge, the Moneylenders Act 1951 does not have any provision to restrict developers from applying for such licences.
But everyone knows that the real issue is not that the banks don’t want to approve housing loans.
There are two real and related problems.