LETTER | I question the government’s decision to hastily roll out a property crowdfunding scheme. 

It is simply not in line with the government’s pledge to make housing more affordable, as such schemes are often used to cause a rapid appreciation of value in real estate. 

The reasonable action by the government to help the common people afford homeownership is to mend the worsening economy and stimulate income growth, not via some dubious schemes.

Prime Minister Dr Mahathir Mohamad and Finance Minister Lim Guan Eng have misled the masses into believing that the property crowdfunding scheme is a government-backed method of providing secure and stable homeownership. 

Instead, it is, in fact, to assist developers to get rid of their unsold units, while leaving the affordability issue unresolved.

Lim had the audacity to call the scheme “innovative”. However, it is anything but. 

Property crowdfunding is a ploy to stimulate the sales of real estate, and was implemented in China a few years ago. The end result is an exacerbated unaffordability of properties, while first-time homeowners remain the biggest victims.

It not only does not help people afford housing, but it also further pushes the price ceiling of properties. 

After five years, if the aspiring homeowners cannot afford the homes they had been staying in at a refinanced market value, it will result in a sell-off, bringing us back to the problem of surplus unsaleable properties.

Ultimately, the scheme serves to fatten the wallets of developers, banks and real estate agencies, leaving all the root problems that plague the property market unsolved.

TEOW CHIA LING is the vice-chairperson of MCA Youth.

The views expressed here are those of the author/contributor and do not necessarily represent the views of Malaysiakini.