Lembah Pantai parliamentarian Nurul Izzah Anwar has suggested that a referendum be held among residents of public housing to see if they would opt for the housing loan scheme mooted by the government.

NONE In an open letter to the Federal Territories and Urban Wellbeing Minister Raja Nong Chik Raja Zainal Abidin, Nurul ( right ) said residents should be asked which of the following three options they would prefer:

1) The government’s proposal for a loan scheme supported by the Employees Provident Fund (EPF) at 6.5 percent interest rate;

2) A government soft loan similar to the one extended to the National Feedlot Corporation at 2 percent interest rate; or

3) An interest free hire-purchase scheme.

“Options two and three can be offered as the minister had previously stated that the government has sufficient funds, despite sourcing funds from EPF,” she said, adding that Pakatan Rakyat fully supports the scheme’s intention of providing housing for the lower-income people.

Giving an example of a RM35,000 low-cost house, the PKR parliamentarian said those opting for the hire-purchase scheme will have to pay RM117 a month (excluding maintenance fees).

“Low-cost public housing has already been built by the DBKL and are already occupied, and its costs have already been accounted for.

“The government need not borrow from EPF or any financial institution,” she said, adding that such a scheme should also be extended nationwide.

Facing criticisms, the EPF has explained that the move was a sound investment venture with the government-guaranteed 5.5 percent returns per annum.

The risk will be borne by a special purpose vehicle of the Federal Territories Foundation, which will screen the applicants.

It added that while the agreement has not been signed, it entails an initial facility of RM300 million with further loans at the discretion of the EPF investment panel.

The government had announced that the target of the scheme would be to help those who cannot get access to credit via conventional commercial means.