The Congress of Unions of Employees in the Public and Civil Services (Cuepacs) plans to hold comprehensive negotiations with financial institutions appointed by the government to manage housing loans for civil servants.

Cuepacs secretary-general Lok Yim Pheng said in a statement today that negotiations would be aimed at protecting the interest and welfare of public sector employees.

azlan "Civil servants are concerned that financial institutions will impose stringent housing loan requirements and would be more concerned on profits.

"Housing loans previously managed by the government gave preference to the welfare of employees by helping them buy homes without causing any burden," said Lok in the statement.

The government, during the 2013 Budget tabled in Parliament recently, proposed that the Public Sector Housing Loan Scheme managed by the Housing Loan Division be taken over by financial institutions.

Finance Ministry secretary-general Mohd Irwan Serigar Abdullah said four of the country's largest commercial banks have decided to cooperate with the government to offer housing loan schemes to civil servants.

- Bernama