A student group today suggested that the housing discount be extended to all Malaysians in the low- and lower-middle income groups.

This was among the recommendations given to the government for the Eleventh Malaysia Plan by Persatuan Mahasiswa Universiti Malaya (PMUM) president Fahmi Zainol.

Currently, bumiputeras enjoy a seven percent discount upon the purchase of a property unit.

In a statement, Fahmi ( right ) advised that the discount should only apply to the purchase of the first housing unit.

He added that the government should absorb the discount as part of the initiatives to aid first-time home buyers.

The student leader said that although the discount was originally to assist the bumiputeras to own property, the idea has caused other unwarranted problems.

"It should be noted that this seven percent discount is absorbed by the developers, rather than being compensated by the government.

"While it may sound noble, no profit-maximising minded developer would absorb the discount which affects their bottom-line," he said.

As a result, the accumulated seven percent is distributed evenly onto other housing units purchased by non-bumiputeras, he added.