KINIBIZ The bumiputera agenda is alive and well in the 11th Malaysia Plan (11MP). And buried in the massive 370-page tome is a proposed solution to the bumiputera quota quandary for the property sector.
“A mechanism to enable bumiputera institutions to purchase unsold bumiputera lots in new property developments will be introduced,” read page 3-33 on how the 11MP aims to enlarge the bumiputera share of wealth ownership. “These institutions will own the property and receive rental income until the property is acquired by interested bumiputera.”
In simple terms, the government wants to start allowing bumiputera institutions to buy the unsold bumiputera-quota property units in new property development projects. They will then rent these properties out to pass the time while waiting for interested bumiputeras to come and buy these properties from them.
Does it sound like a good idea? At first, probably. Helping bumiputeras own their own roofs has been a longstanding item on the overall national agenda.
But on deeper reflection the proposal does nothing to help the average bumiputera person own his or her first home.
The problem is just a symptom
The problem that the government wants to fix through the proposal is that there are significant numbers of unsold bumiputera-quota properties in the market, unable to find buyers. But this is just a symptom of a deeper problem.
It may seem strange. Simple logic suggests a buyer offered an exclusive discount at any property development their heart is set on would gleefully take up what they can. Especially if other buyers don’t enjoy the same discount.
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This article was written by Khairie Hisyam.