Despite the scepticism surrounding it, Finance Minister Lim Guan Eng said the property crowdfunding scheme being studied by the government is a risk worth taking if it means delivering on Pakatan Harapan’s promise of building one million affordable homes in 10 years.

He said the scheme has been discussed with Bank Negara and the Securities Commission, which have raised no objections so far but it is still subject to the mechanism being worked out.

"We spent quite some time studying it in detail because the prime minister has sanctioned the idea, and we found that it is doable.

"As I’ve said, with all these safeguards in place, Malaysia can blaze the path to enable homeownership on a larger scale.

"Not only his (Edge Media Group chairperson Tong Kooi Ong) head on the chopping block, my head is also on the chopping block! But if we can – as Tun mentioned – fulfil that one million-house promise, I think it is a risk worth taking,” he told reporters in Semenyih today.

He was speaking to reporters at a press conference after launching Edge Property Sdn Bhd’s FundMyHome platform, where he was asked to respond to criticism from the Home Buyers Association.

In his speech at the launch, Prime Minister Dr Mahathir Mohamad said he was sceptical of Tong’s proposal to allow those who are unable to afford a typical home loan.

He said he found it to be too good to be true and told Tong to prove that it works.

“So that is (what) is happening today – he is trying to prove it to me. He has proven to the minister of finance to the extent that the minister of finance mentioned it in his budget (speech).

"But for me, I want to see the house; I want to see to see the owner. If this works, then a lot of people will be able to buy houses. If a lot of people buy houses, then the number of houses that would be built during the period Pakatan Harapan is in power, will reach one million houses in 10 years’ time," he said.

He joked that if the scheme fails, he would not have Tong lined up and shot, but that Tong (photo) would have to go into exile.

Lim first mentioned the crowdfunding scheme in his budget speech on Friday.

He said the government will be approving private sector-driven crowdfunding platforms that would provide first-time home buyers with alternative sources of financing.

"These exchange platforms will be regulated by the Securities Commission under the peer-to-peer financing framework.

"As an example, the buyer will be able to acquire a selected property for 20 percent of the price of the property, while the balance of 80 percent will be fulfilled via potential investors who are interested to fund the acquisition in exchange for the potential appreciation in value of the property over a particular period of time […]

"This financial innovation will be the first in the world, and if successful, will transform the affordability of homes for first-time home buyers in the country. The first exchange is expected to go live in the first quarter of 2019, after all necessary approvals are obtained from Securities Commission," he said in his speech.

The Home Buyers Association reportedly responded to the budget speech saying that the problem is of high house prices and not lack of financing options.

It also expressed concern about growing property speculation, property scams, and bad debts, according to a report by the Malay Mail.

When asked, Lim said the crowdfunding scheme would have the usual safeguards of a security regulated by the Securities Commission.

He said the ministry will also be holding dialogue sessions with the House Buyers Association and other stakeholders to explain the scheme.

"I understand the concern. It is because it is the first in the world […]

"If the House Buyers Association is not concerned and just takes it based on two paragraphs of the budget (speech), then there is something wrong with the House Buyers Association.

"Definitely, they should be concerned. But we want to explain to them the mechanics," he said.

Meanwhile, Tong explained the investors on the FundMyHome platform are currently institutional investors like Maybank and CIMB Bank, and other banks expected to join in the future.

Once the Securities Commission gives the go-ahead, then public investors will be able to invest in equity on the houses too, as well as trading it on the market.