Gerakan has proposed that a scheme to provide RM10,000 in credit to all first-time house buyers be included in the second stimulus package to be tabled in Parliament on March 10.

gerakan agm 2006 koh tsu koon Party president Koh Tsu Koon said, however, that the handout should be restricted to purchasers of low- and low medium-cost houses.

The government, he said in a statement today, should apply a sliding-scale approach that takes into account the cost of house and the buyer’s household income, in determining the quantum of assistance to each recipient.

Koh noted that measures are needed to stimulate the housing sector as it is a major engine of economic growth, with potential leverage to lift the nation out of a likely recession.

He also suggested that the government should facilitate the refinancing of mortgages by waiving stamp duty for a year and supporting the extension of the repayment period for loans on low- and low medium-cost properties.

If adopted, the measure would be similar to that used by the Australian government which extends credit of AUD$21,000 for all first-time house buyers.

najib tun razak 01 The proposal has been conveyed to deputy premier and Finance Minister Najib Abdul Razak in an economic memorandum prepared by Gerakan’s Central Economic Bureau and Sedar Institute.

The first stimulus package , tabled on Nov 4 last year was worth RM7 billion, of which RM1.2 billion was channelled for the construction of low-cost and low medium-cost houses.

Najib has promised that the second stimulus package will be more comprehensive .