MOF, BNM & KPKT To Discuss Long-Term Housing Loan Strategy - Ahmad Zahid

PUTRAJAYA, Oct 10 (Bernama) -- Proposals under the National Housing Policy, including the provision of long-term housing loans, will be discussed by the Finance Ministry with Bank Negara Malaysia (BNM) and the Housing and Local Government Ministry.

Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said this was among the matters agreed upon during the Executive Committee Meeting of the National Action Council on Cost of Living (NACCOL) held here today.

“This is to ensure that lower-income individuals and households can own homes without being burdened by the rising house prices,” he said in a statement after the meeting.

Ahmad Zahid, who is also NACCOL Executive Committee chairman, said the meeting also discussed the household debt-to-GDP ratio, which increased from 67.2 per cent in 2002 to 81.2 per cent in 2022.

He added that the residential property sector now dominates household loans, with housing credit climbing from 36 per cent in 1997 to 59.7 per cent in 2022, which has a significant impact on disposable income levels, and as such, the meeting agreed to look into the matter.

During the meeting, the Department of Statistics Malaysia presented the status of the Cost of Living Indicators 2023, developed to provide insights into the expenses required for households to meet a decent standard of living, including social participation.

Ahmad Zahid said that Prime Minister Datuk Seri Anwar Ibrahim is scheduled to launch the indicator on Nov 2, adding that it is expected to add value to the government’s policymaking on cost-of-living issues, particularly in implementing targeted aid to target groups.

Another topic discussed was the co-payment features for Medical and Health Insurance and Takaful (MHIT), with the meeting informed that this approach could provide consumers with more options and encourage healthy competition among insurers and takaful operators to offer products suited to consumers’ financial capacities.

“According to BNM, the co-payment feature can offer prices that are 19 to 68 per cent lower compared to products without co-payment, demonstrating a good balance between supply and demand in the country’s healthcare sector,” said Ahmad Zahid.

The meeting also discussed the implementation of two co-payment features, namely deductibles and co-insurance/takaful, which could create a conducive and sustainable healthcare ecosystem through transparent medical billing and policyholder involvement.

-- BERNAMA