KUALA LUMPUR: Allowing first time homebuyers to tap into their Employee Provident Fund (EPF) savings to cover the financing is a good suggestion, but details need to be worked out.
Discussions are ongoing on suggestions that funds in the EPF Account 2 be raised to 40 per cent from the current 30 per cent.
Second Finance Minister Datuk Johari Abdul Ghani said the government wants to ensure that withdrawals are made only for houses that are affordable for the homebuyer.
"And, as with unit trusts, the house purchaser must place sales proceeds from any subsequent sale back into the EPF," he said.
Johari was speaking at a media briefing following his keynote address at the National Chambers of Commerce and Industry of Malaysia (NCCIM).
"There will not be a blanket increase. We're looking at a specific percentage and how the EPF can allow part of the money to help top up instalment payments for first time homebuyers."
On the upcoming Budget 2017, Johari said the government wants to ensure that there is no duplication between ministries so as to reduce the level of operational expenditure.
He described the budget, which will be tabled later this month, as ‘rakyat friendly’, as funding for projects such as schools, hospitals and rural projects will continue.
Major ongoing domestic infrastructure construction projects, namely the MRT and LRT, the High Speed Rail and the Pan Borneo Highway are crucial in ensuring the sustainability of the economy for years to come.