Residential Rental Act: BNM to work with Cagamas to develop module for landlord, tenant

November 24, 2017 @ 9:52PM

KUCHING: Bank Negara Malaysia (BNM) is collaborating with Cagamas Bhd to formulate financing module for landlords and tenants.

Governor Tan Sri Muhammad Ibrahim said the collaboration between the central bank and the national mortgage corporation was to support growth of the nation’s residential rental market.

“BNM support the move by the government to formulate the Residential Rental Act to protect landlords and tenants, which was revealed in the 2018 Budget recently.

“BNM is working together with Cagamas to support efforts to develop and offer houses for rental by coming out with a financing module, which is more innovative to landlords and tenants,” said Muhammad in his speech during the launching of Sarawak Financial Carnival here today.

Prime Minister Datuk Seri Najib Razak when tabling the 2018 Budget last month had said that the government proposed a 50 per cent tax exemption of rental income received by residents not exceeding RM2,000 month as a move to promote rental of residential homes.

The exemption, which is a move introduced for the first time in 60 years, would be effective from next year until 2020.

BNM, said Muhammad, is also committed in establishing an inclusive financial service to ensure all segments of the community including rural folks living in the interiors of Sarawak.

“This is our on-going effort which involved participation from bank agents to ensure that all segments of the community benefit from the financial services.

“Over the years, the number of bank agents in the state have significantly increased from only 14 in 2012 to 632 to date.

“Almost 99.7 per cent of the Sarawak population and 97 per cent of the districts in the state are benefitting from this service,” he said.

Muhammad later witnessed the official launching of 'Perlindungan Tenang', an affordable insurance and takaful scheme aimed at getting 75 per cent of the population and micro-enterprises insured by 2020.

Targeted to reach out to eight million working-age people and over 700,000 micro enterprises, the initiative is a collaborative efforts between the central bank, the Life Insurance Association of Malaysia (LIAM), Malaysian Takaful Association (MTA) and General Insurance Association of Malaysia (PIAM).

The first batch of 10 affordable protection plans including six life insurance products were unveiled by Chief Minister Datuk Patinggi Abang Abdul Rahman Zohari Abang Openg.

Other affordable protection plans rolled out during the ceremony included three family takaful products and one general insurance product.

Bank Negara Malaysia (BNM) Governor Tan Sri Muhammad Ibrahim says the collaboration with Cagamas Bhd is to support growth of the nation’s residential rental market. NSTP pic.