Minister: Government mulls reintroducing DIBS for first time home buyers

PR1MA Alam Damai in Cheras is an ongoing PR1MA Affordable Homes project in the Klang Valley. The project offered over 2,000 apartment units and is now 30% completed. PR1MA Alam Damai in Cheras is an ongoing PR1MA Affordable Homes project in the Klang Valley. The project offered over 2,000 apartment units and is now 30% completed.

The government is considering proposals by property developers to reintroduce the Developers Interest Bearing Scheme (DIBS) and relax lending guidelines to promote first home ownership, said Minister in the Prime Minister’s department Datuk Sri Abdul Wahid Omar.

He said the Real Estate and Housing Developers' Association (REHDA) has submitted their requests and are now in discussions with the government.

"We want to promote house ownership, but at the same time we also want to ensure that buyers have the ability to service the loan," said Wahid during the press conference after officiating the opening ceremony of Malaysia Property Exposition (MAPEX) in Mid Valley Megamall today.

The three-day event will see 78 developers offering 25,000 units of residential, commercial and industrial properties.

Under DIBS, developers will absorb the home loan interest while the property is being built, but the loan will still be disbursed during construction.

The scheme was abolished in 2014 on concerns that it encouraged property speculation and it hiked up property prices – some experts observed that selling prices of properties sold with DIBS went up by 5% to 15%.

He notes that by 2020, Malaysia’s population is expected to reach 32.5 million, and there will be huge demand for housing, especially affordable homes.

"The Special Economic Committee that I chair recently conducted a fact-finding exercise on the state of the property sector in view of the economic uncertainties. We found that demand for affordable homes exceeds present supply, and this need is especially critical in urban areas with a young population," he added.

Wahid did not elaborate on the findings of the committee.

At a press conference earlier this week, Perbadanan PR1MA Malaysia (PR1MA) noted that a million Malaysians in the middle income group – defined as those who earned RM2,500 to RM10,000 a month – had yet to own a home. Of this number, 450,000 resided in the Klang Valley.

The PR1MA board has approved 198,489 units and plans to approve 240,000 units in total by year-end.

Currently, 41,187 units are under construction, with 4,636 in Kuala Lumpur and 5,081 in Selangor.

PR1MA has completed 800 units and aims to complete 1,000 units by the end of this year, and 10,000 units by the end of next year.

Under the Budget 2016, PR1MA was mandated to build another 175,000 homes to be sold at 20% below market price.

Other schemes include 100,000 homes of Perumahan Penjawat Awam 1Malaysia (PPA1M), 22,300 apartment units and 9,800 terraced houses under Program Perumahan Rakyat (PPR), and 10,000 units of Rumah Mesra Rakyat.

To speed up the construction of affordable homes and remain cost-competitive, Wahid noted that there is an urgent need to adopt innovation technology, such as the industrialised building system (IBS).

"The government's affordable housing schemes under PR1MA, Syarikat Perumahan Negara Bhd (SPNB) and PPA1M, will take the initiative to implement IBS," he said.

According to Wahid, government agencies are now in the process of identifying the number of units to be built.

Under the Budget 2016, there will be a RM500 million IBS promotion fund provided by SME Bank to encourage the implementation of IBS.

Meanwhile, on the weakening ringgit, he said Malaysian investors who had purchase property overseas, such as in the UK, should take the opportunity to liquidate their assets and explore potential good buys in prime areas within Kuala Lumpur City Centre (KLCC).

"With the ringgit depreciating by almost 20% since the end of last year, I would like to encourage Malaysian owners of foreign properties to consider channelling back their investments to Malaysia, as the property price of Kuala Lumpur areas are relatively low compared with other cities in the region, such as Jakarta, Singapore and Bangkok," he added.

According to Wahid, more Malaysians are buying properties overseas, and they have invested up to RM5.5 billion in overseas property.


New Source: The Edge Property, 30 October 2015. Original report can be viewed HERE.

Rate this item
(1 Vote)


  • ThomasDar
    ThomasDar Sunday, 13 August 2017 00:16 Comment Link

    harrahs casino online gambling
    online roulette best bonus
    best blackjack software
    online roulette site
    online casinos new york

  • MartinMax
    MartinMax Saturday, 12 August 2017 02:56 Comment Link

    viagra prices cvs
    viagra coupon
    generico viagra tem mesmo efeito
    viagra coupons 2017
    gimonte sildenafil 50 mg

  • Logangog
    Logangog Friday, 11 August 2017 18:24 Comment Link

    buy cialis in uk
    generic cialis online
    buy generic cialis generic cialis
    generic cialis online
    buy cialis viagra

  • Stantondiara
    Stantondiara Friday, 04 August 2017 23:15 Comment Link

    wholesale cialis pills
    cheapest 20 mg cialis
    cialis canada buy
    tadalafil 20 mg
    how to order cialis

  • Bookerutest
    Bookerutest Sunday, 23 July 2017 08:07 Comment Link

    viagra 50mg versus 100mg
    viagra coupon
    viagra sale cheap
    viagra pills
    buying viagra chemist uk

  • JosephSmusa
    JosephSmusa Saturday, 22 July 2017 14:00 Comment Link

    pharmacy has cheapest cialis
    cialis cheap
    cheapest cialis 10mg
    online cialis
    cheap cialis with no prescription

  • cheap viagra canadian pharmacies
    cheap viagra canadian pharmacies Wednesday, 19 July 2017 04:36 Comment Link

    unterschied zwischen viagra 50 mg und 100 mg
    viagra 50mg vs 100mg
    viagra 100mg not working
    efeito colateral generico viagra
    viagra dose 200 mg

  • cheap viagra paypal
    cheap viagra paypal Tuesday, 18 July 2017 06:27 Comment Link

    will 25mg of viagra do anything
    price comparison levitra cialis viagra
    get viagra in canada
    cheap viagra in nz
    can take 2 50mg viagra once

  • top 5 online casino games Tem
    top 5 online casino games Tem Saturday, 08 July 2017 19:31 Comment Link

    online casino op iphone
    casino casino machine online online slot
    casino money
    casino virtual linea

  • Davidskind
    Davidskind Wednesday, 05 July 2017 23:47 Comment Link

    Online Drugstores
    online pharmacies that do not require a prescription
    online pharmacy
    canadian online pharmacy
    cvs online pharmacy


Leave a comment

Make sure you enter all the required information, indicated by an asterisk (*). HTML code is not allowed.


At PTLM, everything we do is with integrity, commitment and innovation as to facilitate information dissemination so that you could make well-informed decision.


Subscribe With Us

Invalid Input

Most Popular

Recent News

Our Gallery