Should developers become financiers?
It was announced that property developers can apply for the licensed money lender permit that will allow them to provide loans to their buyers by the Minister for Urban Development. The rate is supposedly capped at 12%. About a couple of days after that, the 2nd Finance Minister came out to say that the idea is not feasible as there are many risks and costs to all parties concerned. Today, it was reported that this matter was not even discussed in Cabinet yet, so why did Noh Omar announce the money lending permit in the 1st place? So let's break it down a little bit: Technically, there is nothing wrong with a developer applying for a money lender license. It's just whether they want to or not. The government is implementing the Rent to Own concept. The 2 ministers are cornering the developers by first offering them the poison chalice of the lending licence then taking it away. The developers are now put in the position of: If they take the lending license, th