Gerakan vice-president Datuk Mah Siew Keong cautioned today that Bank Negara’s proposal to limit home loan to 80%, if applied across the board, would slow down the property market, construction industry, housing and real estate industry and other related sectors as well as overall economic growth.

Mah, who is also the party’s chairman of Economic Development Bureau, urged Bank Negara to study the plan carefully, as the present limit of home loan of 90% had helped the growth of the housing and real estate industry.

‘While averting the risk of a potential property bubble is important, Gerakan is of the view any preemptive measures taken must not and should not further burden the ordinary rakyat, especially those from the middle or lower income groups, from owning a decent and affordable shelter, ” he said in a statement.

Mah further argued that whatever preemptive steps taken, the overall impact on the Rakyat, the lower income group in particular as well as the economic growth must be rigorously studied. .

Mah was commenting on a report that Bank Negara had proposed to limit home loan to 80%. However, Bank Negara did not explain the rationale behind the proposal.