Gerakan vice-president Datuk Mah Siew Keong has welcomed Bank Negara’s announcement that there was no plan to implement the proposal to limit home loan to 80%, saying it is a correct and rationale step.

Mah said Bank Negara should hold more consultations with those in the property market, construction industry, house buyers groups, consumer associations, and other stakeholders to discuss the subject thoroughly.

Mah, who is also the party’s chairman of Economic Development Bureau, recalled that last week, he had objected to the proposal when it was mooted, with the view, if the proposed housing loan cap were to apply across the board, it would not only slow down the property market, construction industry, housing and real estate industry and other related sectors as well as overall economic growth, but would also cause hardship to low income group people from affording a shelter.

He has also 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 and the lower income group in owning a decent shelter. Hence, he proposed that the present measure should be retained to assist the lower income group.

Mah said Gerakan is of the view that any preemptive measure taken by Bank Negara should not cause additional financial burden to the people, especially those from the middle or lower income group, from owning a decent and affordable shelter.

Deputy Finance Minister Datuk Donald Lim Siang Chai said on Tuesday that the Government would not rush into a decision on the proposal.

He said the Government would collect more views and suggestions from various groups on the proposal, which was floated by Bank Negara as a way to curb excessive speculation on property prices.