Finance Ministry: FundMyHome NOT a monopoly

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I have been speaking to a number of property people in the industry. The question most of us have is when will there be other FundMyHome kind of initiatives by other companies. Currently we have just one which was officially launched by Finance Minister Lim Guan Eng two days after he gave his first Budget speech; Budget 2019. If it’s going to be something that will help the home buyers to own their first home, of course the more of these the merrier and the better it will be. A monopoly is never a good idea regardless of the country, especially in the new Malaysia of today. Well, we have our answers today.

Article in FreeMalaysiaToday.com.  Finance Minister’s political secretary Tony Pua said that the peer-to-peer crowdfunding platform, FundMyHome is NOT a monopoly. He said, that Securities Commission (SC) will regulate the initiative as more exchange platforms will come in. He also shared that the main aspect of the scheme is to protect both house buyers and investors. After the rules are finalised in the first quarter of 2019, then the first exchange can take place. He however said that there were risks such as the initiative contributing to a property bubble but this was being looked into.

He shared that the reason behind the speedy launch of the FundMyHome scheme, operated by EdgeProp Sdn Bhd, was because the company was the one that had come up with the idea. He said, “They (EdgeProp) were the ones who came up with the idea. Let’s not deny it. They came up with the innovation and they launched it because they wanted to publicise the mechanism.” Pua added that the platform would transform the entire lanscape of Malaysia if it worked. He said, “It’s a very innovative idea. Does it work? Is it 100% workable? I think it’s 95% workable as there’s still 5% risk there. So should we be conservative or do we try and do a pilot project? We get the SC to come up with the guidelines, protect the buyers, protect the investors and see how it goes.” Here’s that article in FreeMalaysiaToday.com for reference. 

Since the Finance Ministry has already explained, I think we can be assured that there will be many more choices from other companies and it need not be just the only one which has been launched currently. Currently, it will definitely be good for the Securities Commission to look through all the aspects of the P2P financing. Courtesy reminder, the risk assessment must not be confined to just the 20% owner but should also be seen in the context of the whole market. As much as I would welcome any new measure which help potential buyers own their first home, I would not want a property market full of buyers who were those who could not qualify for a loan in the first place. That should not be the aim of this P2P scheme anyway. Happy waiting for the SC’s full set of guidelines.

written on 10 Nov 2018

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