Aug
30

Government to re-allow DIBS?

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The government is open to lifting the ban on the Developer Interest Bearing Scheme (DIBS) in the housing market ifthere are compelling reasons, according to the Urban Wellbeing, Housing and Local Government Ministry.

“There are some suggestions made by the industry, we will look into it. There are pros and cons, there’s no hard and fast rule on this. If it is not abused, it’s a tool for everybody to sell their houses and to make it more affordable for the people,” said its Minister Datuk Abdul Rahman Dahlan.

The housing ministry will look into this on case-by-case basis, he told the media at the 17th National Housing & Property Summit held yesterday.

“If there are some indicators that DIBS can reintroduced we have no problem with it but the most important thing is we must be flexible and nimble,” he added.

But Chang Kim Loong, Secretary-general of the National House Buyers Association, stands firm on his belief that DIBS should be permanently banned as it promotes speculation.

“In the event of an economic downturn, banks saddled with too much DIBS end-financing could collapse as the losses from such DIBS end-financing will erode the banks’ capital,” he added.

On the other hand, MKH Bhd’s Group Managing Director Tan Sri Eddy Chen is hopeful that DIBS will be reintroduced but with limitations to prevent abuses.

Notably, Prime Minister Najib outlawed DIBS during his Budget 2014 announcement. However, some property players suggested that first-time home buyers should be allowed to participate in this scheme.