KUALA LUMPUR, 3 APRIL: The concept of a long-term rental of accommodation is just one of the many ideas that many Malaysians can consider for family housing, said Second Finance Minister Datuk Seri Johari Abdul Ghani. He said he had been wrongly portrayed as urging Malaysians not to purchase houses, but encouraging them to continue renting instead, in a short video by an online portal.
“I was merely throwing up the idea of renting houses or accommodation by Malaysians until such time that they were in a position to commit to such a big financial responsibility,” he said in a statement today.
Johari said at the end of the day, Malaysians should evaluate their own lifestyle to see what work bests to be part of the progress of the nation.
“As for the government, we will continue encouraging developers to build more affordable houses and embark on a rent to own concept,” he added.
He also clarified that there is no stigma to renting family accommodation throughout a person’s life, instead of being burdened with financial-repayment responsibilities of home ownership.
It is the culture amongst Malaysians that upon entering the workforce, to commit themselves to two big financial burdens, namely the purchase of a car and a house.
“Whilst the financial commitment for the car may last up to nine years, that for a house can stretch up to 30 years.
“Thus, Malaysians tie themselves up to such a financial burden at an early stage of their lives, when they should actually and ideally concentrate on developing careers instead,” Johari said.
He quoted examples from advanced economies as European countries, where the percentage of house ownership is much lower than in Malaysia, as the cultural mindset is different.
In Germany, the percentage of the population being house owners is at 41 per cent, whereas in Switzerland it is lower at 38 per cent.
“If we are to proceed to live up to the aspirations of TN50, we need, as part of the process, to change our outlook on life and the way we do things in the country,” he added.