The corporation would provide guarantees to buyers to guarantee compensation in situations where housing projects are abandoned. (image: Phalinn Ooi/flickr)
SEOUL, Feb. 17 (Korea Bizwire) – The Malaysian government is planning to set up a housing guarantee corporation to protect buyers, and is considering the introduction of a Korean style housing guarantee system.
The Korean Housing Guarantee Corporation (KHGC) announced that it recently held a meeting with Malaysian officials from the Ministry of Urban Wellbeing, Housing and Local Government including its minister Datuk Abdul Rahman Dahlan at Putrajaya.
At the meeting, Malaysian delegates shared their intention to set up a guarantee institution in Malaysia similar to the KHGC, and asked for cooperation related to its operation, from the foundation process to business strategies.
Like Korea, the Malaysian housing market is based on an advanced purchase system, in which buyers pay in advance before the completion of construction work. However, without a guarantee system, buyers’ property rights are damaged when housing projects are abandoned.
The Malaysian housing guarantee corporation would operate under the supervision of the government, which would hold 70 percent equity with the remaining 30 per cent being held by the private sector. The corporation would provide guarantees to buyers to guarantee compensation in situations where housing projects are abandoned.
A KHGC official said, “The introduction of Korea’s advanced housing guarantee system can help create a stable housing policy in Malaysia, addressing the housing issue following its rapidly growing economy. It will contribute to the mutual relationship of Korea and Malaysia.”
By John Choi (johnchoi@koreabizwire.com)
