Supply ‘mismatch’ in housing market

KUALA LUMPUR: Bank Negara Malaysia (BNM) deputy governor, Dr Sukhdave Singh (pic), said the candidate to replace Governor Tan Sri Dr Zeti Akhtar Aziz, either internal or external, should be capable and have the credibility to lead the institution.

“The Government will make the decision on the matter,” he said in a four-paragraph statement on Thursday.

Sukhdave said he was aware that the BNM Governance Committee had made a recommendation to the Government in this matter.

“I am not privy to the recommendation,” he said.

The statement was issued to clarify the comments he made earlier on the issue of Zeti’s successor, whose current term ends on April 30, at the Malaysian Economic Association’s panel discussion on the Malaysian economy in Kuala Lumpur on Thursday.

Speaking at a conference organised by the association earlier in the day, Sukhdave said Malaysia could emulate other countries, such as South Korea and Singapore, to build more affordable houses for the lower- and middle-income groups.

He said in these countries, the public and the private sectors joined hands in providing affordable housing.

“The housing community needs to adjust to the trends and the government is definitely playing a role in trying to create the supply,” he told reporters at the conference.

He said there was a mismatch in housing supply whereby most houses that were coming into the market were at the higher-end.

However, there was a lot of demand for affordable homes, he said.

BNM, in its 2015 annual report released on Wednesday, estimated that 202,571 new homes were needed each year from 2016 to 2020, about 2.5 times the number of residential units constructed annually in the past five years.

It also suggested that the many affordable housing developers in the country should be consolidated and the Government should also look into the residential rental market as well. – Bernama.


Source: The Star Online