The loan distribution ratio between Sabah and Kuala Lumpur is a disadvantage to the buyers and developers in Sabah, says Chew Sang Hai, President of the Sabah Housing and Real Estate Developers Association (SHAREDA).

The banks' housing loan approval highly determine the rate of home ownership in Malaysia. Simultaneously, a high percentage of approvals for developers will also help the development of the surrounding area. SHAREDA emphasized this fact during their Annual General Meeting press conference on 23 March 2019.

Taking the latest campaign as a reference, SHAREDA tabulated a survey that reported the sales between the Home Ownership Campaign Expo 2019 (HOCE) held in Kota Kinabalu and the Malaysia Property Expo 2019 (MAPEX) held in KLCC. The result is as shown below:

Sales Survey for HOCE vs MAPEX

Expo Name = Total Units Sold (% of total combined) , Total Sales Value (% of total combined)

HOCE 2019 = 25% , 25% MAPEX 2019 = 75% , 75%

"The sales difference between HOCE and MAPEX held earlier this March is significantly huge," "However, we cannot compare this on face value alone, after looking at the imbalance of loan distribution in Malaysia." Chew Sang Hai, President of SHAREDA commented.

Loan Distribution for Sabah vs Kuala Lumpur

State Name = Loan Distribution (Ratio)

Sabah = 1 Kuala Lumpur = 20

Chew talked about his intention to appeal to Bank Negara Malaysia (BNM). He hopes that they will kindly take a second look at the loan distribution imbalance in Malaysia. "I hope they will increase the loan value for Sabah as it will help the state regional development." Chew added.

Explaining his aspiration for Sabah's development progression, he mentioned that it will be wonderful if banks establish their Regional Risk Committee for Sabah's property market, "The existing Regional Risk Committee for each bank are all in the peninsular of Malaysia," Chew said.

He explained that it will be better to have officers who understands the property scene in Sabah to manage loan applications from developers and homebuyers. Additionally, it will help to shorten the processing time for all loans unlike the existing system. Currently, all banks Risk Regional Committee headquarters in the peninsular of Malaysia, are processing applications nationwide.