This article first appeared in The Edge Financial Daily on November 5, 2018

SEMENYIH: Finance Minister Lim Guan Eng said yesterday the government will engage with stakeholders like the National House Buyers Association (HBA) before implementing the peer-to-peer (P2P) home financing exchange platforms.

He said it is normal for such property crowdfunding platforms to meet with scepticism as they are something new. “But if successful, this financial innovation will be the first in the world.”

“It is good for [the] HBA to say something about it and not just accept the whole idea based on two paragraphs of words from the Budget 2019 speech. We will have a dialogue with stakeholders like HBA to explain what it is about,” he told a press conference after the launch of an innovative property portal called FundMyHome.com by EdgeProp Sdn Bhd here yesterday.

“So far, we have done the due diligence with Bank Negara Malaysia and the Securities Commission Malaysia (SC) and there has been no objection. But we need to look into the details because (if) it is an exchange, there will be some safeguards,” he said.

When tabling the Budget 2019 last Friday, Guan Eng said the government will be approving private sector-driven property crowdfunding platforms, which will serve as an alternative source of financing for first-time homebuyers.

Guan Eng said these exchange platforms will be regulated by the SC under the P2P financing framework.

On Saturday, HBA said it “respectfully disagrees” with the initiative, expressing concern that it will encourage the growth of more property speculation and bad debts.