Fomca supports NUBE's interest-free housing loan proposal

PETALING JAYA: The Federation of Malaysian Consumers Associations (Fomca) supports the National Union of Bank Employees'(NUBE) proposal of interest-free housing loans for its members in the middle- and lower-income groups.
Fomca's Deputy President, Mohd Yusof Abdul Rahman, told Bernama today the banking industry should consider this as its corporate social responsibility and provide such facilities to the workers.
He said this will also spur and motivate the workers to work harder and increase their productivity which in turn will benefit the banks.
Mohd Yusof said housing loan repayment was a major component of the workers' monthly expenses and if this could be reduced it will go a long way to help them.
The NUBE submitted this proposal to the Association of Banks in Malaysia through the Malayan Commercial Bank Association recently.
It also wanted the banks to provide full loans for houses costing between RM300,000 and RM500,000, as well as absorb the legal and other fees.
Mohd Yusof also suggested that other private sector employers should also consider such schemes for their workers.
"If they could not provide interest-free housing loans, they should at least subsidise them like what the government is doing for its 1.6 million employees," he said.
The government employees pay four percent in interest for their housing loans.
The the Malaysian Trades Union Congress, which represented over 500,000 private and public sector employees, also supported the proposals. — Bernama