Estate Workers Home Financing Scheme to be reviewed

KUALA LUMPUR: The Ministry of Human Resources (KSM), through the Peninsular Malaysia Department of Labour, is reviewing the conditions of the Special Estate Workers Home Financing Scheme (SKRE) to enable more estate workers to become eligible for the facility.

Its Deputy Minister Datuk Mustapha Sakmud (pix) said the financing scheme, with a revolving fund of RM50 million, was first introduced in the 10th Malaysia Plan but only 319 workers have taken up loans with a total funding of RM26.4 million as of Aug 31 this year.

“Several constraints have been identified that have prevented workers from participating in the scheme, such as the lack of low-cost housing and locations of housing projects being far from their workplace.

“In addition, their lack of financial capacity also results in their applications being rejected,” he said, answering a supplementary question by Rodiah Ismail (PH-Ampang) regarding the response by the target group on the scheme, during the question and answer session in Parliament today.

Mustapha said the scheme offers a very low fixed interest rate of two percent with a maximum loan tenure of 35 years, compared to commercial banks.

He added that the scheme also allows financing for the second generation, buying new and sub-sale houses, and building their own houses. -Bernama