Home Business CUEPACS urges govt to take over lending facility from commercial banks

CUEPACS urges govt to take over lending facility from commercial banks

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KUALA LUMPUR, June 25 – Cuepacs has asked the government to take over the civil servant housing loan lending facility from commercial banks.

Its president, Datuk Omar Osman said this was due to concern expressed by Cuepacs members that the lending arrangement would burden borrowers.

“So we have decided that the lending facility should be managed by the Housing Loan Division.

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“We do not want the function to be given to commercial banks for we are worried that they might impose various charges,” he told Bernama after attending the inaugural annual general meeting of Koperasi Penjawat Awam 1Malaysia Berhad here today.

CuepacsThe motion, which was passed at the AGM, will be submitted to Prime Minister Najib Tun Razak and Chief Secretary to the Government Tan Sri Dr Ali Hamsa.

Under the 2013 Budget, the government decided to disburse housing loan for civil servants through commercial banks from January this year.

Omar said Cuepacs would also continue to urge the government to reduce the housing loan interest rate by one per cent to three per cent.

“In addition, we also want the government to raise the monthly housing allowance from RM180 to RM450 and harmonise the cost of living allowance (COLA) throughout the country at the rate of RM300 a month,” he said.

He said Cuepacs would also propose to the government to allow civil servants to withdraw 20 per cent of the gratuity at the age of 50 to enable them to finance their children’s tertiary education, repair their houses, repay housing loan and perform umrah (small haj),” he said.

Omar said Cuepacs would also ask the Public Service Department to conclude grade and salary revision for nearly 200 job categories in public service, mostly in support groups, by the end of the year.

– BERNAMA