THE POOR, EPF AND THE DUMMIES IN PAKATAN RAKYAT

As promised, today i am writing the final chapter of my three (3) part series article titled "THE POOR, EPF AND THE DUMMIES IN PAKATAN RAKYAT". The previous two (2) articles has touched on the following items:

1. A brief history - talking about the PPR residents request and grouses. 

2. Objective - talking mainly about the objective of developing this scheme for the poor

3. Approach/ Process taken

4. Brief summary

Today, i would write about the following items:

1. Payment structure involving EPF, SPV, DBKL and future house owners. 

2. Benefit of this loan to the poor

3. Rebuttal to all allegations by Tony Pua and Nurul Izzah 

Payment Structure

There was a lot of rubbish being mentioned by the opposition, especially Tony Pua and Nurul Izzah, who condemned the government for using EPF fund to finance this scheme. Their main concern was why provide direct loans to the poor, when they can't even get a bank loan? To answer this question, please look at the diagram below. 

Flow diagram of loan from EPF to house buyers

From the diagram above, it can be clearly shown that the loan from EPF/KWSP goes to the SPV that will be created under Yayasan Wilayah. However i would explain in detail the diagram above in detail:

1. DBKL offers PPR residents the opportunity to purchase their current houses. 

2. Once they have agreed, DBKL would sign the S&P agreement with the SPV which subsequently sign an agreement with the house buyers. 

3. The house buyers pays their installment to the SPV, and the SPV pays it to EPF. 

4. The loan from EPF is guaranteed by DBKL. So it is secured. 

Benefit

Firstly, to purchase the PPR houses, the current residents do not need to put any downpayment. Compared to loan by financial institution, where a minimum of 10% downpayment is required. This in itself benefit the poor and helps to reduce their burden. 

Read more here.