KUALA LUMPUR (Oct 11): Bank Negara Malaysia said developing broader home ownership alternatives, including a well-functioning rental market, was deemed a policy priority to protect homebuyers from financial hardship. In a statement today, Bank Negara said the suggested need for alternatives showed the adverse consequences poorly designed incentives to increase home ownership could have on housing affordability in the longer term. "Factors that influenced the efficiency with which house prices were adjusted were also examined," Bank Negara said. Bank Negara issued the statement in conjunction with the central bank's fourth economics research workshop yesterday. "Policy measures to ensure access to credit must therefore be pursued with concern for the protection of homebuyers from financial hardship leading to foreclosure and poorer welfare," Bank Negara said.

Source: The Edge Markets October 11, 2016 03:56 UTC