Online System For Unclaimed Money To Be Up Next Year

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Making decisions could be very critical at each stage. Do not make hasty decisions because it may land you inside a bigger trouble. You‘ll lose all of your money. Think, research, and analyze, after which have a move. Buying and selling CFD could seem very simple and straightforward. It‘s recommended to not jump in it immediately. Review your finances and analyze if you can bear the loss in case you face any. As said earlier, one needs to attain a strong basic knowledge of the topic and become very cautious simultaneously.



A system to enable people to access and check the status of their unclaimed money online will be activated in the second quarter of next year.

The government is currently the custodian of a whopping RM5.96bil in unclaimed money as of October 31. Out of which 70% is from banking transactions, which includes money kept in savings and current accounts, as well as fixed deposits. Another 18% is from insurance accounts and the balance 12% constitutes other forms of accounts such as trade accounts.

According to Deputy Finance Minister Datuk Othman Aziz, this year alone, the department had received 50,015 applications. Of these, 34,353 applications were from around Kuala Lumpur.

Othman said the system is expected to be activated in the second quarter of next year. The Accountant General’s Department, which manages unclaimed money, will also join the Mobile CTC (community transformation centre) programme organised by the Finance Ministry.

This to allow more people, especially those in rural areas, to check and claim what is theirs.

he government has been focusing on providing affordable housing in the recent years. The recent Budget 2018 gave the housing sector an allocation of RM2.2 billion, with over 50,000 units being prepared under the affordable housing programme and more financing programmes such as PR1MA to help Malaysian citizens afford their first homes.

Amongst all of these announcements on housing, this year private developers seem to finally be getting a slice of the affordable housing pie. The popular PR1MA end-financing scheme is now extended to eligible private developers to help more Malaysians in purchasing their first homes.

With private developers being part of the plan, it seems likely that more Malaysians will be able to afford a house at key areas. But are there private developers offering affordable housing?

To answer that, we first need to know what exactly defines affordable housing.

What is considered affordable housing today?
According to research by the Khazanah Research Institute (KRI), the threshold for affordable housing is one where the cost of the house is three times the median income, called the Median Multiple.

This calculation defines that if a household can finance the house with less than three times its annual median household income, the house is considered affordable. Anything higher than that, it’s considered unaffordable.

This calculation has even been supported by  Deputy Minister of Finance, Datuk Othman Aziz, and has also been recommended by the World Bank and the United Nations for the evaluation of urban housing markets.

According to the Department of Statistics Malaysia (DOSM), the current median income is at RM5,228 as of 2016. Using the Median Multiple calculation, Malaysia’s overall affordable housing price is at RM188,208.

However, as different states record different incomes, the affordable housing price should also differ according to states. Here are the seven states with the highest median income in Malaysia according DOSM, and how much the affordable housing price should be for each state.

State
Median Income
Affordable Housing Rate
Wilayah Persekutuan Kuala Lumpur
RM9,073
RM326,628
Wilayah Persekutuan Putrajaya
RM8,275
RM297,900
Selangor
RM7,225
RM260,100
Wilayah Persekutuan Labuan
RM5,928
RM213,408
Johor
RM5,652
RM202,500
Melaka
RM5,588
RM201,168
Penang
RM5,409
RM194,724
Out of these seven states, only six states can afford housing that is above RM200,000. If you live in the Klang Valley, you would notice that most of the developments by private developers are way above that price tag. Even PR1MA houses within the Klang Valley are priced above RM200,000.

This begs the question of what the “eligibility criteria” set for private developers for the end-financing scheme are. At the time of writing, no details have been released by the government on this scheme, but let’s look at which private developer are already stepping up their game in offering affordable housing, even before the Budget has been announced.

1. Berjaya Land Development
Who is eligible?

Cost of house From RM150,000
Income Not more than RM8,000 per month
Age 21 and above
Other requirements Malaysian resident, registered voter in Penang
Berjaya Land announced early last year that they would be providing affordable housing, especially in Penang. They have a number of projects in Penang currently, particularly at the Jesselton Villas near the Penang Turf Club.

Their affordable housing in Mutiara Jesselton, Penang starts from from RM150,000, which seems to be the most affordable housing you could find in Penang thus far.

However, their other ‘affordable properties’ are mainly around the range of RM300,000, which is far from affordable for most of the residents in Penang.

In order to be eligible for these affordable property in Penang, you will need to be a Malaysian citizen and a registered voter in Penang with an income of RM8,000 per month or below. Both the applicant or even the spouse must not own any property anywhere in Malaysia.

2. IJM Land
Who is eligible?

Cost of house From RM245,000
Income TBA
Age TBA
Other requirements TBA
Recently, Federal Territories Minister Datuk Seri Tengku Adnan Mansor announced that Amona Development Sdn Bhd and IJM Land Bhd had jointly agreed to lower the price of houses in Pantai Sentral Park to RM245,000 from its original price of just below RM300,000. Further information on this development has yet to be released. The completion is expected to be 18 months from the end of October 2016. More details on this should be released in 2018.

A quick look around the property prices around Pantai Sentral Park shows prices of around RM700,000 – RM800,000! With its prime location close to the heart of Kuala Lumpur, the price of RM245,000 is pretty attractive, and it is still below the affordable housing threshold for Kuala Lumpur residents.

3. Sime Darby
Who is eligible?

Cost of house From RM170,000 to RM270,000
Income Between RM3,000 to RM10,000 monthly
Age 18 and above
Other requirements Must be first home
There are a number of private property developers that participated in the Rumah Selangorku programme that promises to offer affordable housing within Selangor, and Sime Darby is one of them. Sime Darby is currently offering 1,700 units of apartments with prices ranging from RM170,000 to RM270,000 with their second Rumah Selangorku project, Harmoni 1, located in Putra Heights, Subang in Selangor.

Other projects under the Rumah Selangorku programme by IJM Land include the Serunai Apartment at Bukit Raja, and Harmoni, City of Elmina with houses ranging from RM200,000 to RM250,000 which are still within the affordable property price in Selangor.

4. SP Setia
Who is eligible?

Cost of house From RM170,000
Income Between RM3,000 to RM10,000 monthly
Age 18 and above
Other requirements Must be first home
SP Setia is one of the developers that are also under the Rumah Selangorku programme, which means most of their affordable housing is based in Selangor.

Their current project is based in Setia Alam and it comprises of 737 units at the De Kiara apartment and 730 units at De Palma apartment with built-ups of approximately 800 square feet and the units are priced at RM170,000. They also have 723 units with a built-up of approximately 900 square feet at De Bayu apartment that’s priced at RM200,000.

The developer also has Setia Eco Templer, which has also built approximately 900 affordable housing units that were priced from RM42,000 to RM250,000.

5. Mah Sing Group
Who is eligible?

Cost of house From RM170,000
Income Between RM3,000 to RM10,000 monthly
Age 18 and above
Other requirements Must be first home
Another developer under the Rumah Selangorku project, Mah Sing is also offering affordable housing that’s gated in Rawang. Currently with 488 units, the Cendana Apartment homes have a built-up area of 850 square feet each with a starting price of RM170,000.

Their future projects on affordable housing will also focus on other states such as Penang and Johor as well, though they have yet to be announced. Mah Sing also has plans to launch M Centura in Sentul, Kuala Lumpur which boasts high quality affordable housing with a price tag of RM328,000. This is slightly higher than the affordable housing meant for KL residents, but the developer justifies the price tag by promising quality.

Can Malaysians get these affordable homes?
Of the five property developers listed above, most of them have worked under the Rumah Selangorku programme to provide more affordable housing for Selangor residents. As Selangor’s compound annual growth rate (CAGR) in property is double that of Kuala Lumpur’s at 26.8%, this means prices of property has been going up a lot faster than most residents of Selangor can afford.

On the other hand, Penang’s CAGR is a lot lower compared to most states at 1.8%, but the median price of property in Penang is already in the millions, which is also another issue that would raise the demand for affordable property.

Despite more participation from private developers, the demand for affordable housing is still way above the supply. Most of the developments mentioned above are either unavailable at this point or there’s a long waiting list with little to no certainty of getting said unit.

This has also been criticised by Wong Chen, Kelana Jaya MP, who said during iMoney’s pre-budget live forum that it is close to impossible for the government to provide affordable housing such as PR1MA to everyone.

“Assuming we can build 10,000 houses a year, it can only serve 1% of those who need. This creates the ‘lucky draw’ mentality which encourages corruption,” said Wong.



The current system is definitely far from perfect, but the problem is not insoluble. So what else can be done to solve the issue of affordable housing? The KRI had recommended improvements to the current construction industry’s delivery system to supply affordable housing, reduction of pressure that leads to rapid house price escalation, as well as a steady supply of housing at affordable prices to match the demand efficiently.

However, the issue of affordable housing will not be solved overnight, and it cannot be solved by the government alone. More effort needs to be put in to make owning a home more affordable, and there’s hope that more private developers will play their part in contributing to the solution.

The balance of an account, which has been dormant or inactive for more than seven years, will be deemed unclaimed money, said Deputy Finance Minister II Datuk Lee Chee Leong.

This is in accordance to the definition under Section 8 of the Unclaimed Moneys Act 1965. The unclaimed money will be surrendered to the Registrar of Unclaimed Money under the Accountant-General’s Department in a consolidated trust account.

As of June, there was a total of 55 million records since 1977, amounting to RM5.779 billion of unclaimed money.

This includes savings accounts, current accounts and matured fixed deposits with auto-renewal instructions.

“There are two other categories: firstly, money that is legally payable to the owner but has remained unpaid for more than a year such as salary, bonus, commission to staff, dividend, other payable accounts, other receivable accounts with credit balance, and matured fixed deposits without auto-renewal instructions,” Lee told The Star.

“Money to the credit of a trade account that has remained dormant for a period of more than two years such as trade payable accounts and other receivable accounts with credit balance are also considered unclaimed money.

“In simpler terms, unclaimed money is money that has failed to be given to its rightful owner.”

unclaimed money
Image from The Star

Unclaimed money will not have any addition or deduction from the original amount, as stated under Section 11(3) of Act. This means owners will not continue to earn interest on unclaimed money.

However, owners of the fund can check and claim the funds anytime, there is no expiry date to claiming the fund.

“So there is no need for the public to panic, as there is no rush.

“The Government is also developing an online system for checking and applying for refunds. It will be ready by next year,” he added.

The largest amount ever refunded to an individual was almost RM6 million from several accounts, while the smallest sum was 39 sen.

Companies that are bound by the Act must maintain records of unclaimed money, and the funds (if any) have to be submitted to the Registrar by March 31 each year.

These companies can face a fine of up to RM20,000 if they fail to comply, while for a repeated offence, a subsequent fine not exceeding RM1,000 for each day the offence continues.

The public should be careful to avoid their money being classified as unclaimed, he advised.

According to the 2015 Account General’s Department annual report, there were 1,719 unclaimed submissions with a total receipt of RM666.8 million that year, compared to 1,724 submissions amounting to RM512.9 million in 2014.

The Accountant-General is wholly responsible for the management of unclaimed money in the country.

As a trustee of the funds, the Registrar inspects company records to identify unclaimed money; manages submission of that money; and manages its return to the rightful owners.

For more information, visit www.anm.gov.my.


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