PETALING JAYA (July 29, 2010): The MCA had discussed the idea of slashing bumiputra discounts for luxury homes even before it was raised by DAP’s PJ Utara MP Tony Pua last week.

MCA vice-president Datuk Chor Chee Heung, who is also Local Government and Housing Minister, said that MCA had opted not to bring it up in public until a proper study and consultation was made.

"We discussed the matter even before the Opposition, but unlike them, we just don't simply say anything that crosses our mind," Chor said, after officiating at the 13th National Housing and Property Summit at Sunway yesterday.

He said this in response to Pua's recent suggestion to the Selangor government to slash bumiputra discounts for luxury homes and commercial property in the state so that competitiveness can be improved and investor confidence restored.

"We have to look at the statistics and discuss the matter thoroughly, including getting feedback from the bumiputras themselves," Chor said.

"We must first know how the bumis find it, especially the rich bumis…and we must hear their grounds.

"But, it will be a good idea for the rich bumiputras to agree not to accept the 5% discount...and instead agree to channel it to help the poor Bumis.

Chor said an ideal situation will be akin to 'taking from rich to help the poor'.

He said this is because many bumiputras have yet to own houses and it will be ideal to help them.

"But there is no simplistic answer to this. We have to look into all aspects before talking on slashing the discount for luxury homes," said Chor.

Last week, Pua ruffled some feathers when he suggested that the 5% discount for bumiputra purchasers of luxury homes be abolished.

However, he said the 7% discounts enjoyed by Malays and other bumiputras should be retained for homes below RM500,000.

On another note, Chor said that there was no property bubble in the country as the demand and supply is matched properly.

"There is no fear of a property bubble here…we have not reached the stage yet and the mechanisms are right in place.

He also said that the Government was right on track constructing 78,000 low cost homes over the next five years as part of the initiatives to house some 95,000 squatter families.