Further clarification from Tong on Crowd Funding and the Budget

Today, my friend Datuk Kadir Jasin posted on his blog on the possibility of having a budget for the budget of the Budget FundMy Home Budget 2019 in Parliament.

This article was also submitted by YB Datuk Seri Najib Razak, to which I have commented on the social media as the Edge Financial Daily.

Rest assured I share the same concerns as every Malaysian on the sanctity and confidentiality of the Government's national budget. It is a highly confidential document, protected by the OSA.

I believe the misunderstanding comes about to legal complexities.

What the YB Minister of Finance is pleased to know is that the government is undergoing peer review of the peer-to-peer framework and the Securities Commission (SC) is entrusted with the task. YB Lim commented that the target is for the first time 2019.

Meanwhile, I assume the SC is reviewing the rules and regulations, investors' protection, possible mechanisms and so forth. P2P framework are issued.

SC compliments before licenses are issued.

The new Malaysia does not tolerate rent-seeking or monopolistic behavior and I am sure this will be the case as well.

What YAB Prime Minister launched last Sunday, 2 days after the Budget, is a digital property platform that does not require regulatory approvals.

It is NOT The same as what YB MOF mentioned in the Budget, but it is the intention of the Fundamentals of Climate Change, which is sometime in early 2019.

What is the difference?

The SC regulates investments by the public, with the aim of protecting the individual investors. Currently, FundMyHome does not solicit public investments, but is funded by institutions.

It is likely that I will be able to do so, and I will be more likely to do so, I suspect most will agree.

All innovations go through stages of perception; from "ridiculous" to "debate" and finally to "it was obvious".

In any case, given that FundMyHome involves no public money, concessions or guarantees of any kind of the Government, and that this is an additional possible solution over and above existing ones, what can be wrong?

For those who think they have better solutions, this launch and this innovation in no way impedes anyone else doing and proposing what they have in mind.

I hope you can be successful too. We all share the same objective, to help fellow Malaysians have a roof over their heads that they can afford.

In the end, there will probably be many solutions with each other.

The only real argument against FundMyHome is therefore the possible cost to the economy and society that may arise out of the implementation of this scheme.

I know there are none.
The various regulators will and must review this article. I want to ensure that it does not create more problems than it solves.

I am aware many think this creates a possible subprime crisis in future. I can not guarantee that you will not be able to do anything about it.

FundMyHome has the opposite effect – it uses debt (bank mortgage) by using equity (investors).