, and that they are able to pay for other obligations on top of this commitment. to this end, at the individual level, we need to put emphasis on the value of financial literacy and financial education. for example, the credit counseling and debt management agency recently launched the “ rumahku ” portal to help potential borrowers in malaysia to understand the financial commitments associated with owning a house. it also helps them to understand their capacity to meet these commitments. so far, more than 3600 people have completed the modules and a substantial number of them, one in five, have decided not to proceed with the purchase. this points to two things. firstly, the module is successful in nudging participants to reassess their existing financial obligations before they can take on more than what they can handle. secondly, it reinforces the need to continue pushing for financial education. individuals need to know their capacity, and what they can afford before undertaking a commitment of this magnitude. we have established that every individual needs to play their part to ensure that they are fully aware of and are able to undertake the commitment of buying a house. however, the responsibility does not reside with the buyers alone. industry players in the private sector also 1 / 3 bis central bankers'speeches have a role to play to support the national agenda of affordable homes. as one of the core players in the housing market, developers have a significant role to play. in providing the supply of homes for the public, developers should seek to provide homes at an affordable price point. using international affordability metrics, houses in malaysia are considered to be “ seriously unaffordable ” with a median multiple of five times. this, in turn, affects home ownership. take the latest data of unsold residential properties of about 171, 000 units. about 74 % of them are priced beyond what ordinary malaysians can afford. it is, therefore, imperative for developers to adjust their product offerings and consider bringing their costs down. one of the ways would be to seriously explore leveraging on more advanced and cost - efficient construction technology, such as industrialised building system ( ibs ). as cost of construction remains one of the major determinants of house prices, increasing efficiency and lowering costs can lead to a more inclusive housing market. beyond considerations for price points that reflect greater affordability for the buyer, developers also have the responsibility to build houses that cater to the modern needs of the public. aspects of quality, sufficient amenities and safety must

alone. adequate housing is about access, which can be achieved not only through outright ownership, but also through the ability to rent a decent home at affordable prices. the overriding policy priority should not be ownership at all costs. we need to learn from the global financial crisis on the importance of a sustainable housing market. 2 / 3 bis central bankers'speeches policymakers need to protect the interests of the public and the stability of the economic and financial system. it is also in the interest of the public that they do not buy homes that they cannot afford and fall into financial hardship, which will have detrimental consequences to socioeconomic stability. more broadly, we need to remember that one of the best ways to achieve the affordable homes objective is to promote employment opportunities and income growth for the people. this will strengthen their economic capability and financial position for home ownership. to some extent, we have observed some encouraging trends, including the fact that house prices are now growing more in line with income growth. another important avenue for policymakers is the exchange of information and ideas. through the sharing of experiences, especially with policymakers from other countries, we are able to learn and explore new frontiers. platforms such as this contribute to the rich marketplace of ideas that will spur us to think of innovative policies and effective ways to implement them. tackling the issue of affordable housing requires us to be creative, proactive and holistic in our solutions. this will require collaboration and commitment from all parties involved ; policymakers, the private sector, developers and the public at large. it will not be easy, but it is necessary for us to build a better future not just for our families, but for our future generations. 3 / 3 bis central bankers'speeches