Cagamas signs MoC with JHF to strengthen housing finance

Last update: 10/10/2019

KUALA LUMPUR, Oct 10 -- Cagamas Bhd (Cagamas) and Japan Housing Finance Agency (JHF) have signed a memorandum of cooperation (MoC) to strengthen the cooperative relationship for development of housing finance in both countries.

Cagamas president and chief executive officer Datuk Chung Chee Leong said the collaboration is among efforts to deepen regional collaborations, particularly in developing green housing financial products.

“This can benefit Malaysians by promoting sustainable development and addressing climate change. It will also serve to reinforce greater global cooperation of our institutions in line with our mandate to develop the secondary mortgage finance market,”  he said in a statement today.

The MoC was signed between Chung and his Japanese counterpart, JHF Incorporated Administrative Agency President, Toshio Kato.

Meanwhile, Kato said with the knowledge and experience shared between JHF and Cagamas, he hoped to provide better housing financial services to both the Japanese and Malaysian people and contribute to the wellness and prosperity of communities within the two countries.

“The MoC will enable the wealth of domestic experience in housing finance, mortgage and financial instruments to be mutually exchanged between Malaysia and Japan," he said. 

He added that the collaboration is expected to enhance stability of housing and mortgage markets, particularly in the areas of green housing, mortgage backed securities, as well as other funding instruments to leverage on private capital for the housing market.

Cagamas is the second largest issuer of debt instruments after the Malaysian government and the largest issuer of AAA corporate bonds and sukuk in the market, while JHF is the sole Japanese government- owned housing loan arm.