LPPSA Secures RM1 Bln Financing From HSBC Amanah For Civil Servants’ Housing

KUALA LUMPUR, Nov 4 (Bernama) -- Public Sector Home Financing Board (LPPSA) has secured RM1 billion in funding from HSBC Amanah Malaysia Bhd to provide home financing specifically for civil servants.

In a joint statement today, LPPSA said the transaction marks a significant milestone as LPPSA’s inaugural alternative funding initiative, establishing a non-government guaranteed Islamic Receivables Finance (RF-i) facility.

“This initiative aligns with the government’s focus on enhancing access to home financing for civil servants while providing innovative alternative financing arrangements for government entities,” it said.

LPPSA chief executive officer (CEO) Farid Nawawi said the collaboration will enable LPPSA to play a vital role in helping nearly 1.6 million civil servants across all ranks to acquire home financing and fulfil their aspirations of homeownership.

“This will be achieved by ensuring they have access to the necessary resources to secure their future homes and will further strengthen our fiscal discipline as outlined under the Fiscal Responsibility Act,” he added.

HSBC Malaysia CEO Datuk Omar Siddiq said the solution showcases HSBC’s innovative capabilities and expertise in shariah-compliant transaction banking solutions, effectively addressing the needs of the public service sector.

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The statement added that the funding can contribute to effective debt management by optimising the government’s guarantee exposure.

“Moreover, by providing access to home financing for civil servants, this initiative profoundly impacts not only civil servants themselves but also the stability, efficiency, and equity of the nation, in line with the Malaysia MADANI framework,” it said.

-- BERNAMA