Ramasamy: “PHEB endowments must be developed for the benefit of the Hindu community”
MEDIA STATEMENT
BY PROF. DR. P. RAMASAMY
CHAIRMAN, URIMAI PARTY &
FORMER DEPUTY CHIEF MINISTER II, PULAU PINANG
Idzham Mohd Hashim’s recent article (FMT) provides food for thought on how to render waqf land bankable as collateral. He says that thousands of acres of land belonging to Islamic waqf institutions are sitting idle because they offer no collateral value to banks for development, to the benefit of the public. Mention waqf lands, and both developers and banks are reluctant to use them as collateral.
Meanwhile, thousands of acres of land that can be turned into housing for the poor remain idle and non-bankable. The Hindus in Penang have waqf-like landholdings held in trust by the Penang Hindu Endowments Board (PHEB). The PHEB holds land, temples and properties classified as endowments in perpetuity, as they cannot be alienated. As with Islamic waqf lands, the lands owned by the PHEB cannot be alienated.
Since PHEB lands cannot be alienated, they are effectively placed beyond the boundaries of normal commercial transactions. Banks and other commercial institutions are reluctant to use them as collateral because of concerns relating to ownership transfer. However, I understand that PHEB-owned land can still be utilised by granting long-term leases to potential developers.
This was the idea behind the proposal to develop an affordable housing scheme for the Indian community in Butterworth, Penang. Developers’ reluctance was the main reason the PHEB land was not developed into an affordable housing project.
The PHEB possesses valuable land in different parts of Penang. Many of these parcels remain idle because the present management has no clear vision on how to develop them. There is a mechanical way of thinking that lands or endowments belonging to the PHEB cannot be developed at all.
Holding these properties in perpetuity, with no scope for development, cannot be regarded as a meaningful service to the Indian community. The PHEB continues to hold valuable land in perpetuity without any serious prospect of development or service to the Indian community.
As long as the land is leased, for example through 99-year lease arrangements, and provided banks are willing to finance the projects, the PHEB could be in a position to build affordable homes for the Indian community. This is something the present board members of the PHEB need to think seriously about if they want to play a meaningful role in improving the lives of the Indian community, the majority of whom are working class.
It serves little purpose to boast that the PHEB possesses endowments and properties worth millions of ringgit if these assets cannot be utilised for the benefit of the Hindu community.
It must be remembered that the PHEB is not merely a religious body but a statutory organisation that should give primacy to the socioeconomic development of the Hindu community.
While organising religious festivals is important, it should not be the PHEB’s primary focus. As the guardian of Hindu endowments, the PHEB must think critically and creatively about how to uplift the Hindu community in Penang.
Only by doing so can the PHEB become a model worth replicating in other states.
