James Kon
Ministers urged the public to look through details of any agreement before signing so disputes will not arise when addressing the issue of using land as a form of collateral without being made aware of risks.
During yesterday’s 19th Legislative Council (LegCo) session, LegCo member Yang Berhormat Salleh bin Haji Othman raised the issue of land owners using their property as collateral for financing without being made aware of risks, as well as a seemingly lack of protection for their rights.
Minister at the Prime Minister’s Office and Minister of Defence II Yang Berhormat Pehin Datu Lailaraja Major General (Rtd) Dato Paduka Seri Haji Awang Halbi bin Haji Mohd Yussof in his reply said that consumers’ rights are looked after through existing laws, and means of dispute resolution between conflicting parties are provided through institutions or processes.
“It is important that the public to understand the details of any agreement before signing so that dispute will not arise,” said the minister.
Minister at the Prime Minister’s Office and Minister of Finance and Economy II Yang Berhormat Dato Seri Setia Dr Awang Haji Mohd Amin Liew bin Abdullah said, “On the issue of land being use as collateral, it is a personal agreement for investing into projects of construction of one’s own house. 
“If the land is used as collateral and there is no repayment, it is a matter between the financial institution and the concerned individual.”
The minister urged the public to gain more financial literacy, adding that the Brunei Darussalam Central Bank frequently shares information on financial literacy through talks so that the public will gain a better understanding before entering any agreement, including mortgaging land as collateral.
Meanwhile, Minister of Development Yang Berhormat Dato Seri Setia Awang Haji Muhammad Juanda bin Haji Abdul Rashid said the government is aware, and is paying close attention to the matter. “The process for personal land to be mortgaged is subject to prior approval by the Land Department under the Ministry of Development.
“Personal land to be used as collateral will be identified for consideration.
“If the individual needs to use the land as a collateral as a loan to build a home on the land itself, the application will always be approved,” said the minister.
“However if it is to be used to get financing without any reason, and if the land is their only property, then this will not be allowed.”
