KUALA LUMPUR – Putrajaya should implement a special moratorium on loan repayments for small and medium enterprises (SMEs) following the overnight policy rate (OPR) hike, National Recovery Council chairman Tan Sri Muhyiddin Yassin said.
The sector needs the moratorium as it has not fully recovered from the impact of the Covid-19 pandemic on the economy, he said in a statement on Facebook today.
“Added to this, the increased OPR rate will cause SME entrepreneurs to bear a higher debt burden and take a longer time to recover.
“The SME sector is important as it represents almost 96% of the country’s economic activities. Many citizens depend on this sector for employment and income. Some 50% of Malaysia’s workforce is in this sector,” the former prime minister said.
Muhyiddin said he had made this suggestion to the government.
Yesterday, he had urged banks to consider offering moratoriums to SMEs.
He said banks would not suffer any losses, as seen from the previous moratoriums offered during the pandemic.
“So there is nothing wrong for the government to again talk to financial institutions to introduce a special moratorium this time,” he added.
Bank Negara Malaysia raised the OPR last Thursday by 25 basis points to 2.50%. Correspondingly, the highest and lowest corridor rates for the OPR are now 2.75% and 2.25%, respectively.
It was the third such increase this year after hikes in May and July. – The Vibes, September 11, 2022
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