KUALA LUMPUR – Opposition leader Datuk Seri Anwar Ibrahim has called out Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz over his pro-bank policies.
In his Budget 2021 debate, Anwar (PH-Port Dickson) said the Finance Ministry should extend or even cut down some interest rates, seeing as to how banks will still make a profit despite the economic slowdown triggered by the Covid-19 pandemic.
“Touching on the moratorium, the finance minister was a banker, but he must be pro-rakyat and not pro-bank.
“He has extended the B40’s moratorium for three months or reduced their monthly repayment (by 50%) for six months. We took note of that, and I thank him.
“But I think this is very limited. The finance minister is still thinking like a banker. He must think from the borrowers’ perspective, too.
“I know it’s hard for him to think like a borrower – there must be more empathy.”
He added that banks are expected to make roughly RM30 billion in revenue for the financial year 2020, and it is not hard for them to take a RM2 billion hit by reducing the interest rates for borrowers.
Anwar said the banking industry recorded pre-tax profits of RM8.5 billion in the first quarter (Q1) and RM9.3 billion in Q2.
“Can’t we give them (borrowers) lower interest rates? Bank revenue (this year) still stands at RM30 billion, but there are people who are jobless and do not have enough to eat. Banks don’t have this problem.
“Right now, the B40 group, and even the M40, are struggling. In a short span of time, many in the M40 group have been reduced to B40, while others are still struggling.
“The (loan) moratorium should be expanded. Don’t burden the lower-income group. Banks should also face some pressure and cut down interest rates, so that lower-income borrowers will not be so burdened. Banks can take the hit and reduce its revenue from RM30 billion to RM28 billion.”
Datuk Seri Saifuddin Nasution Ismail (PH-Kulim Bandar Baharu) asked Anwar, his party president, to comment on Tengku Zafrul’s previous defence of pro-bank policies, that the industry’s core business is lending money, and how a loan moratorium will impact its liquidity.
He told Anwar that it is highly likely Tengku Zafrul will fall back on this excuse in the Budget 2021 winding-up speech, and asked the Port Dickson MP what he would say to pre-empt the old argument.
Referring to Tengku Zafrul’s previous post as CIMB Group CEO, Anwar said it will do the world a lot of good if someone earning RM8.5 million a year can empathise with and understand the plight of a person earning RM3,000 a month.
“The CEO of CIMB Bank earned RM8.5 million a year. A TNB (Tenaga Nasional Bhd) executive director earns RM6.1 million a year. This is a huge sum.
“It would be grand if someone with such expertise, who has performed well and earned so much, is able to discuss with and be more caring towards someone who is earning RM3,000 a month.” – The Vibes, November 9, 2020
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