KUALA LUMPUR – Individuals from the B40 group as well as micro and small enterprises will get an automatic loan moratorium extension next year, Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz told the Dewan Rakyat.
Those in the M40 group, meanwhile, will only need to make self-declaration in order to qualify for a similar moratorium extension.
The move comes amid pressure from various quarters for a blanket moratorium for all Malaysians.
“We have made the process easier for the B40s and micro and small businesses, which will be approved by banks in 24 hours. It’s automatic.
“The M40 also need not provide any documents to have their loans extended, with approval to be given within one to five days.
“For those who are not categorised in these groups, they can still apply for the moratorium, but they will have to go through their banks,” he said during his Budget 2021 winding-up speech today.
Tengku Zafrul said it would be unfair to provide a similar automatic moratorium extension for the affluent, adding the money could be better utilised to by the financial institutions.
“Wouldn’t it be better if they (borrowers) repay their loans so it can be used by the banks to generate more loans for others?
“This is why we felt those who can afford (it) should be making their loan repayments.”
Earlier in his speech, Tengku Zafrul dismissed criticism that Budget 2021 was political in nature and not drafted with the people in mind.
“It is a Covid-19 budget, a budget for survival of the rakyat and the resilience of the economy. That’s the reality,” he said. – The Vibes, November 26, 2020
