KOTA KINABALU – The federal government must ensure that existing loan repayments remain unaffected by the recent overnight policy rate (OPR) hike, said Sabah Deputy Chief Minister Datuk Seri Jeffrey Kitingan.
While saying the potential benefits of Bank Negara Malaysia’s rate hike on the national economy are understandable, he also expressed concern about the financial impact on the public, particularly Sabahans.
“I urge the government to confirm that the repayments of all loans made prior to the OPR hike will not be affected and that the instalment repayments will remain the same as before the hike. This will ensure the financial burden on our citizens does not increase due to changes in the OPR,” he said in a statement today.
The central bank raised the OPR by 25 basis points to 3.00% in response to the country’s strengthening economic performance and in an effort to control inflation.
Kitingan said the need to affirm that the hike does not affect previous loans is important because it provides a sense of financial security and stability for borrowers who have already planned their finances based on their existing loan terms.
“Any sudden increase in loan repayments due to the OPR hike may lead to financial hardships for those affected, especially for those on a tight budget,” he said.
Kitingan, who is also Keningau MP, said that he recognises the importance of a stable and growing economy, as well as the need to keep inflation under control.
“However, it is equally important to consider the well-being of our citizens and to ensure that policy changes do not adversely affect them.
“By maintaining the instalment repayments on existing loans, we can help alleviate the financial concerns of the people of Sabah and contribute to a more stable economic environment,” he added. – The Vibes, May 13, 2023
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