KUALA LUMPUR – A group of 25 opposition parliamentarians are calling for the government to impose an automatic loan moratorium for six months and enhance the wage subsidy programme to help Malaysians tide over the pandemic economy.
In a joint statement issued today, the MPs said the Social Security Organisation (Socso) should increase the wage subsidy of RM600 per worker (for those earning below RM4,000) and extend it for another six months.
“Although the movement control order (MCO) 2.0 has just been extended, Malaysians have yet to see a decrease in the number of Covid cases. Investor confidence, both domestic and foreign hitting rock bottom and the stimulus package Perlindungan Ekonomi & Rakyat Malaysia (Permai) announced by the prime minister on January 18 is like a drop in the bucket in cushioning the impact of MCO 2.0 and the emergency.
“Unemployment is soaring. If there are no other aggressive measures, more SMEs will go under, leading to more job losses.”
On Monday, Prime Minister Tan Sri Muhyiddin Yassin had announced the RM15 billion Permai relief package that included hiring of health frontliners, a boost to the wage subsidy programme and targeted loan moratorium.
“For a period of one month, eligible employers will receive a wage subsidy of RM600 for each employee earning less than RM4,000,” he said, adding that the limit on the number of workers for each employer will be increased to 500 from the current 200.
Putrajaya had assured that the targeted loan moratorium and restructuring of loan repayments would continue to be offered by banks.
“To date, 1.3 million borrowers have applied for and received such assistance, with an approval rate of 95% for individuals and 99% for SMEs,” said Muhyiddin.
He had said the Employees Provident Fund agreed to provide an advance of up to RM1,000 of the amount applied for under i-Sinar Category 2, for those whose incomes had been slashed by at least 30%.
The opposition lawmakers countered by suggesting an automatic loan moratorium for six months for all, similar to that introduced during MCO 1.0 to help remove public anxiety and bureaucracy.
“The six-month automatic loan moratorium will improve cash flow in the economy, hence creating economic activities. Individuals and SMEs will have more cash at their disposal, which in turn will help to improve the bottom line for all businesses, encouraging them to keep and maybe increase employment (instead of cutting jobs) as they work through this pandemic.
“The current RM600 subsidy for one month only is insufficient as the aftermath of MCO 2.0 and the emergency are still in the process of unveiling itself for some sectors.
“A six-month wage subsidy will greatly encourage employers not to resort to cutting jobs and help carry them through half of this year as they face reduced sales and cash flow. For some, it may also encourage them to start recruitment again.”
They said the government should take extraordinary measures to save jobs as the consequences of rising unemployment may hurt the nation in ways no future stimulus package can aid.
The 25 opposition MPs are:
1. Datuk Darell Leiking (Penampang)
2. Syed Saddiq Syed Abdul Rahman (Muar)
3. Datuk Mohd Azis Jamman (Sepanggar)
4. Hannah Yeoh (Segambut)
5. Yeo Bee Yin (Bakri)
6. Baru Bian (Selangau)
7. Datuk Rozman Isli (Labuan)
8. Datuk Seri Salahuddin Ayub (Pulai)
9. Datuk Amiruddin Hamzah (Kubang Pasu)
10. Teo Nie Ching (Kulai)
11. Isnaraissah Munirah Majilis (Kota Belud)
12. Datuk Mahfuz Omar (Pokok Sena)
13. Khalid Abdul Samad (Shah Alam)
14. Tengku Zulpuri Shah Raja Puji (Raub)
15. Maria Chin Abdullah (Petaling Jaya)
16. Wong Shu Qi (Kluang)
17. Teresa Kok (Seputeh)
18. Datuk Seri Dr Dzulkefly Ahmad (Kuala Selangor)
19. Dr Lee Boon Chye (Gopeng)
20. Kasthuriraani Patto (Batu Kawan)
21. P. Prabakaran (Batu)
22. M. Kula Segaran (Ipoh Barat)
23. Chong Chieng Jen (Stampin)
24. Nor Azrina Surip (Merbok)
25. Sivarasa Rasiah (Sg Buloh). – The Vibes, January 23, 2021
