KUALA LUMPUR – Opposition politicians have voiced in unison that the six-month loan moratorium for all Malaysians, announced by Prime Minister Tan Sri Muhyiddin Yassin yesterday, should be interest-free.
Muar MP Syed Saddiq Syed Abdul Rahman stated that under the present condition, even if an individual is to apply for a six-month moratorium, the interest rate on the loan would be extended to two years.
“This will add further burden to the rakyat. Please revise this,” he said in retweeting a screenshot by a netizen believed to be made from a local bank.
The Muda founder added that there should not be any interest or other charges imposed while the moratorium stands.
“A six-month moratorium should only mean a delay in repayment for six months. Do not take advantage of the rakyat’s burden,” he said.
???
— Syed Saddiq (@SyedSaddiq) June 29, 2021
Kalau mohon moratorium selama 6 bulan, pinjaman akan dipanjangkan kepada 24 bulan (2 tahun)!!
Lagilah tambah beban kepada rakyat!! https://t.co/COHeuoLK4Z
Former prime minister Datuk Seri Najib Razak stated that making the moratorium interest-free would not cause the banks to lose a sen, but instead generate profits for them as it remains an opt-in choice.
Borrowers, the Pekan MP pointed out, would still have to sign agreements on new terms, which ensure that their repayments would resume because banks have not exempted them from any interest charges.
“These were among the complaints last year from borrowers who felt cheated by banks trying to take advantage of their difficult situation,” said Najib, who is also former finance minister.
“Which is why the (present) prime minister said (people should) think it through before applying for this ‘automatic’ moratorium, because it will further burden borrowers.
“As usual, the banks will not suffer any losses,” he added.
Former finance minister Lim Guan Eng in a Facebook post also outlined his disappointment with the announcement, citing lack of rental subsidies and interest-free moratorium on the loans.
“I am disappointed that there is only RM10 billion and not RM45 billion in direct fiscal injection under the RM150 billion Pemulih initiative.
“There need to be more grants, wage subsidies and utilities. With 23,000 contract medical officers and 2,000 contract pharmacists currently unabsorbed as full-time staff in strengthening efforts against Covid-19, will ‘Makcik Kiah’ fully recover from the ‘total lockdown’ which seems to never end?” he asked sarcastically.
Their reactions come after Muhyiddin announced yesterday evening that all Malaysians will now enjoy a six-month loan moratorium beginning next month, as part of the government’s latest round of stimulus packages in light of the Covid-19 pandemic.
In announcing the Pakej Perlindungan Rakyat dan Pemulihan Ekonomi (Pemulih), Muhyiddin said all individuals, regardless of their income status, will be given the benefit, with borrowers only having to file an approval with their respective banks.
He said the decision was made having taken into consideration that those in the middle- and higher-income group have also seen an increase in their financial commitments from assisting family members affected by the pandemic.
“A six-month moratorium will be given to all individual borrowers, whether they are from the B40, M40, or T20 groups, as well as micro-businesses,” he said.
“There will be no more conditions such as salary cuts or job losses, and no need for documentation when making applications. You just need to apply, and automatic approval will be given,” he said.
Assistance for tenants needed
Meanwhile, former Federal Territories deputy minister Datuk Loga Bala Mohan suggested that, since those with mortgages would receive a six-month moratorium, this should extend to tenants who pay rent.
“This would allow businesses to recoup (their losses),” Loga said.
Additionally, he said that, since the government is aiming for herd immunity via the National Recovery Plan by December, some time is needed after that period to allow businesses to recover.
“Given that the recovery plan may not see businesses operating fully until herd immunity is reached, giving businesses a six-month moratorium, which would end when operations resume in full, may not be the best (plan).
“A further six months should be given to allow them to recoup their losses and return to a point where there can service their debts or payments as per normal,” he added. – The Vibes, June 29, 2021
