Automatic loan moratorium to be discussed – PM

Automatic loan moratorium to be discussed – PM

The Malaysian government will discuss the request for an automatic moratorium on bank loan repayments to ease the financial burden on the people in light of the ongoing pandemic, prime minister Datuk Seri Ismail Sabri Yaakob said.

“The government is aware of the situation faced by the rakyat and will try to assist as best as possible,” the prime minister said in response to a question posed by Pontian MP Datuk Seri Ahmad Maslan, reported The Star.

One suggestion raised in today’s Dewan Rakyat session by Port Dickson MP Datuk Seri Anwar Ibrahim was for the government to inject an additional RM45 billion into the Covid-19 relief effort, and said that any implementation of a loan repayment moratorium “must be one that is meaningful.”

The Covid-19 relief funds provided through the RM45 billion injection must be carefully monitored to avoid the cash aid being used by its recipients to pay off their bank loans, Anwar added.

In response to Anwar’s query on what the government is doing to address the country’s decrease in household income by 10.3%, PM Ismail Sabri said that eight economic stimulus packages have been implemented since last year, when the Covid-19 pandemic saw unemployment increase to 5.3% last May.

Automatic loan moratorium to be discussed – PM

The prime minister also acknowledged that incidences of poverty have increased to 8.4%, or 636,000 individuals and households last year, compared to 5.6% or 405,004 in 2019 due to the pandemic, the report said.

Of the eight stimulus packages introduced previously, among them was a moratorium on loan repayments to benefit seven million individuals, said Ismail Sabri, and added that the government had also spent RM3.14 billion for discounts on electricity bills for 8.8 million households, as well as RM106.8 million on 1,121,385 food baskets for distribution to the less fortunate.

Earlier in June this year, then-prime minister Tan Sri Muhyiddin Yassin announced a six-month loan repayment moratorium for all Malaysians across all income segments from B40 to T20, including micro entrepreneurs.

This was offered with automatic loan approval for individual borrowers, though approval of applications by companies such as small and medium enterprises (SMEs) are subject to review by banks, and not automatic. On June 29, finance minister Tengku Datuk Seri Zafrul Abdul Aziz said that the moratorium is not interest-free, but banks have been told to waive compounded interest and late payment penalty charges.

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Open roads and closed circuits hold great allure for Mick Chan. Driving heaven to him is exercising a playful chassis on twisty paths; prizes ergonomics and involvement over gadgetry. Spent three years at a motoring newspaper and short stint with a magazine prior to joining this website.



  • Selvam on Sep 14, 2021 at 3:02 pm

    How is the bank going to survive

    Like or Dislike: Thumb up 10 Thumb down 20
    • David on Sep 14, 2021 at 6:41 pm

      banks has enough cash reserves to sustain for years ahead. revenue is not affected as interest would still be chargeable.

      Like or Dislike: Thumb up 6 Thumb down 1
      • adghiujbccv on Sep 14, 2021 at 9:13 pm

        every rakyat also got cash reserves under the mattress/pillow/piggy bank or in any hiding place at home. no worries. everything is coming up roses…

        Like or Dislike: Thumb up 2 Thumb down 2
      • apanama on Sep 15, 2021 at 10:50 am

        There’s an open secret in the global banking community that those ‘cash reserves’ are from illegal sources e.g. drug cartels, corrupt politicians, rogue dictators, etc.

        Like or Dislike: Thumb up 1 Thumb down 1
  • Kavitha on Sep 14, 2021 at 4:04 pm

    Working in bank and too much moratorium is not the way to go

    Like or Dislike: Thumb up 11 Thumb down 11
    • Amran on Sep 14, 2021 at 6:37 pm

      Tak bagi komplen, dah bagi lagi nak komplen. Piiirraahhhlahh!!

      Like or Dislike: Thumb up 11 Thumb down 4
      • narma on Sep 14, 2021 at 9:18 pm

        Jangan risau.. Keluarkan semua duit dari akaun bank & simpan saja di bawah bantal atau tilam..

        Like or Dislike: Thumb up 1 Thumb down 0
    • BOD financial institution semakin kaya on Sep 14, 2021 at 11:02 pm

      You must be worried getting fat annual bonus cut?

      Like or Dislike: Thumb up 6 Thumb down 0
  • Curious on Sep 14, 2021 at 5:11 pm

    Wat to do, on the right crying for gov financial assistance, on the left stil can buy new car.

    Like or Dislike: Thumb up 7 Thumb down 0
    • But well done. At least kerajaan are doing assistance for the rakyat people

      Like or Dislike: Thumb up 17 Thumb down 5
      • Rakyat Malaysia on Sep 14, 2021 at 6:06 pm

        Well done Perihatin Nation!

        Like or Dislike: Thumb up 10 Thumb down 4
        • shomi damani on Sep 14, 2021 at 8:10 pm

          easy talk.. the economy also depends on the health of the financial institution.. pray that there won’t be any run on the bank which can wipe out the rakyat’s savings..

          Like or Dislike: Thumb up 9 Thumb down 9
          • a n k on Sep 15, 2021 at 1:01 am

            apa boleh buat.. dia org asyik puji aje tapi sebenarnya tak cukup paham berapa pentingnya peranan institusi kewangan dlm ekonomi.

            Like or Dislike: Thumb up 4 Thumb down 1

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