Banking institutions in Malaysia have been instructed by the ministry of finance (MoF) to immediately work on the exemption from interest payments for recipients of bank loan moratoriums, The Edge and Business Today reported.
Finance minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said in a statement that this will involve moratorium recipients in the B50 segment, which is the bottom 50% of all Malaysians in terms of income classification. The planned exemption from interest payments will be applicable for a period of three months in the fourth quarter of this year, so from October to December 2021.
Previously in June, then prime minister Tan Sri Muhyiddin Yassin has announced a six-month loan repayment moratorium for all Malaysians under the Pemulih package, which is similar to what was handed out during the first movement control order early last year.
Covering all Malaysians from the B40 segment to the country’s top 20% earners (T20), including micro entrepreneurs, those requiring assistance only needed to apply with their respective banks. Tengku Zafrul said at the time that this is meant to help borrowers by deferring repayments to a later date, but would not be interest free.
However, he later added that banks would waive compounded interest and penalty charges for borrowers who take up the moratorium. His latest statement appears to take things a step further, as B50 moratorium recipients would not be subjected to interest payments for the aforementioned three-month period.
The MoF’s directive to banking institutions comes after a Cabinet meeting on September 10, whereby ministers had approved a proposal to table amendments to the Temporary Measures for Government Financing (Covid-19) Act 2020. This will entail raising the ceiling limit of the country’s Covid-19 fund to RM110 billion from RM65 billion previously, while also increasing the statutory limit of federal government debt from 60% to 65% of gross domestic product (GDP).
“The amendments to the bill will be tabled for approval in the Dewan Rakyat this October and are aimed to, among others, strengthen the public health system, especially to curb the spread of Covid-19 and treat Covid-19 patients, improve direct cash assistance to the rakyat, and support business continuity, especially for small and medium enterprises (SMEs) as well as micro SMEs,” said Tengku Zafrul.
Compounded & penalty jer. Bukan interest-free pon
The car already becoming scrap, and still loan has not been settled.
Tengkiu & well done Perihatin Nation!
Well done! Give yourself more thumbs up!
Why so, ur boss only pay u to downlike 3 times saja ka? Kah kah kah kah kah!!!
Tak bagi komplen, dah bagi lagi nak komplen. Piiirraahhhlahh!! Pembangkang semua makan gaji, takde keje nak buat selain kaki komplen je
RM, CK & A tak de komplen sebab dah puas hati sama2 hisap ibujari.
In 1st June 2021, Tengku Zafrul said that the government does not have any legal force to dictate what moratoriums banks can provide or how they are implemented.
Now, 3 months later, MOF suddenly has power to instruct banks to give interest free moratorium. Now we all know that you have been lying all these while, eh?
Yeah lah.. How come central Bank Negara also didn’t announce anything?
19 Aug 2021, then PM offers bipartisan unity rule with reforms but Pembangkang rejected reforms.
Now 1 month later, new PM made the same exact offer and it was accepted by Pembangkang talking about reforms. Now we all know that they have been lying all these while, eh?
pm changed but fm still the same. nothing to do with oppo.
FM gets instructions from PM lah. Are you new to politics?
pm instructs fm how to do bcos fm don’t know or fm knows how to do but 1st get approval from pm; same politics whether new or old.