BARISAN Nasional (BN) Backbenchers Club chairman Najib Razak said the coalition will not support Prime Minister Muhyiddin Yassin’s Budget 2021 unless the blanket moratorium on bank loans is extended.

The former prime minister also said bulk withdrawals, instead of instalments, must be allowed from Account 1 of the Employees’ Provident Fund (EPF).

Najib, the Pekan MP, was speaking in the Dewan Rakyat today during debates on the budget, which was tabled last Friday.

His speech indicates the trouble Muhyiddin’s government, which only has a two-MP majority, may face in getting the supply bill passed.

“The budget was drafted under extraordinary circumstances but it ought to be amended because these are extraordinary times,” said Najib.

“In this matter, BN’s stand is we want the EPF withdrawal of RM10,000 to be a one-off item and the loan moratorium be extended to June 30, 2021.

“My support and the support of BN MPs depend on these two conditions. Hence, our support for Budget 2021 is conditional,” said Najib, who has been appointed BN spokesman for the budget debate.

Under the budget, only RM500 per month can be withdrawn from retirement funds in Account 1 for up to a year, to a maximum of RM6,000.

The controversial move has been criticised but Muhyiddin has said that it ought to be the last resort for those financially challenged because of the Covid-19 pandemic.

Najib today said allowing bulk withdrawals of RM10,000 from Account 1 would not hurt government coffers because it will not be reflected in government liabilities or the national deficit.

“This is what I mean by a brave and extraordinary measure for these extraordinary times. The money withdrawn from EPF will also circulate in the economy and eventually be recovered by the government.”

Meanwhile, the blanket moratorium lasted for six months this year until the end of September, after which the government said borrowers would have to discuss arrangements with their banks for a moratorium extension or to restructure loans.

Najib today added that the moratorium should be extended as people would need the funds, since the conditional movement control order was also being extended.

“I also agree with Port Dickson (Anwar Ibrahim) that the moratorium can be extended since banks are reaping huge profits,” he said.

Another proponent of extending the blanket moratorium is BN’s political nemesis, DAP. – November 10, 2020.