PUTRAJAYA’S targeted loan moratorium does not go far enough to help workers in the informal sector, said opposition leader Anwar Ibrahim.

Anwar, who is also Port Dickson MP, added Putrajaya by its own admission had said the moratorium primarily targets those in the formal sector who have lost their jobs or took pay cuts.

“The measures, announced yesterday, do not ensure benefits will reach the self-employed and those in the informal sector, especially the urban poor and rural groups,” he said in a statement today.

“We have highlighted that almost 20% of Malaysia’s workforce is self-employed.

“During the MCO, this group has been severely affected by loss of income, with more than 90% experiencing a drop in income and as much as 50% losing all income.”

Prime Minister Muhyiddin Yassin yesterday had announced that the moratorium would be extended after September as workers’ groups and businesses complained that there would be more job losses in October.

This time, the moratorium that will be extended for three months will only be given to those who meet certain criteria, such as those who lost their jobs this year and yet to find new employment.

Muhyiddin had said those who were still employed but had their pay cut would see their monthly payments reduced proportionate to their income.

The aid will be in effect for at least six months, and extensions will be granted depending on the current income of the individual.

Anwar had said the moratorium would be dependent on the bank’s approval process, which unions and consumer groups had suggested could be problematic.

“The targeted moratorium and loan repayment flexibility are dependent on the application and approval process implemented by the banks.

“The relief, which has been promised, is not automatically guaranteed and banks have ultimate discretion in determining who does or does not qualify for financial reprieve.”

He added that the government must come up with a more comprehensive solution to the rising unemployment, poverty and inequality in the economic fallout of the Covid-19 crisis.

The Perikatan Nasional administration must establish a sustainable social security programme to assist the poorest segments of society and support small and medium enterprises struggling during the pandemic, he said.

“This is a temporary solution to a deeper problem. I call on the government to implement a more holistic approach in addressing rising unemployment and poverty levels in the country.” – July 30, 2020.