A VICTORY for Warisan Plus will pile pressure on Putrajaya to extend the moratorium on bank loan repayments, Lim Guan Eng said today.

The DAP secretary-general said such pressure is needed to compel Prime Minister Muhyiddin Yassin to change his mind as he has refused to listen to the appeals of the people.

“DAP regrets the stubborn refusal of Muhyiddin Yassin to heed the calls of ordinary Malaysians and the business community to extend the moratorium of bank loans by another six months when it expires on September 30,” he said in a statement.

The former finance minister noted that the Master Builders Association Malaysia (MBAM) was the latest to plead for an extension, amid the construction industry’s losses of RM11.6 billion every month since the movement control order (MCO) was introduced on March 18.

Lim said 29% of the losses were due to unemployment as construction projects had to be halted.

“What is significant is that MBAM’s plea for the extension of the moratorium for another half a year is defensive and a cry for help, to help protect not promote one of the most important economic sectors in the country,” he said.

Muhyiddin on July 29 announced the moratorium will be extended, but only by three months and for those who have lost their jobs this year.

“I hear your calls to extend the loan moratorium which is set to end on September 30. I know there are many who are expecting the moratorium to be extended.

“On that note, I have discussed with the finance minister and the governor of Bank Negara Malaysia to find a solution to the problems faced by those who are still in need of assistance after the moratorium ends,” he said.

Trade associations and  industry have also asked for an extension to help them cope with the economic fallout of Covid-19.

Lim said the value of the loan repayment moratorium by financial institutions since April 1 is estimated at RM85.8 billion, RM30 billion of which had benefited the business sector and the remainder, individual Malaysians. 

He said this was significant in protecting the jobs and businesses of eight million individuals and companies.

Lim said while another six-month deferment on loan repayments would cost the banks RM6.4 billion, the loss could be “easily borne by the banking industry that had recorded a profit of RM32 billion in 2019”. 

“Even if the banks were unwilling, the government can inject RM6.4 billion to assist eight million Malaysians and companies. This is money well spent, with a high impact value to eight million Malaysian individuals and companies worth RM86 billion.

Lim pointed out that the Human Resources Ministry has revealed there will be one million unemployed Malaysians by the end of September, more than half of whom are young people.

“Failure to extend the loan moratorium will only increase the hardship of a million unemployed Malaysian workers,” he said. – September 20, 2020.