LIM Guan Eng has asked why the six-month loan moratorium for Malaysians is not interest-free. 

The former finance minister said there was no mention that the moratorium would be interest-free when the prime minister announced the Pemulih economic aid package today.  

“There are no rent subsidies nor interest-free bank loan moratorium,” the DAP secretary-general said in a Facebook post. 

“There needs to be more grants, wages and utility subsidies.” 

He was commenting on Prime Minister Muhyiddin Yassin’s announcement of a six-month loan moratorium for individuals across all income groups. 

Muhyiddin said individuals in the Bottom 40, Middle 40 and Top 20 groups as well as micro-entrepreneurs will be eligible for the scheme. 

“There will be no more conditions such as income reduction, no more checks on whether you have lost your jobs and no more documentation will be required,” he said. 

“You just have to apply and automatic approval will be given.”

The Bagan MP also questioned if Putrajaya would be hiring 23,000 contract medical officers and 2,000 contract pharmacists as permanent staff to beef up the fight against the Covid-19 pandemic. 

“Finally, can Makcik Kiah recover from this indefinite total lockdown? #KerajaanGagal,” he said sarcastically, in reference to the fictional housewife who has been featured in Muhyiddin previous press conferences. 

Meanwhile, former prime minister Najib Razak said while the latest aid package is awaited by many, there are still some shortcomings that need to be looked into.

“On the automatic moratorium, what PM8 (Muhyiddin) announced earlier was not an automatic moratorium. And not without interest,” he said in a Facebook post.

“The bank will not lose a single sen. In fact, it will reap more profits.”

He said ordinary borrowers will still need to apply (for the moratorium) but are promised that it will be given automatically, while borrowers from the small and medium enterprise category still need to be reviewed and seek bank approval.

“However, the new terms amendment agreement still needs to be signed and this indicates that the borrower’s payment period will be extended for many more years even though the moratorium period is only up to six months because the bank does not exempt any interest charges,” he said.

“These are among the complaints received since last year from borrowers who feel cheated by banks taking advantage of the situation. 

“That’s why, PM8 had advised to think carefully before applying for this ‘automatic’ moratorium because it will increase the commitment on borrowers.

“As usual, the banks will not lose. It will even increase their profits. 

“The moratorium this time is also not the same as last year’s where interest and penalties for hire purchase loans (but not for other loans) were waived.” – June 28, 2021.