PRIME Minister Ismail Sabri Yaakob must extend bank loan moratoriums and interest waivers for another six months, said Lim Guan Eng.

The DAP secretary-general said this is due to persisting poor business sentiment and economic conditions, as well as price hikes.

“Bank loan moratoriums and interest waivers will either expire at the end of this month or the next. A six-month extension will help save lives and livelihoods.

“The banking industry can afford to carry the burden as they were estimated to enjoy RM20 billion in profits after taxes last year, despite bearing the cost of the previous bank loan moratoriums and interest waivers.”

The former finance minister said moratoriums are still needed due to inflation, with the Statistics Department announcing a 2.5% rise in annual inflation last year, compared with a 1.2 % deflation in 2020.

In September, Lim told Putrajaya to let small and medium enterprises (SMEs) get zero-interest loan moratoriums from banks, similar to those offered to low-income Malaysians.

This is warranted as SMEs have suffered RM40.7 billion in revenue losses last year, according to government figures, he added.

Finance Minister Tengku Zafrul Tengku Abdul Aziz said his ministry has asked banks to offer three-month, interest-free loan moratoriums to Malaysians in the Bottom 50% as part of the government’s agreement with Pakatan Harapan. – January 25, 2022.