PRIME Minister Ismail Sabri Yaakob must have the political will to introduce a bank loan moratorium and interest waiver for small and medium enterprises (SMEs) to help their businesses survive, Lim Guan Eng said today.

The DAP chairman said the ringgit’s weakness continued putting pressure on the cost of imported inputs and materials for many businesses, especially SMEs. 

He also said Ismail should pay more heed to the urgent need of offering financial support for affected businesses than being concerned about the date of the general election.

“A bank loan moratorium will only happen if there is another similar Memorandum of Understanding (MOU) 2.0 between Pakatan Harapan (PH) and the prime minister or if the general election is held next year instead of this year,” said the Bagan MP.

Lim added that the MOU between PH and Ismail on September 13, 2021, agreed for a waiver of interest rate and bank loan moratorium for the lower income groups.

It also agreed for an additional RM45 billion cash injection to give extra financial aid and grants to help businesses, especially SMEs. 

The extra benefits enjoyed by the public and businesses today were a direct result of the MOU signed between all top PH leaders and the prime minister, he said.

“While some may say that the outcome of whether or not to grant the bank loan moratoriums is dependent on banks, it is ultimately political will and not private banking considerations, that will prove decisive just as happened when the first MOU was signed. 

“PH will provide the necessary political and public support not just for a bank loan moratorium but also for an interest rate waiver for a specified period to help target groups. 

“The government must give priority to the needs of the people over the rather ample profit considerations of the banking sector,” he said.
Lim said the government’s overly optimistic economic growth trajectory may face continued obstacles following a host of new challenges such as soaring food prices and rising costs associated with global inflation caused by the Ukraine war and supply chain disruptions.

He said that severe foreign labour shortages has remained unresolved, the ringgit remained depreciating while the government continued with it inconsistent policymaking and U-turns, bureaucratic red-tape and poor governance.

Yesterday, Finance Minister Tengku Zafrul Abdul Aziz said the decision to grant moratoriums to SMEs was dependent on banks.

However, the government can encourage policies that are helping the people, he said, while expressing hope that banks and Bank Negara Malaysia will continue to support the SMEs and micro, small and medium enterprises that are genuinely facing difficulties. – September 14, 2022.