Najib, Guan Eng call for interest-free moratorium

 

Former finance ministers Najib Razak and Lim Guan Eng want banks to make the moratorium interest-free as they will not be suffering any losses, and may even profit from the opt-in moratorium.

PETALING JAYA: Two former finance ministers have called for the six-month loan moratorium, announced today, to be free of any monthly interest.

DAP secretary-general Lim Guan Eng said he was disappointed that there was no mention of an interest-free moratorium, while former prime minister Najib Razak said this was something that needed to be improved on.

In a Facebook post, Najib said banks would not lose a sen from making the moratorium interest-free but even stood to make more profit, pointing out that the moratorium was still opt-in.

He said borrowers would still have to sign agreements on new terms, adding that this made it seem that their repayment period would continue for years because banks have not exempted them of any interest charges.

“This was among the complaints last year from borrowers who felt cheated by banks trying to take advantage of their difficult situation.

“That’s why the prime minister said to think it through before applying for this ‘automatic’ moratorium, because it will add on to borrowers’ commitments. As usual, banks won’t suffer losses,” he said.

Separately, Lim expressed disappointment that Putrajaya would only be injecting RM10 billion directly in the RM150 billion package, while there would be no rental subsidy.

He called for more grants as well as greater wage and utility subsidies, and also questioned if contract medical officers and pharmacists would be absorbed as permanent staff by the health ministry.

“Can Makcik Kiah finally recover from this indefinite total lockdown?” he said sarcastically, in a reference to the fictional housewife who was a feature of Prime Minister Muhyiddin Yassin’s policy address last year.

Other aspects of the relief package also came under criticism from MPs.

Klang MP Charles Santiago said the i-Citra facility for further withdrawals from the Employees Provident Fund would degrade workers’ savings meant to safeguard their future.

“The B40 workers are more vulnerable. What’s so Pemulih about this? Social protection cannot be at the expense of impoverishing workers,” he said in a Twitter post.

Bukit Mertajam MP Steven Sim said the RM3,000 one-off aid for sporting venue operators was too little, pointing out that gyms were reported to have suffered more than RM110 million in losses since March 2020.

In calling for greater aid for the sports sector, the former deputy youth and sports minister said the industry provided jobs for over 15,000 Malaysians, including trainers, instructors and sports therapists who have lost their source of income for a long period of time.

He reiterated his call for a RM100 million continuity fund to save the industry, and the provision of a monthly rent subsidy of up to 50% or a maximum of RM5,000. A grant of up to RM10,000 should be provided to help the industry shift to a digital platform, as well as a special one-off grant of RM2,000. - FMT