With no end in sight to CMCO, Anwar repeats call for blanket loan moratorium

 

PKR president Anwar Ibrahim has repeated his call for Putrajaya to impose another blanket loan moratorium amidst the recent tightening of movement restrictions due to Covid-19.

In a statement today, the parliamentary opposition leader said the loan moratorium should last another three months as people and businesses were suffering.

"This should last at least for the next several months to help businesses and individuals to cope with the impact of this prolonged crisis and prevent more job losses and businesses going bust.

"The government must show firm leadership by extending the moratorium for another three months, as the economy has yet to recover from the Covid-19 pandemic amid the spike in new cases.

"Additional measures are required to keep small businesses afloat and wages flowing to workers until the MCO ends. It is indeed telling that the government has been silent on protecting the lower-income groups and instead focusing on protecting large corporations," he said.

Putrajaya imposed a six-month blanket loan moratorium beginning April as the government halted most economic activities that month to reduce the spread of Covid-19, which at the time threatened to overwhelm the public health system.

Currently, banks are offering a three-month moratorium for those who have lost their jobs or are furloughed, while other qualified lenders are allowed to renegotiate loan repayment plans.

The new loan policies were created before the latest wave of Covid-19 cases which started to grow exponentially in mid-September.

Sabah, Selangor, Kuala Lumpur and Putrajaya are currently on semi-lockdown mode, officially known termed as the conditional movement control order (MCO).

Movement restrictions have been imposed while non-essential businesses, schools and houses of worship, among others, have been ordered to close until Oct 27.

As active case numbers continue to grow over the past 16 days, there is no certainty as to whether restrictions will be lifted soon.

Meanwhile, Anwar said the government's communication and handling of the health and economic crisis brought by the Covid-19 pandemic have been poor.

"Although it has been eight months since the start of the movement control order, we have yet to see a clear explanation of the government’s strategy in dealing with this crisis and growing the economy.

"Instead, we are witnessing conflicting guidelines and SOPs, not to mention double standards when it comes to implementation," he said.

On the government's latest work-from-home directives, Anwar said it "made no sense" as only management level staff are required to comply.

"Those at operational levels, which consists mainly of lower-income groups, are told to work as usual. How does this help public health measures, at the expense of blue-collar workers?

"The last-minute changes, such as suddenly stating that the directive only applies to public sector workers and those under International Trade and Industry Ministry did not only waste people's time but also caused unnecessary stress and anxiety during an already difficult period," said Anwar. - Mkini