The government should consider extending the six-month moratorium offered for bank loan repayments until December 2020, said the Federation of Malaysian Consumers Associations (FOMCA).
According to the president of FOMCA, Datuk Marimuthu Nadason, the Malaysian public will have difficulties making ends meet after suffering loss of income and jobs due to the Covid-19 pandemic. The struggle will be compounded if they had to pay all the debts accrued throughout the movement control order (MCO) and conditional movement control order (CMCO) at the same time.
Datuk Marimuthu also commented that while the MCO and CMCO period have already been lengthened to 84 days, it may be further prolonged if there is a spike in the number of infections. In the face of financial uncertainties caused by this, he urged banks to lend a hand by extending the moratorium.
“FOMCA calls on the government to extend the loan deferment from the present six months to nine months. This would enable workers to hopefully get back into the job market with their current employers, and those who lost their jobs with new employments,” said Datuk Marimuthu in a statement.
As part of the Prihatin economic stimulus package, Bank Negara Malaysia (BNM) had announced an automatic six-month moratorium for individual and SME loans, starting from 1 April 2020 until 30 September 2020.
(Source: Malay Mail)