Ex-finance minister urges Putrajaya to extend loan moratorium
Former finance minister Lim Guan Eng has proposed that Putrajaya extend the loan moratorium due to expire at the end of September.
He said in the face of a worsening economy, people are not prepared to resume payment on their bank loans.
"The unemployment rate had risen dramatically from 3.2 percent in January to five percent in April.
"The April rate is the highest in...
Former finance minister Lim Guan Eng has proposed that Putrajaya extend the loan moratorium due to expire at the end of September.
He said in the face of a worsening economy, people are not prepared to resume payment on their bank loans.
"The unemployment rate had risen dramatically from 3.2 percent in January to five percent in April.
"The April rate is the highest in decades. It will continue to rise as more companies are in the midst of retrenching employees.
"At a time when the economy is worsening, many Malaysians and local businesses are not ready to deal with the end of the loan moratorium period," he said in a statement today.
Putrajaya had imposed a six-month loan moratorium from April to September where borrowers won't need to repay their loans during this period.
This was to help them cope with an economic downturn brought about by the Covid-19 pandemic.
Lim, who is also the Bagan MP, said he hoped the government can extend the moratorium until the economy recovers.
He proposed another six-month period until the end of March 2021.
"Any extension will help people to better plan their financial obligations and ease their predicament.
"There is no point in driving anyone into bankruptcy which could worsen the economic recession we are facing," Lim said.
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