MTUC sec-gen: Many will suffer if 'bank-friendly' Tengku Zafrul is not firm
MTUC secretary-general J Solomon has criticised the announcement by Finance Minister Tengku Zafrul Abdul Aziz that the extension of the six-month loan moratorium has not been decided yet but will be considered by the banks on a targeted basis.
"This 'targeted approach' for the loan moratorium after September is too vague, gives banks too much leeway and the B40 and M40 workers will struggle as a result," said Solomon in a statement today...
MTUC secretary-general J Solomon has criticised the announcement by Finance Minister Tengku Zafrul Abdul Aziz that the extension of the six-month loan moratorium has not been decided yet but will be considered by the banks on a targeted basis.
"This 'targeted approach' for the loan moratorium after September is too vague, gives banks too much leeway and the B40 and M40 workers will struggle as a result," said Solomon in a statement today.
He said the government’s move to give the banks the discretion to decide is a mistake.
"Knowing the banks, profits will be the utmost on their minds and this will put the lower income group in dire straits.
"It is weird that the Government is delaying making a decision on such an important matter that will alter the lives of the B40 and M40 group of workers considerably," he added.
He chided the minister for talking about restructuring or lowering interests when the workers would still be required to pay.
"Their inability to pay is not because of weak financial planning but rather because of the pandemic crisis which has caused job losses, pay cuts and unpaid leave.
"In addition, the cost of living has increased considerably now too."
Solomon also criticised the Dewan Rakyat for failing to press Tengku Zafrul on the matter.
"Here was a great opportunity for the MPs to explain the problems faced by those who elected them and they chose to accept it without questioning him on the weak reply.
"It looks like the poor cannot depend on their MPs in times of need. Everyone appears to be busy politicking for positions and power," said Solomon.
He said Zafrul was making it more complicated and cumbersome by asking hundreds of thousands of Malaysians to go to the banks to see the officers.
"This action is wasteful and banks will have to waste a considerable time to haggle with the borrowers. Additionally, the chances of discrimination will arise.
"The Finance Minister and Bank Negara should have taken the initiative to compel the banks to at least continue the moratorium automatically for those workers in the B40 and M40 categories."
"The same should also be extended to businesses which are struggling despite the lifting of the movement control order," said Solomon, who said the minister appeared to be displaying a bank-friendly stance.
"What appears to be clear is that come Oct 1, the banks have the green light to collect their dues at their total discretion."
