Malaysian MPs: Provide 6 months’ automatic loan moratorium

Twenty-five MPs have appealed to the government to implement six months of automatic loan moratorium to save jobs.
By: | January 26, 2021

This appeal by opposition MPs is made in a bid to keep businesses afloat and, by extension, to save jobs, as the country comes under a second movement control order (MCO 2.0) on January 13. 

The MPs said the loan repayment moratorium would help improve cash flow and save jobs. 

“SME and individuals which are not affected can continue with their existing loan repayment. 

“Six-months automatic loan moratorium will improve cash flow in the economy hence creating economic activities. Individuals and SMEs will have more cash at their disposal which, in turn, will help to improve the bottom line for all businesses, encouraging them to keep and maybe increase employment (instead of cutting jobs) as they work through this pandemic,” the MPs said in a joint statement. 

In addition, the MPs also proposed that the Social Security Organisation (Socso) increase its wage subsidy of RM600 (US$148) per worker for those earning below RM4,000 (U$989) and to extend the subsidy for at least six months. 

“The current RM600 (US$148) subsidy for one month only is insufficient as the aftermath of MCO 2.0 and the Emergency are still in the process of unveiling itself for some sectors. 

“Six-months wage subsidy will greatly encourage employers not to resort to cutting jobs and help carry them through half of this year as they face reduced sales and cash flow. For some, it may also encourage them to start recruitment again,” said the MPs. 

READ: Malaysia steps up delivery of Permai package

The MPs also said the RM15-billion (US$3.7-billion) Permai stimulus package announced on January 18 is simply inadequate to address issues such as unemployment and the economic crisis that Malaysia is facing right now, according Malay Mail. 

“This is an extraordinary time. The government should take extraordinary measures to save jobs,” the MPs said.