The Malaysian Insight

SMALL businesses and B40 income earners automatically qualify for a loan moratorium extension next year, said Finance Minister Tengku Zafrul Abdul Aziz.

To be granted deferment, they will need to contact their bank. Approval is assured.

“The M40 group need only to do a self-declaration and do not have to submit documents,” he said in his winding-up speech on Budget 2021 in the Dewan Rakyat today. 

“Those not in these groups may apply separately.”

As for the T20 group, Tengku Zafrul asked if it would be fair for the rich to get their loan repayments deferred.

“The main principle here is responsibility and fairness. Is it fair for the rich to also get the moratorium when they can afford to pay? Isn’t it better for them to repay their loans so that some money flows back into the banking system?” 

He said the government remained open to talks with the banks on how to help those financially affected by the pandemic.

He said the first moratorium of six months was valued at RM100 billion.

“Since October, more than 700,000 applications for a moratorium have been received and 98% of them have been approved.”

He said about 85% of borrowers had begun repaying their loan when the first moratorium ended in September.

During debate on the budget bill, Barisan Nasional Backbenchers Club chairman Najib Razak had told the government that his coalition’s support for the spending plan hinged on its including a loan moratorium extension and lump-sum EPF withdrawal. 

The opposition Pakatan Harapan meanwhile also wanted the loan moratorium to be extended on top of more money for the Health Ministry to combat the Covid-19 epidemic, more welfare aid of RM1,000 per month, and increased spending on education. – November 26, 2020.