The government has announced a targeted extension for the moratorium on bank loans for those who either lost their jobs or had pay cuts this year as a result of the Covid-19 pandemic.
Prime Minister Tan Sri Muhyiddin Yassin said individuals who lost their jobs in 2020 and still haven’t gotten a new job can enjoy the moratorium for another three months (up to Dec 31).
“After three months, the moratorium period can be extended by the banks depending on the individual’s situation.
“For individuals who are employed but have had their wages cut, their monthly installments will be decreased in tandem with their pay cuts, ” he said in a televised address on Wednesday (July 29).
Back in April, Malaysia implemented a repayment moratorium, and became the first country to introduce a six-month moratorium.
The six-month moratorium, announced by Muhyiddin in late March, ends on Sept 30.
The moratorium period is a duration a borrower is not obligated to make monthly debt repayments to the banks.
It was initiated to relieve the burden of those directly affected by the impact of the pandemic. It was also designed to keep cash within households, given the uncertainty at the start of the pandemic.
The loan moratorium was a feature from the first relief package during the movement control order by the government that saw business and consumer activity basically grind to a halt, except for essential services.
Other countries that have introduced various forms of moratorium include Singapore, Indonesia, the Philippines, Thailand, the United Kingdom, Canada, Italy, and the United States.