At a press conference today, Tengku Zafrul said the moratorium was a result of discussions between Bank Negara Malaysia (BNM) and the banks.

He had been asked why the moratorium was not given to all and on an automatic basis, as was done in the first MCO.

The opt-in moratorium announced yesterday is for the B40 group, those who lost their jobs, and small and medium enterprises (SMEs).

“The government does not control banks. This is the position of the banks, and BNM has coordinated this effort,” Tengku Zafrul said when asked about the decision not to have a moratorium for all, adding that the government would help out if there are issues with the implementation of the moratorium.

Tengku Zafrul said that under the latest round of moratoriums, all those affected – from people in the B40, those who have lost their jobs, and eligible SMEs – will receive automatic approvals when they apply.

On the impact and cost of the lockdown on the economy, gross domestic product (GDP), and deficit, Tengku Zafrul said it was still too early to provide an estimate.

“We are still calculating the impact,” he said, adding there would be a need to revise economic figures.

He also said the government would continue to spend to assist the people and businesses.

The funding for this spending, he said, would come from savings on expenses, increasing revenue from dividends derived from statutory bodies and government-linked companies, and borrowings.

He said the government has a debt-to-GDP limit of 60% and if there was a need to borrow more, it would.

Currently, the government’s debt-to-GDP ratio stands at 58.5%.

“Our fiscal position is challenging but we have enough to finance aid by increasing our borrowings.”

Earlier, in his briefing on the RM40 billion Pemerkasa Plus package, Tengku Zafrul said there was a need to view the package in the context that previous initiatives including stimulus packages and budget measures were still in the midst of implementation.