The Federation of Malaysian Business Associations and Industries Unite, which represent one million businesses as well as 2.8 million self-employed and micro-business owners, said the moratorium should cover all employers and employees from both the public and private sector, not only the bottom 40 group.

In a statement detailing its letter to the prime minister, it said the plan should include small, mid-tier and even large companies, instead of just micro-enterprises, and take into account all personal facilities such as overdrafts, housing loans, car loans, credit cards and mortgages.

The current moratorium must be extended until the end of the year, while all bank charges for any restructuring and rescheduling exercise must be waived.

Noting that interest rates during the moratorium were unspecified and left to individual banks, the statement suggested that “the interest should be on the basis of ‘cost of funds’. The banks must be public and transparent with regards to the ‘cost of fund’ issue.”

It also pointed out that the previous moratorium during the first movement control order (MCO 1.0) had failed to cover credit and leasing facilities.

It added that those who do not wish to take part in the moratorium would have to opt out, similar to that of MCO 1.0. The current plan requires borrowers to opt-in.

The statement explained that these suggestions were possible as the government had previously rolled out two fiscal stimulus programmes worth RM70 billion in 2008 and 2009.

“The main beneficiaries were those in the banking system who were saddled with a high credit exposure and facing imminent collapse. We feel the banking industry must take a moral stand and step up when the country is in a crisis,” it said.

It added that eight of Malaysia’s top local banks had made RM93 billion in profits over the last three years, which meant they could afford the estimated RM6.4 billion from the new moratorium.