As such, the Federation of Malaysian Business Associations (FMBA) wants banks to implement a more sweeping loan moratorium to help out those reeling from the effects of restrictions brought by the Covid-19 pandemic.
The federation, which speaks for more than one million companies and four million micro-businesses and self-employed workers, said the nearly RM70 billion in aid given to banks during the two economic crises dwarfed the estimated RM6.4 billion it would take to implement a blanket loan moratorium now for borrowers.
At a virtual press conference, FMBA pro tem chairman Abdul Malik Abdullah said they had already submitted a letter outlining this and the proposed expansion of the moratorium to Prime Minister Muhyiddin Yassin on June 2.
Nadzim Johan, president of consumer group Persatuan Pengguna Islam Malaysia, said that for far too long, the banks had taken advantage of customers and it was now time for them to perform their civic duty.
“The banks must come together as fellow Malaysian citizens. There is a humanitarian aspect here that has not existed in the banking industry.
“They only look at making money and that’s it. We hope they can see our perspective here.”
Under the Pemerkasa Plus package, those in the B40 lower-income group and affected by a loss of income, as well as small- and medium-sized enterprises not operating during the lockdown, are eligible for a three-month loan moratorium or the option to pay back only half of their monthly payments for their loans for six months.
Economist Ahamed Kameel Mydin Meera said if aid is not extended to all Malaysians and businesses, many of whom are facing financial problems, the government will face prolonged issues.
“Cash flow is a significant problem at the moment. If you don’t help, the economy will shrink and so will people’s liquidity.
“If businesses don’t get a loan moratorium now, what we will see is a lot of businesses closing. That will affect future tax collections and the future economy of the country.”
Other proposals put forth by FMBA include extending the duration of the moratorium until the end of the year or until herd immunity is achieved, whichever happens last.
It also suggests making it an “opt-out system” for borrowers as opposed to the current opt-in nature of the moratorium.
The group also said there should be zero additional charges or interests accrued on the affected loans so as not to saddle already struggling Malaysians with hidden costs.
It said that based on the first blanket moratorium in March last year, which cost banks an estimated RM6.4 billion, the burden on the institutions would be more than offset by the roughly RM93 billion in profits the top eight banks had made last year.