Instead, the government should offer alternative incentives to bolster these savings so that workers can retire comfortably, said MTUC secretary-general Kamarul Baharin Mansor.

In addition, he called for another automatic, blanket loan moratorium similar to that during the first movement control order last March.

“Do not tamper with employee savings to make it appear that assistance has been provided,” he said in a statement. “MTUC does not want retirees to live under bridges or without homes (because they are without savings).”

Kamarul urged the government to provide up to RM1,200 a month to B40 and M40 families instead of reintroducing the i-Sinar programme.

He said banks were enjoying healthy profits “which indicates they can grant a second automatic moratorium. The government should put pressure on the banks to come together.”

The MTUC statement came as finance minister Tengku Zafrul Aziz indicated that further relief packages could be announced by the government to aid those affected by measures to contain the Covid-19 pandemic.

He said the government had taken note of calls for a further moratorium on loan repayments, and for further i-Sinar withdrawals from the Employees Provident Fund.

Bersatu Youth calls for full moratorium on loans, rent

The government has been urged to grant an automatic interest-free moratorium on all loans. Bersatu Youth said the moratorium should be extended to include licenced loans; credit sales covering the use of credit cards, Amanah Ikhtiar Malaysia loans, loans from Tabung Ekonomi Kumpulan Usaha Niaga and the National Higher Education Fund Corporation, with no additional charges or interest.

It also called for a moratorium on all forms of rent payments, and payment of fees for business licences and local authority licences until Dec 31 or until the economy recovers.