“This is absurd and will only push people further into debt,” Umno deputy president Mohamad Hasan said.

This comes after the housing and local government ministry (KPKT) said moneylenders and community credit companies registered with it could operate during the first phase of the National Recovery Plan to ease the nation out of the pandemic.

Mohamad, often referred to as Tok Mat, said the ministry should instead use local government cash reserves to provide aid to those in need, rather than allow creditors to operate.

“Is this the way KPKT eases the burden of the people who are in need?

” Is it advisable to encourage people to go into debt? Is this a responsible recovery strategy?” he asked in a Facebook post.

“The people are in dire need of appropriate economic assistance during the extended movement control order 3.0 period.”

Mohamad said adding the burden of debt is not a solution to ease financial pressures.

“Throwing desperate citizens into debt is not only irresponsible, but also highly immoral.”