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Bank Negara Instructed to Give a 6-Month Moratorium

Day 7 of the Movement Order Control (MCO)

At least today we have something to cheer about amidst a gloomy backdrop. While many start to feel agitated sitting at home pondering at the four walls wailing how to meet end meets, today the Malaysia Government through Bank Negara had instructed all the banks to give a 6-month moratorium.

This means all forms of loan payment will stop for the next 6 months including housing, hire purchases and business loan.

I must congratulate the individuals and organisation whom had spearheaded this movement to convince the government on this policy change. The government of the day did the right thing in introducing such policy measure in alleviating the suffering of the ‘rakyat’.

Next step the government needs to roll out more comprehensive solutions in ensuring all SMEs will be able to receive business loan in order to survive the uncertain climate. The current rules on applying for the Financial Relief Loan for SME businesses from the local banks are still stringent following the normal day to day bank ‘s guideline check. If it is indeed sunshine as usual then no one will blame the bank for such guidelines, however dire situation warrants for extreme measure.

Bank needs to keep situation abreast by introducing a more relax policy in the guideline for approving such bank loan. While the banks gave a 6-month moratorium for loan payments of sort, there are many costs that business needs to pay to ensure survival. Cost such as staff salary, rental and etc. Hence I hope to see central bank will look into relaxing such policies for the SME businesses to apply the financial relief to weather through the storm.

At the end of the storm indeed it will be sunshine again with colorful rainbow.

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