With RMCO extension, freeze repayments for 6 more months, says Guan Eng

Lim Guan Eng says the RMCO extension must be accompanied by further financial assistance for the people.

PETALING JAYA: Former finance minister Lim Guan Eng has urged Putrajaya to extend the moratorium on bank loans for another six months following the extension of the recovery movement control order (RMCO) until the end of the year.

Lim said he was surprised that Prime Minister Muhyiddin Yassin did not announce an additional stimulus package with the RMCO extension, adding that not continuing the moratorium would severely affect jobs, small-medium enterprises and also manufacturers.

He said extending the moratorium by another six month from its expiry on Sept 30 would only cost banks some RM6.4 billion, and that the financial institutions should be able to afford it.

“The prime minister should realise the extension of the RMCO will have negative economic consequences that must be alleviated with financial assistance.

“Assurances that the Covid-19 pandemic was under control will be more heartening to workers and small businesses, if financial measures are also announced to quickly lift our economy out of our current recession.

“Clearly an additional RM45 billion is needed to the existing RM45 billion fund injection (total RM90 billion) to save not only Malaysian jobs, SMEs but also manufacturers,” he said in a statement today.

Lim urged Putrajaya not to wait until next year before announcing aid measures, stressing that saving jobs and businesses must be the priority.