Business

Banks to lose RM6.4b over loan moratorium

Datuk Seri Tengku Zafrul Abdul Aziz

TheMole
Written by TheMole

KUALA LUMPUR, July 27 2020: The banking sector would collectively suffer a loss of RM6.4 billion by the end of the six-month loan moratorium period in September.

Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz said the sector is currently losing RM1.06 billion per month to accommodate the policy which was meant to provide relief for the public from the Covid-19 restrictions.

“Based on our discussion with the banks, they have expressed their commitment to continue helping the public and an announcement will be made soon regarding the moratorium,” Tengku Zafrul told the parliament today.

Tengku Zafrul was responding to a supplementary question by former finance minister Lim Guan Eng (PH- Bagan).

Tengku Zafrul said over 93 per cent of Malaysians are enjoying the moratorium and over 95 per cent local businesses are benefitting from the initiative.

“Efforts to help borrowers must be balanced so as to ensure the banking industry will continue to be able to fund the economic activities and support the economic recovery,” he said.

He also pointed out that Malaysia is the only country which implemented the moratorium period automatically.

On wage subsidy, Tengku Zafrul said RM7.8 billion has been disbursed to over 2.75 million Malaysians and the government will review the need to continue the subsidy at the end of the year.

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