Government Announces Moratorium Extension For Targeted Groups

On 29 July 2020, Prime Minister Muhyiddin held a special broadcast to make an announcement regarding the extension of bank moratoriums and targeted financial assistance in light of the MCO which started in March.

In his speech, the PM stated that, despite the gradual reopening of the economy during the RMCO, certain sectors are still struggling financially and some businesses are still unable to operate. There are also those who have lost their jobs and source of income. As a result, there are many who hope that the moratorium would be extended.

After discussion with the Minister of Finance and other relevant parties, the government has decided to extend the moratorium period and roll out additional targeted assistance for the following:

1) For individuals who have lost their jobs and are currently unemployed. Those who have been laid off as a result of the pandemic and are currently still without work will be able to enjoy an extended moratorium period of three months. A further extension can be granted by the banks based on a case-by-case basis.

2) For individuals who are still employed but suffered a reduction of income. Individuals who have seen a reduction of salary or income can apply for a reduction in the amount of monthly loan repayments according to the approximate percentage of income loss.

3) For business owners who have suffered a loss of income. In addition, banks have also given their commitment to help business owners based on their current financial situation. These include allowing the repayment of only monthly interest, offering an extended loan period, or other different subsidies and loan restructuring. We expect the various banks to provide further details soon.

4) For those who have a hire purchase account. In terms of hire purchases, banks will offer different subsidies as well, such as an extension of loan period or restructuring of loan repayment amount.

Those who qualify and are interested to apply for the various financial relief programmes can contact their respective banks and apply starting 7 August 2020.

Finally, the PM ended his speech by reminding Malaysians to remain vigilant over the COVID-19 pandemic and stay healthy and safe.

By Darren

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