Parti Bangsa Malaysia (PBM) calls on the Government to introduce an across-the-board moratorium for all bank loans following Bank Negara Malaysia’s recent decision to hike the overnight policy rate (OPR) by 25-basis-point to 2.75%.
“While we understand the hike is in response to creeping inflation and is in line with what central banks in other countries are doing, the decision has also resulted in a more challenging environment for businesses to operate,” said party PBM President Designate Datuk Zuraida Kamaruddin.
She added PBM leaders, including herself, have received numerous complaints from the corporate sector, particularly small and medium enterprises (SMEs). Many are facing cashflow difficulties and had barely turned their business around since April 1 when the country started to transition into the endemic stage.
While all sectors of the economy have now reopened, we are still far from the prepandemic levels. The war in Ukraine, disruption in the global supply chain and climate change have only worsened the situation. This is inevitable considering
Malaysia is a global trading nation.
“We have also received feedback that many businesses had structured their loans on the assumption that the economy would rebound. But this does not appear to be the case as even the World Bank has recently revised Malaysia’s 2023 growth target from 4.5% to 4.2%.
“This is why we believe a moratorium can be a critical lifeline for businesses, particularly during such challenging times. Economists have validated the success of Malaysia’s moratorium plans in the past and I am sure it will have the same effect now.”
Furthermore, Malaysian banks have proven to be resilient, having made respectable profits even at the height of the pandemic. They are financially more than healthy enough to absorb any shocks that may arise due to the moratorium.
