The Malaysian government has announced a six-month moratorium on loan repayment, EPF withdrawals and other initiatives under the National People’s Well-Being and Economic Recovery Package
On June 28, an aid package worth RM150 billion was introduced by the Malaysian government to help individuals and businesses who are struggling due to the extended lockdown. Under this National People’s Well-Being and Economic Recovery Package (Pemulih), a six-month loan repayment moratorium was announced, which will come into effect on July 7, 2021.
Here's what we know so far about the loan moratorium as well as the recently announced i-Citra EPF withdrawal initiative and other financial relief schemes to help struggling businesses and individuals manage their cashflow.
Blanket Loan Moratorium
According to announcement by finance minister Tengku Zafrul Aziz's on June 28, borrowers who opt for the six-month loan moratorium will not incur compound interest and penalty charges from their respective banks during this period. According to a statement from Bank Negara Malaysia (BNM), the loan moratorium will come into effect from July 7, 2021 onwards, available to individuals across all income brackets, micro-enterprises, and SMEs; however, they should apply for it with their respective banks.
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"Malaysia is one of the first countries in the world to introduce an initiative like this," Tengku Zafrul said in an Instagram post, commenting on the decision to bring back the unprecedented loan moratorium that was first implemented last year. "Given the NRP, this is the time for us to return to initiatives that will help the people and businesses."