Banks should not take legal actions on people in difficulties to pay loans due to pandemic – PM Ismail

20211216 211957

PUTRAJAYA DEC.16: The government urges the banks to continue helping the people who have difficulties in paying back their loans and postpone any legal actions for those who fail to do so.

Prime Minister, Datuk Seri Ismail Sabri Yaakob said, the government appreciates the banks’ efforts not to take fast and easy way to blacklist those who are really facing difficulties in their loan payments or place them under bankruptcy list.

Ismail added, the government through Malaysian Insolvency Department has raised the bankruptcy threshold to RM100, 000 to protect those who probably could not maintain their finances due to the pandemic impact.

“This provision is made based on Insolvency Act (1967) and Temporary Measures to Reduce the Coronavirus 2019 (COVID-19) (2020) Infection Effect,” Ismail said in a statement here today.

In helping the B50 group, as what has been announced on Oct.13, 2021, the banks together with the Credit Management and Counselling Agency (AKPK) has implemented the Management and Finance Resilience Programme (URUS) for B50 who have been impacted by COVID-19 pandemic.

The Prime Minister said, under URUS the people will benefit i) exemption of interest/profit for three months; ii) postponement of payment or moratorium and other choice including reduction in instalments for the period of two years to help manage the debts as a whole in line with their affordability and iii) giving support for development, education and advisory services to help manage the finance to be competent including adding income and getting other supports.

Ismail also emphasized that aids will also be given as a whole including personal financial plan that is suitable and based on individual financial affordability and taking into account all kinds of loans with the banks under their names.

“This is to ensure long term aids that are more meaningful to them who need to recover their financial situation at par with the economic recovery,” he said.

Meanwhile the government is also concerned on the social protection for B40 group. Through the 2022 Budget, among the improved social protection initiatives include Tenang protection voucher that has been raised to RM75; continue the Searching for Additional Job Allowance and increase the salary ceiling that is insured from RM4, 000 to RM5, 000 to improve the social security coverage for nine million workers that are protected by the Social Security Organisation (SOCSO).- Malaysia World News



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