KUALA LUMPUR, April 1 – This is no April Fool’s joke! Makcik Kiah, Muthu, Ah Lian and other Malaysians start to have their loan payment holiday from today.
While most Malaysians are staying at home under the Movement Control Order enforced by the government to prevent the spread of COVID-19 virus, they will not have to pay their loans with the banks for 6 months from today in accordance to Bank Negara Malaysia’s announcement on March 24.
The loan moratoriums will not require borrowers to contact their banks as it will be done automatically, according to an FAQ released by the Central Bank last week.
A moratorium is a temporary deferment or suspension of loan/financing repayment obligation (principal and interest) for a limited period of time.
During this period, borrowers/customers with loan/financing that meet the conditions do not need to make any repayment, and no late payment charges or penalties will be imposed.
Interest/profit will continue to accrue on loan/financing repayments that are deferred and borrowers/customers will need to honour the deferred repayments in the future. Loan/financing repayment resumes after the deferment period.
Having said that, most major banks have announced that the interest/profit will not be compounding during the moratorium period.
Among those banks are RHB Banking Group, Public Bank, CIMB Bank, Affin Bank and OCBC.
Loan moratoriums for Malaysian cooperatives
At the same time more than 14,000 Malaysian cooperatives will also enjoy loan moratoriums for loans taken from Cooperative Development Revolving Fund (TMP-JPK) under the Companies Commission of Malaysia (CCM). Ministry of Entrepreneur Development and Cooperatives (MEDAC) announced a six-month moratorium on loan repayments from April to September 2020 earlier last week. The moratorium is estimated to involve about RM99 million.
Minister Datuk Seri Dr. Wan Junaidi Tuanku Jaafar said in a statement that the government through MEDAC is very concerned about the impact of the spread of Covid-19 on the business activities of the 14,628 cooperatives in Malaysia, which could impact more than 6 million cooperatives members nationwide.
Bantuan PRIHATIN to reach B40 and M40 Malaysians
Another no April Fool’s joke today is that 80% Malaysians of regardless of race and religions will start receiving Bantuan PRIHATIN in April and May.
For the B40 or those with household income of RM4000 and below, will receive RM1000 in April and another RM600 in May.
For the M40 or those with household income between RM4001 to RM8000, will receive RM500 in April and RM500 in May.
Bantuan PRIHATIN RAKYAT was announced by the Prime Minister, Tan Sri Muhyddin Yassin on March 27.
Taxi and e-hailing drivers cash handouts
As part of Bantuan PRIHATIN, taxi drivers will receive a one time cash incentives for RM600,
At the same time, e-hailing drivers will receive RM500, both can expect the incentives to be given out in April.
Medical frontliners will receiving an additional RM200 to their cash allowances in dealing with the pandemic.
This amount is on top of the earlier announced RM400 making it a total of RM600 for the medical frontliners.
Discounts on Electricity bill
Malaysians will also enjoy between 15-50% discount in electricity bills, depending on their usage (the more usage the less discount).
“The rebate will be reflected in electricity bills beginning May. Under the tiered rebate, three million domestic consumers (monthly consumption below 200kWh) will receive a 50 per cent rebate; while 1.5 million consumers (monthly consumption between 201kWh and 300kWh) will receive a 25 per cent rebate; and another 2.2 million consumers (monthly consumption between 301kWh and 600kWh) will receive a 15 per cent rebate,” the Prime Minister said.
Other benefits such as moratorium on payments for Rent-To-Own houses, free rentals for Federal public housing will also commence this month.