Opposition MPs call for automatic moratorium on loans and wage subsidies to save jobs in Malaysia’s current MCO | Malaysia

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Opposition MPs have said the automatic moratorium on loans, similar to those introduced during the first MCO last year, can eliminate anxiety and bureaucracy almost immediately. – Reuters photo

KUALA LUMPUR, January 23 – Opposition MPs urged the government to implement an automatic moratorium on loans and a six-month wage subsidy in a bid to save jobs affected by the current second order of labor controls. movements (MCO).

MPs, collectively from the PKR, DAP, Amanah, Warisan, New Sarawak Party as well as the still unregistered Malaysia United Democratic Alliance (Muda), said the automatic moratorium on loans, similar to the one introduced in the first MCO last year can remove anxiety and bureaucracy almost immediately.

“SMEs and individuals who are not affected can continue to repay their existing loan.

“A six-month moratorium on automatic loans will improve the economy’s cash flow, thereby creating economic activity. Both individuals and SMEs will have more cash at their disposal, which in turn will help improve the bottom line for all businesses, encouraging them to keep and perhaps increase employment (instead of cutting jobs) for let them go through this pandemic, ”MEPs said. in a joint statement today.

MPs also call on the government to increase the Social Security Organization (Socso) wage subsidy from RM 600 per worker to a higher amount (for those earning less than RM 4000) and extend it by at least six months.

“The current RM600 subsidy for just one month is insufficient because the after-effects of MCO 2.0 and the Emergency are still unfolding for some sectors.

“A six-month wage subsidy will go a long way in encouraging employers not to resort to layoffs and will help them get through half this year as they face declining sales and cash flow. For some, it may also encourage them to start recruiting again, ”MEPs said.

The deputies also said that the 15 billion RM Permanent recovery plan which was announced on Jan. 18 is simply not enough to address the issues – such as unemployment and the economic crisis that Malaysia is facing right now.

“It’s an extraordinary time. The government should take extraordinary measures to save jobs.

“The full consequences of rising unemployment can hurt the nation in a way that no future stimulus package can help.

“The government of Perikatan Nasional has already lost to our ASEAN neighbors in their competitiveness in attracting foreign investors due to incompetence, inefficiency and political instability. The further denial and stubbornness to do more for the business sector is one more nail in the coffin of our bleeding economy, ”said MPs.

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