Borrowers must begin servicing their loans from October as the repayment moratorium will end as scheduled in September.
The loan moratorium, which is set to expire in September, won’t be extended despite calls to lengthen the tenure, said Tengku Zafrul Abdul Aziz.
Most businesses have already reopened and generating income, said the finance minister.
Most employees are also back at work and earning an income, he said.
“This moratorium will end at the end of September. With the opening of the economy on May 4, the people and businesses were earning money.
“There are also those who were already able to pay back their loans,” he told the Dewan Rakyat today during question time.
Tengku Zafrul was responding to Ahmad Maslan (BN-Pontian) if the moratorium would be extended beyond September.
The minister said borrowers should seek advice from banks on how to go about loan extensions or fee waivers.
“The next step upon discussion with the banks is more targeted aid. One example is to extend the tenure of the loans, so it reduces the monthly mortgage.
“Another example will be to amend the terms and conditions to reduce the duty imposed and other waivers until the borrower is stable,” Tengku Zafrul said.
He also suggested consumers meet with agencies like Credit Counselling and Debt Management Agency (AKPK).
The government also does not plan further cash injections, as the Prihatin and Penjana stimulus packages are already enough.
“This depends on the economic recovery process of the country. For the time being, we do not have plans to add to the Prihatin and Penjana packages,” Tengku Zafrul said.
The Federation of Malaysian Manufacturers (FMM) has called for the loan moratorium for small and medium enterprises (SMEs) and individuals to be extended a further six months.
Former finance minister Lim Guan Eng also urged the government to extend to save businesses and jobs.
The Star reported today that MIDF Research chief Imran Yassin Md Yusof predicted that non-performing loans would increase once the moratorium period was ended.
“Nevertheless, we expect the banks would have identified potential troubled borrowers and would have put a lot of effort in restructuring and rescheduling these potentially troubled loans and this may moderate the level of non-performing loans,” he said.
Bank Negara Malaysia also acknowledged previously that non-performing loans would “naturally” rise post-moratorium.
Economists previously said that they believed Malaysia’s banking industry was sufficiently robust to take an extension of the repayment moratorium, but they had suggested that this be targeted instead of automatic.