A STATEMENT by Bank Negara Malaysia (BNM) yesterday to slap borrowers with accrued interest for car loans is against earlier decision. The government had in Mac agreed to give a 6-month moratorium for hire purchase beginning April until September this year.

What’s more intriguing is the moratorium is no longer automatically given to all borrowers as in practice now. From today onward, borrowers must apply from respective financial institutions for deferment of loan servicing.

I am of the opinion that such a decision only favors the banking sector. Changing a policy just to fit into the interest of banking sector is not proper in light of the predicament faced by the people. It is very disappointing indeed.

The rakyat predicament on the hire purchase moratorium must be quickly resolved. The government is urged to find an amicable solution to it. Don’t burden the people already hit by income loss, pay cut, unpaid leave, lay off and unable to carry out their business.

This unnecessary stress over the government policy must be avoided. The government must be seen as benevolent enough during this hard times in combating the Covid-19 pandemic.

Bear in mind that besides the pandemic, the nation is poised for an economic crisis. Hence, any government policy must take into account the overall impact on all sectors of the economy and not to give attention on one sector alone.

I do hope the government will provide a tangible explanation soon and in simple words easy for the people to comprehend. All issues on financial strategy and loans are technical and may wrongly perceived, thus a simple and proper way of explanation is vital.

The people are looking at the best mitigation between BNM and the Finance Ministry as soon as possible. Make it into a win-win situation. Together we rebuild the nation.

Datuk Seri Dr Ahmad Zahid Hamidi
UMNO President