KUALA LUMPUR (July 30): CBRE | WTW group managing director Foo Gee Jen applauded the government’s decision in granting an extension of the bank loan moratorium, saying it was a “sensible and necessary” announcement.
In a special address, Prime Minister Tan Sri Muhyiddin Yassin announced that a three-month extension will be given to individuals who lost their jobs amidst the pandemic.
Meanwhile, individuals who suffered a pay cut will be entitled to a rebate in their instalments in correspondence to the amount of salary loss.
For hire purchase, banks are encouraged to allow for renegotiation of longer repayment term.
Additionally, small and medium enterprises (SMEs) will be offered the options of interest servicing and restructuring of repayment term.
“The moratorium extension to individuals, coupled with the downward revisions of Overnight Policy Rate (OPR), will inject the much-needed stability to the housing market as it essentially downplays the risk of default,” said Foo in a statement yesterday.
“This will mitigate forced or panic selling that could further distress the property market and restore certainty in terms of value for both the secondary market and the value of property in general,” he added.
Meanwhile, he said SMEs will now be accommodated with greater flexibility in their loan repayment structure.
“This is a timely relief for debt-reliant SMEs to, at least, be able to lower operational and asset costs. Those who are striving to move on can now afford more liquidity for financial manoeuvring as they restrategise and reinvest for future gains and bigger market share,” he said.
“The targeted extension of moratorium provides the breathing space for individuals who hold assets and cost of doing business for SMEs. Together with fiscal stimulation, this is a step in the right direction to revitalise consumption and investment activities that will ultimately keep the economy rolling,” he opined.
The six-month financial moratorium announced in April will expire in September.