SHAH ALAM - The government should provide moratorium for all bank loans following Bank Negara Malaysia's (BNM) decision to increase the overnight policy rate (OPR) to 2.75 per cent.
Parti Bangsa Malaysia (PBM) acting president Datuk Zuraida Kamaruddin said even though the OPR increase represented the response towards inflation and was in line with the central banks in other countries, the decision has given a negative impact especially towards the business sector in the country.
"PBM leaders including myself have received many complaints from the corporate sector, especially the small and medium enterprises (SMEs) over the matter.
"Many are facing problems of cash flow even though the country is transitioning into the endemic phase since April 1," she said in a statement on Wednesday.
The OPR increase announced by BNM on Nov 3 was the third time in a row since May.
Zuraida said even though all economic sectors were opened again, the country was far from the pre-pandemic situation and the economic uncertainty as well as global politics could further worsen the situation.
She said even though many businesses had structured their loans with an assumption that the economy would recover, recent developments indicated that the economy was expected to face several challenges in the near future.
She said the World Bank recently revised Malaysia's growth target for 2023 from 4.5 per cent to 4.2 per cent.
"This is why we believe that the moratorium given could become a critical lifeline for businesses especially in challenging times such as now.
"Economists have confirmed the success of Malaysia's moratorium plan before and I am sure that it will bring the same benefits now.
"Malaysian banks have proven to be resilient and some have made good profits even at the peak of the Covid-19 pandemic," she said.