PETALING JAYA: The government appreciates the efforts of the banking sector in continuing to support and assist borrowers facing financial difficulties by restructuring the loans of defaulters, says the Prime Minister.

       Datuk Seri Ismail Sabri Yaakob said the government has also taken note of efforts shown by banks to not hastily blacklist those who faced difficulties.

       “Banks should continue assisting borrowers facing financial difficulties repaying their loans and defer legal action against defaulters.

       “Borrowers who still need assistance are advised to immediately contact their respective banks to discuss appropriate restructuring and rescheduling options.

       “Although the bankruptcy rate has dropped by 50% after the economic sector began to open up gradually since last October, the Malaysian economy will take time to fully recover,” he said yesterday.

       He said borrowers, especially those in the B50 low-income group, who are still finding it tough to get jobs, should be supported as much as possible.

       “At the same time, the government through the Malaysian Insolvency Department has increased the bankruptcy threshold to RM100,000 to provide protection to those who may still be unable to survive financially due to the effects of the pandemic.

       “To support the B50 community, the banking sector together with the Credit Counselling and Debt Management Agency (AKPK) is actively implementing the Financial Management and Resilience Programme (Urus) for eligible borrowers affected by the pandemic.

       “Some of the benefits under Urus include deferment of loan payments or a moratorium. Other options include instalment reductions for periods of up to two years to help manage overall debt.

       “Apart from the Urus programme, borrowers can still apply for other forms of assistance from the respective banks appropriate to their needs and financial situation,” he said.

       Ismail Sabri said for micro-entrepreneurs, RM1.8bil has been allocated through Tekun Nasional, Bank Simpanan Nasional and Agrobank to provide financing at zero percentage rate for at least six months; for loans up to RM75,000; and an immediate moratorium of between six and 12 months, subject to terms and conditions.

       “The government notes that there are still many people, especially in the B40 group, who still need support. In this regard, under Budget 2022, the government’s efforts to ensure the well-being of the people are comprehensive.

       “These include an allocation of RM8.2bil for the Malaysian Family Assistance; RM2.4bil for assistance under the Social Welfare Department; RM450mil for early schooling assistance; RM400mil for supplementary food plans including daily milk supply for poor children; RM450mil for the Malaysian Family Student Device initiative; and RM4.8bil for the MySTEP Job Guarantee and Training programme to provide 600,000 job opportunities.

       “Through Budget 2022, the improvements in social protection initiatives include the Tenang protection voucher facility which was increased to RM75; continuing the additional Job Seeker Allowance and increasing the insured salary ceiling from RM4,000 to RM5,000 to improve social security coverage for the nine million workers covered by the Social Security Organisation,” he said.