The case for an automatic six months loan moratorium

EMIR Research would like to refer to our "Exit Strategy Building Blocks for Malaysia – Part 1" where under goal number two of extending social and business safety nets, the first objective is loan moratorium for all micro, small and medium enterprises (MSMEs), B40 as well as M40 households while targeted for other individuals for at least three (3) months or 50% loan payment reduction for six (6) months.

However, the overwhelming uptake and benefit to the many in the backdrop of a potentially grave economic outlook suggest this to be extended to six months of automatic blanket loan moratorium.

The aim is to provide a safety net to those at risk due to the shutting down of economic activities and prolonged unemployment.