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Moratorium? Exemptions from interest payments instruction from MoF. Not for everyone yeah.

Moratorium? Exemptions from interest payments instruction from MoF.

First of all, moratorium as per what Malaysian banks are providing is definitely not something common despite Covid-19 affecting every country in the world. Second of all, I do not agree that banks are forced to provide interest exemptions. Banks are also profit-oriented entities and they are not charities.

Do remember yeah, the richest man in the village can surely afford to pay for meals for everyone in the village once every week if some unforeseen circumstances forced everyone to be out of job. After paying for the meals, he will still be the richest man in the village but this does not mean he should be forced to pay for everyone’s meal yeah.

Of course, some may require more assistance than others, so if it’s to assist the really badly affected ones for this time, I think banks who remain profitable may have to step in and do something for the badly affected ones.

Article in The Ministry of Finance (MoF) has instructed banking institutions to work on the exemption from interest payments for recipients of the bank loan moratorium immediately. 

Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz (pictured) said in a statement today that this will involve recipients of the moratorium from the bottom 50% of all Malaysians, in terms of income classification, for a period of three months in the fourth quarter of 2021 (4Q21).

Beyond this, Tengku Zafrul said the Cabinet ministers had approved a proposal to table amendments to the Temporary Measures for Government Financing (Covid-19), which entail raising the ceiling limit of the Covid-19 Fund to RM110 billion from RM65 billion previously as well as increasing the statutory limit of federal government debt from 60% to 65% of gross domestic product (GDP). Do read the full article here: Article in

Just enjoy, for those who will get it

It’s okay. If you are under the moratorium currently and you get the interest exemption, just enjoy it then. I do think the banks will be just fine when they report the next quarterly results. As long as the economy recovery speeds up, they may report even higher earnings even after giving this interest exemptions.

Just remember that it is an unprecedented move during an unprecedented time. Always do our best to keep our financial house in order because ultimately, it depends on us too and not whether the banks could offer moratorium again in the future. Take care and always continue to follow SOPs even if Selangor is showing very good signs of recovery from Covid-19 cases.

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Charles Tan The Founder The Writer Kopiandproperty
Charles Tan

Charles is Founder of He writes from his investment experience for the the past 20 years in investments including property, stock, unit trust and more as well as readings and conversations with many property gurus in the industry. is an independent property blog which is not affiliated to any media company, property developer or even real estate agencies.

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