(From left) Mona Abdul Manap, Alexander Frusis and Wan Norizzati Wan Fazli
KUCHING (July 1): Youths in the state welcome the National People’s Well-Being and Economic Recovery Package (Pemulih) announced by the government recently as they believed that it would help ease the people’s financial burden and boost the country’s economy.
A professional conference organiser Mona Abdul Manap, 36, said Pemulih is definitely a welcomed aid as any help especially to the most needy is critical at this time.
Stating that it could have been much better if more forward planning had been done in the beginning, Mona suggested for the government to look into whether or not Pemulih would help all levels of the society.
“We had more than a year of the pandemic. How much more time do we need to develop a comprehensive recovery plan for the country and our socio-economic predicament? The World Economic Forum published a study which described lessons from the Spanish Flu and one of the findings was that ‘early and forceful non-pharmaceutical interventions (NPI) did not worsen the economic downturn. Cities that intervened earlier and more aggressively experienced a relative increase in manufacturing employment, manufacturing output, and bank assets in 1919, after the end of the pandemic’.
“Had we put more research, thinking and expert input into our crisis management, we could be in a better position now just like Australia and New Zealand. We need to be more united and focused in our fight against this common enemy,” she pointed out.
On the loan moratorium, Mona said whether it is a targetted or blanket moratorium, it is crucial to keep individuals and businesses afloat during these few volatile months ahead.
“Of course, bankers are also looking at it from the macro-economic perspective and saying that the banks (and therefore public funds) may suffer if a blanket moratorium is given.
“However, everyone must understand that moratoriums will only reduce the profits of the banks and will not result in losses. On the other hand, being picky on who receives the moratorium may result in mental health issues (suicide is on the rise), crime, domestic violence, physical health issues due to stress and anxiety and many other health and social impacts.
“Who are we to say if a person is not eligible for the moratorium and therefore will not benefit? The 85 per cent of borrowers who resumed loan repayments after the first blanket moratorium is used to justify the fact that many can afford their loans and were just taking a free ride on the moratorium.
“But, has a research been done that perhaps these same people could fall under those who can’t afford loans anymore now that we’re well over a year into the pandemic?”
As for the Employees’ Provident Fund (EPF) i-Citra withdrawal scheme, Mona believed it is a stop-gap solution but a longer term plan needs to be put in place as these funds belongs to the employees.
It does not benefit those who do not have enough in their EPF accounts, and those eligible may not be able to recoup their savings post-pandemic, she said.
Instead, she hoped that there would be a robust economic plan to mitigate the on-going swelling of unemployment, personal and business debt and overall economic uncertainty.
For a contractor Alexander Frusis, 30, the incentives announced by the Prime Minister are very good and could alleviate the burden of the people whose income is affected during the Movement Control Orders.
“In my opinion, the government has listened to the voices of the youths especially regarding the loan moratorium and the I-Citra withdrawal. Moratorium and the I-Citra withdrawal are very appropriate steps to help the people, especially the youths.”
He said with the loan moratorium, the people do not need to pay their loan for six months thus giving them six months increase in disposable income which could be used for other important matters.
“We need to survive now and not to worry too much about later. It is all about survival for the both of the peoples and economy,” he said.
A student cum part-time worker Wan Norizzati Wan Fazli, 25, said the loan moratorium would help those who have just started working as they may not have enough savings to cover their car loans after taking a pay cut due to the pandemic.
“This means that they can instead money that is supposed to be used to pay their loans for daily needs and have some savings in case of an emergency, as most had already dug into their savings to sustain their lives.”
Wan Norizzati said It would also allow them to have some capital to start a small home business like making cookies or food for sale to earn extra income.
For a 38-year-old insurance agent who wished to remain anonymous, the introduction of loan moratorium and i-Citra are great news for the people.
“Although, a sound retirement fund is crucial for a comfortable lifestyle in the later part of our life, the continuity of life now is of utmost priority for those affected with the countless Movement Control Orders.
“I believe after we have passed this critical period, a rational retirement goal is achievable through prudent financial planning.”
For now, she urged everyone to play their part by showing empathy and kindness, and to be mindful of those around us that are suffering financially and emotionally.
On Monday, Prime Minister Tan Sri Muhyiddin Yassin announced the Pemulih aid package, which included a six-month moratorium to be granted to all individual borrowers and micro-entrepreneurs, regardless of their income bracket, and would be approved automatically after application.
Besides that, he also announced EPF would introduce the i=Citra withdrawl scheme, which would enable 12.6 million EPF members to withdraw up to RM5,000 with a fixed payment rate of RM1,000 a month for five months, subject to the balance in their respective accounts. i-Citra is a continuation of the previous EPF withdrawal initiatives known as i-Lestari and i-Sinar.