After a spate of confusion and a rare Bank Negara apology, the air is cleared on the hire purchase moratorium.

Prime Minister Tan Sri Muyhiddin, during his speech on the stimulus plans put in place to soften the financial blow Covid 19 has fell upon Malaysians, announced a 6 month moratorium on all hire purchase loans. Effective April, those with car loans can opt to accept the break and continue making payment after the 6 months period. Many Malaysians welcomed the decision until questions were raised on the interest and additional charges banks were considering to impose during the period.

Minister of Finance, Tengku Zafrul then went on record requesting the banks and the Central Bank to waive any charges in order to ease the public’s burden. This has now been resolved with the new Government getting consent from all parties to not impose any additional fess or charges. Borrowers for conventional and Syariah hire purchase loans can continue their repayment as per contractual and add the 6 month moratorium to their total payment months.

Its good to see when it needs be, policies and hard set banking laws can be adjusted during emergency, we have a Finance Minister who is pro liberalisation.