KUALA LUMPUR, Aug 29 — Following the extension of the recovery movement control order (RMCO) until the end of the year, DAP MP Lim Guan Eng has called on the government to inject a further RM45 billion in a stimulus package to save the economy.

The former finance minister also urged for an additional six-month loan payment moratorium, which he said may help eight million people.

"Things will get worse without a government’s stimulus packages, wage subsidies and bank moratoriums. It is clear that an additional RM45 billion is needed to be injected to the already existing RM45 billion fund (a total of RM90 billion) to save not only the jobs of Malaysians, SMEs but also manufacturers,’’ said Lim in a statement.

Lim said an additional six-month loan moratorium would only cost the bank some RM6.4 billion, and even if the banks could not afford the bill, the Bagan MP suggested that the government should instead bear the cost.

"An extension of the bank loan moratorium for another six months is also required. Eight million Malaysian individuals and companies have benefited from the loan moratorium which is valued at RM74.3 billion,” he said.

According to Lim, the banking industry can afford the moratorium as it has recorded a profit after tax of RM32 billion last year.

"How big is RM6.4 billion compared to the economic stimulus package amounting to RM295 billion especially when it can help eight million individuals and small businesses?” he asked.

Yesterday in a special announcement, Prime Minister Tan Sri Muhyiddin Yassin stated that the RMCO would be extended until December 31, 2020.

Last month, Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz said borrowers must begin servicing their loans from October as the repayment moratorium will end as scheduled in September.

He told the Parliament that banks will instead take a targeted approach in helping borrowers with restructuring their existing loans.

In March, Prime Minister Tan Sri Muhyiddin Yassin announced the six-month moratorium on loan repayments ending September 30, in order to relieve the burden of people who are directly affected by the impact of Covid-19 pandemic.

Loan repayments during this period need not be paid but borrowers that take up the scheme will accrue additional interest.