KUALA LUMPUR, May 25 — Bukit Mertajam MP Steven Sim has questioned why banks in Malaysia cannot spend a fraction of their resources to extend loan moratoriums by another six months.

He said the rakyat were forced to spend RM78 billion collectively by dipping into their savings with the Employees Provident Fund (EPF) via its i-Sinar and i-Lestari programmes.

"Why is it so difficult for the banking sector to sacrifice RM6.4 billion in order to help the rakyat who are experiencing economic difficulties?” Sim said in a statement.

He noted that the RM6.4 billion figure is the reported estimated losses the banking sector experienced when it provided the six-month moratorium last year.

"In 2019, the sector as a whole recorded a profit of RM36 billion, and in 2020, despite the moratorium and subsequent targeted moratorium, the available data indicates Malaysia’s 10 main banks achieved profits of RM22 billion.

"As Malaysians are desperate enough to spend RM78 billion of their retirement funds, why is the government incapable of ordering the banking sector to spend RM6.4 billion in order to lighten the heavy burden of living amid the pandemic and economic recession?” Sim said.

He characterised the government’s refusal to order an automatic moratorium as clear proof that it prioritises the interests of banking tycoons, rather than the rakyat and small and medium enterprises.

"The situation has proven the rakyat is desperate enough, especially when they lack assistance from the government and must instead use their own retirement funds.

"Similarly, the government’s failure in handling the Covid-19 pandemic via the incoherent movement control order, double standards in enforcing the standard operating procedures has caused no end of trouble for the rakyat’s lives since March last year,” Sim said.