Budget 2021: I want to hear the reply of the Finance Minister, not a bank manager - Anwar Ibrahim
Firdaus Azil
November 9, 2020 09:42 MYT
November 9, 2020 09:42 MYT
Anwar said the government should continue to give priority to the welfare of the people while the country is being squeezed by the COVID-19 pandemic problem. AWANI file pic
KUALA LUMPUR: The government needs to consider a moratorium expansion measure although it may lead to a decline in profits for the banking sector in the country, said Opposition Leader Datuk Seri Anwar Ibrahim.
The Port Dickson MP said based on the reports received, the profit of the banking sector each year is estimated at around RM30 billion, and the absorption of some costs to expand the moratorium will not reduce profits dramatically.
He added that a study found that not only the B40 group was severely affected, but also the M40 group has started to struggle with the costs that have to be borne every month.
"Try to see the bank's profit… it has no burden. Profit before tax in the first quarter of 2020 was RM8.5 billion. The second quarter was RM8.3 billion. Profit for 2020 is expected to be RM30 billion.
"And the banks have no burden whatsoever. Is it not possible to further expand the moratorium because of the ones who are facing problem is the B40 group? But now the M40 group is struggling, and many of them will go down to B40. If they are still M40, they are M40 who are struggling with financial pressure," he added.
Anwar who is also Pakatan Harapan chairman said this while debating the Supply (Budget) Bill 2021 in the Dewan Rakyat today.
Datuk Seri Saifuddin Nasution Ismail (PH-Kulim-Bandar Baharu) when he got up to interject said he was almost sure that Finance Minister Tengku Datuk Seri Mohd Zafrul Tengku Abdul Aziz during the winding up later, would answer that the government should take into account the liquidity problem.
"I am almost certain that the Finance Minister will say if the moratorium period is extended, the problem with banks is that their principal activity is giving debts. So, if the loan is not repaid in the name of the moratorium, the banks will face liquidity problems.
"That is their core business. And that, to the rating agency, will affect the banks’ rating, and also the banks' commitment to shareholders, " he added.
Answering the question, Anwar said, the government should continue to give priority to the welfare of the people while the country is being squeezed by the COVID-19 pandemic problem.
“I want to hear the reply of the Finance Minister, not a bank manager. The figures mentioned, exposure, say it is 5 per cent. That is only RM2.6 billion compared to the RM30 billion profit of the banking sector,” he added.
Continuing the debate, Anwar also expressed concern over the increase in development expenditure (CapEx) in the 2021 Budget, which is RM69 billion.
He said there would be no problems if mega projects like the Pan-Borneo Highway were continued but it could be considered if the scale was reduced first.
He added that it would be better for the increase in development expenditure to be segregated and included in the COVID-19 Fund.
“I propose that the RM19 billion allocated to the Development Fund, must be transferred and corrected in order to solve the unemployment problem, as well as some small activities related to tourism, education, digital facilities, computers for online learning and so on.
"The allocation announced as the COVID-19 Budget is not appropriate because it cannot address the problems of farmers, including rice growers, fishermen and large numbers of unemployed, or those asked to work from home but not given allowances such as electricity bills and internet,” he added.
#Anwar Ibrahim
#Pakatan Harapan
#Dewan Rakyat
#COVID-19
#2021 budget
#B40
#M40
#Mohd Zafrul Tengku Abdul Aziz
#Saifuddin Nasution Ismail