Why stop moratorium if banks are doing well with award bonuses, asks PKR's Nik Nazmi

Setiawangsa MP Nik Nazmi Nik Ahmad said it was odd that the government and banks, especially the Finance Ministry, insisted that the blanket loan moratorium in September last year be ceased given how well they seemed to be doing. — Picture by Shafwan Zaidon
Setiawangsa MP Nik Nazmi Nik Ahmad said it was odd that the government and banks, especially the Finance Ministry, insisted that the blanket loan moratorium in September last year be ceased given how well they seemed to be doing. — Picture by Shafwan Zaidon

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KUALA LUMPUR, March 26 ― PKR organising secretary Nik Nazmi Nik Ahmad has questioned the lucrative pay raises, bonuses, and incentives recently awarded to senior bank managers, pointing out that moratorium on loans and the lockdowns must not have affected banks’ at the bottom.

The Setiawangsa MP said it was odd that the government and banks, especially the Finance Ministry, insisted that the blanket loan moratorium in September last year be ceased given how well they seemed to be doing.

“Of course, it is not wrong for companies, even those linked to the government to reward the hard work of their employees and provide incentives, especially during an economic crisis. But the question is, are the raises directly linked to the banks’ performances?

“Clearly, they are showing healthy profits, but we cannot forget how highly regulated this industry is,” he said this morning.

He further asked what was the logic in ending the moratorium if they have been doing well even with it in place.

“All banks, especially for GLC banks that have a national mandate, should have more consideration for the people and not pressure millions of Malaysians to earn extra income in order to award bonuses for a select few,” he said.

Nik Nazmi called on both the Finance Ministry and the board members of banks to explain the situation, contending that many Malaysians were facing reduced incomes or losing their jobs during the pandemic and should not be burdened further.