PETALING JAYA, June 29 (Sin Chew Daily) – Economic analysts are of the opinion that the six-month loan moratorium announced by the government under the national recovery plan offers the most direct assistance to companies and the people, while the salary subsidy program (PSU 4.0) will help prevent more layoffs.

However, they feel that the loan moratorium should be automatically implemented instead of requiring companies or individuals to apply for the facility.

K-Konsult Group chief executive Koong Lin Loong told Sin Chew Daily the automatic loan moratorium should offer the biggest and most direct assistance to companies and those in the M40 group whose biggest expenses are car and housing loans.

"Disappointingly, SMEs will still need to apply for the facility which is not automatically implemented."

He feels that the government should allow companies that cannot operate during the current lockdown to automatically enjoy this facility so that they can retain sufficient cash flow to last them over the next six months.

He said the loan moratorium and PSU 4.0 program will help companies avoid closing down or laying off workers and will offer the most direct assistance to people in B40 and M40 groups.

Another local analyst Phua Lee Kerk said the six-month loan moratorium should last until the fourth phase of the national recovery plan.

He said as the country continues to be placed under lockdown, the government can only provide financial assistance to help local businesses and the rakyat through this crisis.

"This is the best form of assistance for local companies," he said.

Phua described the M40 as the most miserable group of people because the government has previously launched plenty of assistance packages for the B40, although many in the M40 group actually have heavier expenses compared to the B40, such as their daily expenditures and children's education.

"There is a limit to what the government can do to help the M40. Other than loan moratorium, the best it can do is to provide one-off financial assistance.

"Anyway, loan moratorium should be the most practical help for the M40."