Pemerkasa Plus. Pay 50% or moratorium for 3 months? Which to choose?

We have the Pemerkasa+ being announced recently. If you like to know the full details, download the file at the end of this article. As this is, we focus on the real estate part yeah. Prime Minister Tan Sri Muhyiddin Yassin said that loan repayment assistance and a moratorium worth up to RM30 billion starting June 2021 will be given to people affected by job loss as well as micro-enterprises and SMEs which are not allowed to operate during the Movement Control Order (MCO). He mentioned that this will benefit up to 5 million people.

In essence, it’s a choice of NOT needing to pay any monthly repayment for 3 months or a 50% repayment for 6 months. What would be the choice for most of these affected businesses and people who lost their jobs? If you like to read an article, this is one in AstroAwani.

If we lost our job, opting for moratorium for 3 months may be a good option

We could use these three months to somehow get back a job as well as moving into a job which is in the industry allowed to operate. Here are all of them: These remain open 1st June to 14th June Without the need to pay a big home loan, we could at least survive with savings. This is not the time to add to the stress of trying to find enough money for food and enough money for our home loan. This may also be that time to strategize if we truly need that big car or a cheaper one or whether we need two cars or just one.

If we did not lose our job, paying just 50% for the next 6 months can be an option

Just remember that if we did not lose our job, we could also choose this 50% lower repayment for 6 months so that we could also conserve some cash for unforeseen circumstances. HOWEVER, we must not take this option if we are just going to use the savings to buy things online. We could also use this 50% savings every month and move it to some potential investments too. This is especially if the investment may have returns which are higher than the loan interest which we were paying currently.

These options are optional. It’s not compulsory.

If we look at just the unemployment numbers, we do realise the number is still high if we compare this to the few years before Covid-19 arrived. It’s 4.8 percent unemployment in March 2021. However, this number is not on a rising trend if we compare this to 6 months ago. In fact the number has started to stabilised and trending downwards albeit very slowly. Thus, if our job is intact, our salaries are still coming in every month, then there is really no need to choose between the two options.

The reason is simple, even the moratorium is merely an extension of the loan. It’s not a reduction of actual loan amount. Delaying it for 3 months, 6 months or 12 months simply meant our loan repayment duration has just been extended. So, only choose one of the two options if it’s truly necessary.

Other details of all the items in Pemerkasa?

Home Ownership Campaign is now extended. I think this will help tremendously as the exemption tries to do two things. To help developers sell properties and for buyers to save from the stamp duty which can be a big amount and may be a hindrance to buy.

For recipients who qualify. This payment will boost demand for goods and services. Good for multiplier effects.

Full slides for Pemerkasa+? Click here.

Vaccination Notice

Please register if you have not done so. If we do not protect ourselves we could not protect everyone else. The only way to lessen the effects of Covid-19 is through vaccinations. Many advanced countries have shown that this is the only way. In the UK, with sufficient vaccinations, the economy is now reopened and even football matches allow for spectators. Let’s aim to achieve this sooner rather than later.

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