Search by : Pn. Marziati Md Din (Pegawai Kewangan)

Article by : Sri Ayu Kartini Amri

Source : https://www.hmetro.com.my/mutakhir/2023/05/964952/opr-bebankan-golongan-b40-m40-penganalisis

 

 

 

Kuala Lumpur: The increase in the Overnight Policy Rate (OPR) had a big impact that burdened the B40 and M40 groups because they had to allocate more of their salary income to pay off loans. 

 

Universiti Putra Malaysia (UPM) School of Business and Economics Associate Professor Dr Anuar Shah Bali Mahomed said that there are indeed positive effects of the increase in OPR, but many also receive burdensome effects due to this increase. He said that the parties that received a positive impact were the banks because through the OPR increase, the bank's income increased, as well as regular depositors because they received a higher rate of return as a result of the OPR increase. 

 

"Similar to the impact on investors who have the potential to earn higher returns and thus become an attraction for new investors to participate and save. 

 

"But at the same time, if we take it into account as a whole, the effects of pressure and burden are felt by more Malaysians," he said when contacted by Harian Metro today. 

 

He said the RinggitPlus Malaysia 2022 financial literacy survey found that 63 per cent of the 3,144 respondents aged 18 and above in the country could only survive for three months or less with their savings, while 70 per cent of respondents stated that they saved less than RM500 a month or did not save at all. 

 

"The Financial Stability Survey for the First Half of 2022 by the Financial Education Network Working Committee (FEN) involving 3,000 respondents among others found that 47 percent of respondents admitted it was difficult to provide emergency money of RM1,000 and only 20 percent were able to cover living expenses for a period of three months or more, if lost income."It consistently shows that Malaysians' savings are not at the expected level, at the same time they also have higher bank loan installment commitments," he said. 

According to him, during the presentation of the 2023 Budget, the government announced a reduction in the income tax rate for the income range of more than RM35,000 to RM100,000 by two percent which gives an excess of disposable income. 

 

However, he said, when the OPR goes up, then after this part of the excess income has to be used to pay the loan with the bank. He said, with the increase in OPR, the purchasing power of consumers will also decrease because consumers are forced to use their available income to pay higher monthly loan payments. 

 

"What is more distressing is that after the people allocate more of their income to pay off loans, they have to save more for other expenses and are faced with extraordinary pressure from the sudden increase in the price of goods. 

 

"In other words, when the purchasing power of consumers decreases, it will also affect the industry, especially Micro, Small and Medium Enterprises (PMKS) to breathe. 

 

"This is because some PMKS depend on the spending of local consumers who are forced to tie their stomachs because they are bound to allocate more of their income to pay off loans and manage the balance in spending taking into account the increase in the price of goods," he said. 

 

He thinks that Bank Negara Malaysia needs to study the effect of this OPR increase and how it really manages to control the country's inflation rate and not burden the people and the industry. 

 

"The question is, how will the situation be better when the people earn almost the same income and at the same time have to pay a higher loan rate and the balance of their income after deducting the monthly loan payment has to buy daily necessities that increase dramatically?"Rationally, of course there will be expenses that will be sacrificed due to the pressure that occurs from various angles. Finally, Malaysians who fall into the trap of not following the loan repayment schedule will continue to increase. 

 

"Thus, borrowers who are faced with difficulties in making loan installment payments should apply for Scheduling or Loan Restructuring with the bank or contact the Credit Counseling and Management Agency (AKPK) to obtain guidance and guidance in solving the borrower's financial management," he said.