Malaysian government encouraged purchasing homes, cars, etc ...and even allowed workers to take out money from the Employees Provident Fund(EPF)
And, as a result many Malaysian workers have to repay these loans - where payment is expected by our Malaysian banks every month.
The fact that one has been retrenched, or have lost their job is immaterial - banks will still insist on these monthly payments.
What the Malaysian government can do is to urge banks to allow flexibility with regard these monthly bank loan payments for workers who have been retrenched. Without income, most workers will not be able to meet their financial obligations.
The Malaysian government should ensure that banks will allow retrenched workers the ability to not make these bank payments, or alternatively be able to pay 25% of the amount payable until the retrenched workers gets another job...
Minister warns of retrenchments till 2017, says look for work in other fields
“The government cannot force employers to employ if the boss has no money to pay their workers. “Like it or not, they have to be retrenched. Try to look for other job elsewhere,” he said when asked about the government's contingency plans in view of possible retrenchments in the oil and gas sector.