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PETALING JAYA: Cuepacs has urged the government and Public Sector Home Financing Board (LPPSA) to defer housing loans taken by civil servants.

Adnan Mat, the president of the umbrella body for civil services unions, said the reasoning that current and retired civil servants still receive full pay and pensions to cover their monthly expenses was no longer relevant.

This was because more than 50% of the spouses of civil servants were either in the private sector, running small businesses or full-time housewives.

“Some of them have lost their jobs, had their incomes affected and can no longer do business following the continuous implementation of the movement control order since last year,” he said in a statement.

Adnan said most civil servants applied for LPPSA loans by submitting joint income statements with their spouses for approval.

With a moratorium on housing loans for government workers, he said, those involved would have additional income to rearrange their family expenses and help others affected by the pandemic.

He said other government agencies such as the National Higher Education Fund Corporation (PTPTN), public service department (JPA) and Mara had also implemented the moratorium.

Private banks have also deferred loan payments despite private sector employees being paid in full.

“Cuepacs feels that the LPSSA should not reject the moratorium on the grounds that the salaries of civil servants and government pensioners are still being paid in full.

“The pandemic, which has plagued the country for over a year, should open everyone’s eyes to stand in solidarity with the people,” he said.

Source: https://www.freemalaysiatoday.com/category/nation/2021/07/01/defer-repayment-of-civil-servants-housing-loans-says-cuepacs/