MCO: Public servants' repayment of housing loan continues - Ismail Sabri

Senior Minister (Security Cluster) Datuk Seri Ismail Sabri Yaakob has clarified that the repayment of housing loans by civil servants under the Public Sector Housing Financing Authority (LPSSA) has to continue despite being under the Movement Control Order (MCO).

He said this was decided after observing that civil servants still receive salaries despite being on leave compared to affected groups such as B40 traders.

"About the housing loan, I believe it has been announced and answered that government servants are still receiving normal salaries, unlike those with no salaries like banana fritter sellers who were unable to open their business.

"Hence, they are aided by the grant (under the stimulus package) but government servants, despite being on leave, continue to get their salaries as usual. I believe the ministry has given its reply on this.

“That is among the reason the repayment of government housing loans has to continue as usual,” he said in a press conference here today.

In fact, Ismail Sabri added, the government has announced that RM500 incentives will be given to every civil servant under grade 56.

Previously, the Congress of the Union of Workers in the Public Service (CUEPACS), among others, has called for the government to suspend the repayment of government servants’ housing loans under the LPPSA.

Its president, Adnan Mat, requested that the measure be taken in conjunction with a six-month delay in lending or a moratorium by banking institutions in the country.

He added that the COVID-19 pandemic situation also affected public servants' household incomes where an average of 20 per cent was deducted with housing loans and other loans.