Malaysia and Malaysians have been suffering too.

Some families are so desperately in need of money that the government is now studying suggestions to allow people to withdraw money from Account 1 of the Employee's Provident Fund.

Better known as EPF, the money channelled to this fund is meant as savings for retirement.

According to a report by The Edge, Prime Minister Tan Sri Muhyiddin Yassin revealed this but said that withdrawals would only be allowed for certain people such as workers who were laid-off.

"I have discussed with the Finance Ministry and we basically agreed and are prepared to study the proposal for contributors who really need to withdraw allocations from Account 1," he said during an interview with Bernama.

Methods already set in place

Muhyiddin also said that the government had previously provided an option to reduce EPF contributions from 11% to 7%, and this option was taken up by almost 70% of EPF members.

"(There are) some who have contributions of less than RM1,000. Hence, EPF savings will not necessarily be able to address their cash flow problem.

"If they draw down then they won't have any savings for their future.

"However, the government is always ready to study the proposal to help the rakyat who are facing difficulties and truly need (the funds)," he said.

While it could be a welcome financial aid for those in dire need of money, it is also a frightening indication of how bad the situation has become in Malaysia.

If people start using from funds meant for retirement, they will have nothing to help them when they actually retire.

For those of you who don't know, Account 1 has 70% of the total contribution made by an EPF member.

Moratorium extension?

Additionally, the Prime Minister also said that the government was looking into calls to extend the moratorium.

"There's no other country that took the approach taken by Malaysia by offering automatic moratorium to all borrowers. This method has advantages in that it gives assistance to many, quickly," he said.

The effects of the moratorium extend beyond just the borrower though.

Yes, the borrower who opts for the moratorium may have more money in hand now but there are other consequences to it as well.

Because many borrowers opted for the moratorium, it has resulted in reduced funds being channelled to banks and in turn banks reducing funds for new loans.

He explained that this is why the government is turning to a more targetted approach on the matter.

Whatever the authorities decide, we hope that they keep the bigger picture in mind.