KUALA LUMPUR, Sept. 9 -- Bagan MP Lim Guan Eng has formally submitted a 12-point proposal to Prime Minister Datuk Seri Anwar Ibrahim aimed at promoting economic prosperity and strengthening national unity ahead of Malaysia Day.

In a hand-delivered letter yesterday, the DAP adviser proposed RM25 billion in interest-free and collateral-free loans for 500,000 micro, small and medium enterprises (MSMEs), alongside a one-year interest moratorium on their existing bank loans.

"The banking industry can afford to bear the cost of the interest moratorium on existing MSME loans for one year," he said.

Lim estimated that financing the interest-free loans would cost RM1 billion annually at a 4 per cent interest rate, citing the banking industry's ...