SMALL-BUSINESS PLAYER BANKS ON PN GOVT TO REINTRODUCE BLANKET MORATORIUM

By Sharifah Pirdaus Syed Ali

KUALA LUMPUR, Feb 28 -- The moratorium on loan repayments extended by financial institutions, an initiative introduced by the Perikatan Nasional (PN) government has been a tremendous help for individuals and businesses in cushioning the impact of the COVID-19 pandemic.

Since taking the helm in March 2020, Prime Minister Tan Sri Muhyiddin Yasin and his Cabinet were presented with great challenges over the health crisis that was debilitating the economy, locally and globally, and devastating livelihoods. 

Malaysia’s six-month automatic blanket loan moratorium which came into effect on April 1 and ended on Sept 30, 2020, was valued at RM89.6 billion as at Sept 11, which benefited businesses to the tune of RM31.4 billion and individuals, RM58.2 million.

This was followed by targeted assistance for another six months, ending in March this year for those who were still in a dilemma.

Consulting firm business owner and director of A+I Design Sdn Bhd, Wan Ainon Zuraiha Wan Abdul Khalid said the enforcement of the movement control order (MCO) to curb the spread of the pandemic in March last year, had caught most business operations unprepared.

“Most businesses were not able to operate except for the essentials. Construction which my company was involved in was among the last to be allowed to continue operation.

“Blanket moratorium initiatives introduced by the government was definitely something individuals and small and medium businesses like us hailed most, as we were struggling to find sources to sustain the running of our business as well as to keep the wellbeing of those under our employment,” she told Bernama.

A Royal Institution of Surveyors Malaysia councillor, Wan Ainon said although the amount varied, depending on the financial commitment of the individuals and businesses with financial institutions, in general the measures had provided them with breathing space and to stay afloat while planning and strategising their next move.

Meanwhile, founder and principal consultant of Ironhorse Asia Sdn Bhd, Stan Singh-Jit recalled that retail traffic was tremendously diluted during the MCO, impacting retail businesses.

“We saw purchasing power as no longer the same, as people were also very cautious in spending. For businesses we still have to take care of staff salary, rental and many more.

“Obviously, the moratorium had helped tremendously to spare their cost and cover for expenses. Although not the whole bunch but without it the business could fold,” he said.

He added that via the Malaysia Retail Chain Association, of which he is secretary general, engaging with the government, such as Ministry of International Trade and Industry and Bank Negara Malaysia was also helpful as they had been very understanding and listened to calls in addressing various issues.

Moving forward, he hoped the government would reintroduce the blanket moratorium in light of the extended MCO as the targeted moratorium is ending in March this year.

“Automatic blanket moratorium is most preferred option rather than individual applications for targeted assistance due to difficulties faced by businesses to apply for loans in terms of processing.

“Many companies are also facing problems with the interest levied by the banks as some interest were calculated differently,” he said.

-- BERNAMA