MTEM HOPES FOR LOAN MORATORIUM TO ENABLE MSMES TO RESTART

KUALA LUMPUR, Oct 21 -- The Malay Economic Action Council (MTEM) hopes the government can grant a moratorium for loans taken by micro, small and medium enterprises (MSMEs) to enable them to restart their business after the economy recovers.

Senior fellow Ahmad Yazid Othman said that otherwise, they would have to settle their bank loans first.

“They would not be able to use the funds to hire new workers, purchase raw materials and so on to kick-start their business. The government needs to understand this situation.

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"However, if the government cannot afford (to extend such a moratorium), it should at least give a targeted moratorium for working capital loans of, say, below RM1 million as well as vehicle loans of less than RM100,000,” he said on Bernama TV's Malaysia Petang Ini programme on the topic of “Pre-Budget 2022: MSMEs Want To Get More” today.

Ahmad Yazid said the MSMEs can use the cash flow to kick-start the economy.

“We need to have a revolving fund to help all entrepreneurs, particularly Bumiputera entrepreneurs, who have run out of savings and other funds, so they can kick-start operations in order to repay the loans owed to the banks. This will have a (positive) impact on all parties, including employees," he said.

Ahmad Yazid also welcomed the efforts by the Ministry of Entrepreneur Development and Cooperatives (MEDAC) to apply for an allocation of RM1 billion under Budget 2022 to focus on reviving MSMEs.

Its minister, Tan Sri Noh Omar, said on Monday that the application was discussed with Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz through the #Budget2022 engagement session recently.

Ahmad Yazid also suggested that the government expand the Wage Subsidy Programme to alleviate the burden borne by MSME companies amid the COVID-19 pandemic.

-- BERNAMA