ASSOCIATION URGES GOVT TO PROVIDE AUTOMATIC MORATORIUM TO ALL BORROWERS
12 June 2021
By Wartawan Nabalu News
KOTA KINABALU: President of SME Association Malaysia Datuk Michael Kang said automatic bank loans moratorium that is interest-free without any condition should be provided in the period of six months to all borrowers, with immediate effect.
With the imposed Movement Control Order (MCO) 3.0, he said at least 40 per cent of small and medium enterprises (SMEs) would be affected and forced to terminate their businesses, while the rate of job losses will continue to rise.
"SMEs are in need of immediate help and this automatic moratorium is highly required to ease their cash flow.
"I believe with the emergency ordinance, there won't be issues to implement (automatic moratorium) as indicated by the Minister of Finance, even with objections from the banks," he said in a statement recently.
Kang disclosed that most SMEs are struggling to make ends meet with their resources slowly being exhausted while worrying about not being able to cope with their mortgages.
He also urged the government to speed up the national vaccination programme so that the Malaysian economy can be revived.