Business community wants extension of moratorium

GEORGE TOWN: The business community in Penang wants the Federal Government to extend the six-month moratorium on loans and financing repayments, which was implemented to help individuals and small and medium enterprises (SMEs) since April 1.

Federation of Malaysian Manufacturers (FMM) Penang chairman Datuk Ooi Eng Hock said based on the current economic performance, the extension would help businesses, especially SMEs.

“From what we observed, most businesses are not able to bounce back after the implementation of the movement control order (MCO).

“It is not possible for them to repay their outstanding payments in a month,” he said yesterday.

He said banks might not want another moratorium, but the government could advise banks or kick off another Prihatin Rakyat Economic Stimulus Package.

Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz said the government would hold talks with banks with regards to extending the moratorium.

But he said it would all depend on the banks whether to continue or not with the marathon.

Small and Medium Association Malaysia (Samenta) national secretary SH Yeoh said leaving it to the banks to decide on extending the moratorium would mean that it would be a case-by-case basis and not necessarily an extension.

“I think what you are seeing now is that the demand is still soft, people are still cautious. We would like to see more domestic spending, but it may take a while.

“The moratorium ends in September. It would be good if it can be extended until the end of the year at least,” he said.

Malaysian Indian Chamber of Commerce and Industry Penang president Datuk N. Gobalakrishnan said its members would welcome another round of moratorium extension by the government.

He said it would spurn domestic economy and let money flow within the country.

“For sure, our economy will grow and it won’t be a burden to SMEs,” he said.