Include SMEs in Three-Month Loan Interest Relief, DAP Told in Putrajaya | Malaysia

KUALA LUMPUR, October 4 – DAP called on the government to include small and medium-sized enterprises (SMEs) in the three-month moratorium on interest-free loans for borrowers, saying the group has been hit hard by the pandemic.

He said by the government’s own admission that in July, SMEs suffered a total loss of RMB 40.7 billion in 2020 and that some 580,000 companies, representing 49% of the sector, are at risk of bankruptcy. by October 2021 if the economy has not fully reopened and they are not allowed to operate by then.

“We are now in October and the economy still has not fully reopened. The government should realize that nearly one million SMEs representing 98.5 percent of all business establishments employ 7.3 million Malaysians in 2020, or 48 percent of national employment.

“Since a complete reopening of the economy will probably not take place until next year, the interest waiver should also cover SMEs to save them from an impending collapse,” said its general secretary Lim Guan Eng. in a press release.

Lim said the waiver is one of the main requirements of the memorandum of understanding between the government and the opposition.

He said there could be no delay in implementing the moratorium because Finance Minister Datuk Seri Tengku Zafrul Abdul Aziz acted swiftly by asking banking institutions on September 14 to work on the exemption.

However, one of his deputies Yamani Hafez Musa later said the government finds a viable solution to implement a moratorium on interest-free loans for borrowers and is still in talks with financial institutions as this involves a decision. commercial between the banking departments.

“There is a need for the winners of the Covid-19 pandemic and economic recession to help those who have lost their jobs and businesses and are struggling to find work or survive.

“One of the winners is the banking sector, whose profits continue to rise thanks to struggling companies and SMEs. The banking sector should learn to share after recording after-tax profits of 32.3 billion ringgit in 2019 and over 23 billion ringgit in 2020 despite the economic recession and is expected to do well this year, ”he said. he declares.

“There is a need for the winners of the Covid-19 pandemic and economic recession to help those who have lost their jobs and businesses and are struggling to find work or survive.

Lim also suggested a further reduction in interest rates of at least 2% for SMEs in the tourism industry, which suffered the most during the pandemic.

“The country has recorded over RM500 billion in economic losses since the first total lockdowns were imposed last year. The most affected sector is the tourism sector with 130 billion RM losses in 2020 and even higher losses are expected this year.

“Even if the government is not considering interest rate waivers, there should at least be an interest rate cut of at least 2 percent for this besieged industry,” he said. .