UMNO today lashed out at the Housing and Local Government Ministry (KPKT) for allowing community credit companies and licensed money lenders to operate during lockdown.
“Is this how the Government plans to help our struggling rakyat? By getting them to borrow money? You dare call this a responsible way to revitalise the economy?
“Pushing an already desperate community into debt is not only irresponsible but also immoral,” its deputy president Datuk Seri Mohamad Hasan said in a Facebook post.
Three days ago, Bernama reported KPKT as saying that the National Security Council (NSC) has given green light for community credit firms or licensed money lenders to operate with immediate effect.
Following this, KPKT said community credit companies or money lenders need to apply for permission to operate through the International Trade and Industries Ministry.
“The companies will only be allowed to operate after obtaining approval through the CIMS system,” KPKT was reported saying.
Use reserves to help your community, local councils
Unimpressed with the decision, Mohamad Hasan said the Government should be offering various economic aid to the people during lockdown period, not pushing them to money lenders.
As for KPKT, he urged the ministry to use reserves parked in local councils to establish an intervention programme to aid the people directly.
“Many local councils are sitting on huge reserves and they should prioritise the people’s wellbeing, not being too focused on township development alone,” he retorted.
The Rantau state assemblyman added that the people were already taking loans from licensed money lenders to survive, with petty traders closing down due to poor business turnover.
“These borrowers are struggling to pay off the loans taken with huge interest rates. The Government should be helping the people out of their predicament, not make it worse,” Mohamad Hasan remarked. – June 26, 2021
