KUALA LUMPUR: The Young Entrepreneurs Organisation Malaysia (GMB) has urged the Finance Ministry and Bank Negara Malaysia (BNM) to extend the six-month loan/financing repayment moratorium to cover all financial service providers regulated and licensed by the central bank.
The automatic deferment package announced yesterday, which takes effect for six months starting April 1, is only being offered by licensed banks, licensed Islamic banks and prescribed development financial institutions.
GMB president Agil Faisal Ahmad Fadzil said today the association wants companies such as car/motorcycle hire purchase firms, AEON Credit Service, BMW Credit and licensed moneylenders to be included under the automatic moratorium.
“This is important as many people have monthly instalment commitments with such institutions. A clear example is that 90% of motorcycle owners are from the B40 and M40 groups, and they borrow from AEON Credit which is not subject to the automatic moratorium order,” he said in a statement.
Nonetheless, Agil Faisal welcomed the genuine effort by the government to help and views the six-month moratorium period as providing some room and opportunity for small entrepreneurs to formulate a strategy for their businesses without harassment from financial institutions.
“Entrepreneurs should use this period of calm wisely to rebuild their business,” he counselled.
Yesterday, BNM announced the temporary deferment of loan or financing repayment obligation (principal and interest) for six months to provide relief for individuals and small and medium-sized enterprises facing financial constraints due to the Covid-19 pandemic. – March 26, 2020, Bernama