PETALING JAYA: A prominent tycoon has urged banks to provide loan moratoriums to businesses in three sectors that are in dire straits because of Covid-19.
The sectors are tourism, retail and events.
Ameer Ali Mydin, the managing director of the Mydin chain of hypermarkets, said if the banks, which were still making enormous profits, refused to help, then the government must instruct them to do so.
“Banks are making huge profits, and yes, their profits have dipped, but look at the companies in tourism, retail and events. We are losing money, we cannot even break even.”
Ameer, who is an adviser to a loose group of 131 business associations called “Business Survival Group”, said loan moratoriums for the three sectors should be automatic.
“Those that do not need a moratorium can opt-out,” he said, adding the moratoriums should be for six months until after all restrictions had been lifted.
He said when companies were told to apply for moratoriums, there was the possibility that they would not get them.
“It’s not just the difficulty in getting a moratorium, businesses in these sectors are also telling us that banks are reducing their facilities and increasing their spread from 1.5% to 2%.
“Now is the time for them to support the industries which have been their customers all these years.”
Ameer said even though the economy was reopening, it was especially hard for the three sectors as business had been hit by restrictions.
“For restaurants, there are limits on the number of people allowed to dine-in, this means fewer customers. In the case of retailers, many malls and shops are still empty. It will take time to recover.”
He added it was worse for the tourism and events sector which had been crippled by travel bans and restrictions on activities involving mass gatherings and entertainment.
“A moratorium doesn’t mean we won’t repay what we owe, we just need help and compassion to get through a very difficult time.”
Source: https://www.freemalaysiatoday.com/category/nation/2021/02/25/have-a-heart-and-help-struggling-businesses-banks-told/