PETALING JAYA: Banks have come under criticism for failing to respond positively to an appeal from businesses for help to recover from the current economic crisis.
At the same time, Bank Negara Malaysia (BNM) governor Datuk Nor Shamsiah Mohd Yunus (pix) has also been denounced for making excuses for the banking sector.
Business Survival Group adviser Datuk Ameer Ali Mydin pointed out that any move to help in the economic recovery process will not work if banks are reluctant to extend a moratorium on loan repayments.
He pointed out that businesses are not asking for the banks to write off the debts.
“They are just asking that they are not charged in interest for the extension,” he said.
“Unfortunately, it looks like we are talking to a wall at this point because Nor Shamsiah does not want to understand the predicament that these industries are in,” he added.
Ameer said Nor Shamsiah had likely responded to the appeal (for a full moratorium on loan repayments) “only at face value”.
Nor Shamsiah had earlier said that there would be “serious negative consequences” for banks and more difficulties for the people if such a request was acceded.
He said she should get to know the situation businesses are in before making comments.
“It is morally wrong that banks are profiteering from the difficulties of their borrowers to the tune of billions,” Ameer told news portal Free Malaysia Today over the weekend.
Ameer added that if banks extended another 30% in loans to struggling industries, it would promote cash flow.
“Opening the economy is one thing. However, we still need money to buy the goods for us to sell. And unfortunately, businesses are out of money.”
He said many businesses are on the verge of closing down or have already crumbled under the economic fallout of the Covid-19 pandemic.
He added that some micromanaging should be done to focus on those who have not been able to operate for the last 18 months such as the tourism, retail, and events sectors.
“These are the industries that desperately need help to stay afloat.”
Ameer said banks should also consider not charging interest for at least the next six months.
“This too should be focused on those sectors that are under financial distress. This is the time for bankers to look (within) themselves and do the industries a favour, sort of like a social service, so that we can pull through these difficult times.”
On the green light for the resumption of business for several sectors, Ameer said there were some discrepancies that should be ironed out.
“For instance, furniture shops and antique shops have similar business activities, but one is only allowed to resume business under Phase Two while the other is allowed to reopen under Phase One,” he said.
“Similarly, a sports equipment outlet is not that different from a toy shop. You can go to the sports store to buy a racquet, and you can buy a toy racquet from the toy store, so what’s the difference?”
Small and Medium Enterprises Association (Samenta) secretary-general Yeoh Seng Hooi said any relaxation to allow more SMEs to operate is a plus.
At the same time, he said business owners should ensure that standard operating procedures are strictly enforced.
Yeoh said allowing those in non-essential sectors to operate will have a larger economic impact than merely permitting dine-in at restaurants or shopping at retail outlets.
“We are pleased that SME like manufacturers, subcontractors, suppliers and exporters can now commence operations. These SME can support the recovery and contribute to employment and the nation’s gross domestic product.”
Source: https://www.thesundaily.my/local/business-groups-take-bnm-governor-to-task-over-unsympathetic-comments-JJ8209821