ALL eyes are on what is set to unfold after the blanket loan moratorium expires in September.
While it is comforting to note that the Malaysian economy is already on the path of recovery, it is still far from the pre-pandemic levels. After all, private non-financial sector borrowing in Malaysia is higher than the size of the economy. As of end-May, about 14.9 million individuals or 94.7% of the total labour force was employed, although the percentage has dropped slightly from 96.7% as at end-2019.
“Rather than the blanket moratorium that we have currently, banks should only provide relief to borrowers who are retrenched, experiencing pay cuts or those businesses that have witnessed a sharp drop in sales. In fact, banks have been actively engaging with their borrowers in making sure they require specific assistance.Alliance Bank, in reply to StarBizWeek’s queries, also says that it is ready to “extend payment relief assistance post-moratorium”.“Our goal is to extend repayment assistance to all our customers. We have made available various forms of payment relief assistance to help them weather this crisis, ” it says.
Over the next few months, AKPK expects more people to visit the agency, higher than the pre-Covid-19 levels. Before the outbreak, AKPK said it used to see counselling numbers of about 13,000 to 14,000 monthly. A corporate adviser says that there must be changes in how banks assess businesses that have applied for new loans.
One way, according to him, is for the government to shoulder the responsibility by taking over a portion of the debt, particularly the bad loans, from the banking sector.“We can follow the old rule book by reactivating Pengurusan Danaharta Nasional Bhd. We have done it successfully before, and we can definitely do it again, ” he says, although the decision should be made after evaluating the banking system’s conditions in the next few months.
As part of its RM250bil Prihatin stimulus package, the government has introduced a RM50bil guarantee scheme or the Danajamin Prihatin Guarantee Scheme for large businesses to raise working capital.
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