Restore loan moratorium now for Sabah businesses, employers’group urges govt

 

With Sabah’s east coast and west coast under the movement control order, more than 40,000 businesses are likely to suffer further due to hampered market activity.

KOTA KINABALU: Sabah employers have urged the government to immediately restore the loan repayment moratorium for the business community as most of the state is expected to come under partial lockdown soon.

Sabah Employers Association president Yap Cheen Boon said liquidity was key for any business to survive.

With both the state’s east coast and west coast, which he said were key contributing economic areas of Sabah, under the movement control order, more than 40,000 businesses would suffer further due to hampered market activity.

“With the bank loan moratorium ended prematurely, pressure to pay wages and bills despite greatly reduced revenue will push many businesses to the brink,” he said when contacted.

“So, it is imperative that the state government strive without delay to get the moratorium back for October to next March.”

Yap said this was to help individual and business borrowers to ride through Sabah’s dire circumstances, seen to be worse than that in the peninsula.

“This is on top of crucial assistance such as automatic wage subsidy for October to December and cash payout to the B40 group to ensure that everyone subsists,” he said.

The federal government previously announced that four east coast districts in Sabah – Lahad Datu, Tawau, Kunak and Semporna – were placed under the targeted enhanced movement control order (TEMCO) from Sept 29 to Oct 12.

Also, Kota Kinabalu, Penampang and Putatan will be placed under the conditional movement control order (CMCO) from midnight tonight.

Yap said the partial lockdown was a necessary post-election measure but it would unfortunately inflict a heavy toll on Sabah’s fragile economy.

“Last year, Sabah’s economy was almost stagnant with up to 10% businesses closed down, and unemployment at levels unseen since 2005,” he said.

“This year, we have seen many months of stasis, and just when things are slowly picking up a notch, these movement control orders could be the proverbial final nail for many bosses.

“The lack of leadership with the new government is certainly not helping, when they have been looked upon to seek immediate rescue measures from the federal government.”

Three districts under CMCO

Only taxi and e-hailing services will be allowed to operate in Kota Kinabalu, Putatan and Penampang when the CMCO starts tonight.

Sabah Commercial Vehicle Licensing Board (CVLB) chairman Chin Kim Hiung said food delivery services were also permitted to operate in these areas from Oct 7 to 20.

“Operation hours for taxis and e-hailing services are from 6am to 8pm daily while food delivery services will be from 6am to 6pm,” Chin said in a statement here today.

Other public transport services such as mini buses, express buses and charter vehicles will be halted until Oct 20, he said, adding that they were also barred from entering the three districts during this time.

Chin also said the Sabah CVLB office would be closed during this period and that all passengers and taxi and e-hailing drivers must comply with the SOPs stipulated by the relevant authorities. - FMT