Cash-strapped Malaysians make beeline for pawn shops

Many Malaysians who were strapped for cash made a beeline for pawn shops, which were allowed to open today, forming long queues.

Many netizens had reported this phenomenon on social media throughout the country.

A check by Malaysiakini in Petaling Jaya saw long lines at several pawn shops. One shop had about 30 customers lining up outside.

Freeman Tan, who operates a Pajaking branch in Petaling Jaya's old town, said most customers were pawning gold for cash.

He said most of his customers were low-income earners who had their livelihoods taken away during the movement control order (MCO) period.

Tan said he had prepared more cash today as he anticipated a surge in customers today.

"During the MCO period, many customers called and asked me to reopen my shop. They urgently need cash to survive," he said, adding that he had to turn those requests down.

Tan said some customers do not keep money in the bank and prefer to wear it in the form of gold, which they would pawn or sell when necessary.

Repayment periods extended

Although the government had allowed pawn shops to operate during the second phase of the MCO period, most stayed closed.

In early April, the association representing pawn shops had agreed to extend repayment periods for three months.

Pajaking is among the shops which are honouring the three-month extension.

Some customers told Malaysiakini they were still worried about losing their pawned items and decided to redeem it.

One customer, who wished to remain anonymous, said he pawned his ring and the due date was April 1. He wanted to settle the loan today and redeem his ring.

"I was in the delivery industry and worked during the MCO period. I can repay the loan," he said.

Another customer said her loan was due and came to pay interest and seek an extension to avoid forfeiting her item. She was unaware of the three-month extension.

Conflicting rules

Meanwhile, Tan said he was unaware that the pawn shop industry was not among those allowed to operate according to Selangor government rules.

The rules were uploaded on Selangor Menteri Besar Amirudin Shari's website at 10pm last night.

Tan was not alone. Many other businesses not in Amirudin's list were open in the old town vicinity.

Hong, 30, who owns a car wash, said there seems to be a lack of coordination between the state and federal government, which was causing confusion.

"I didn't receive any notice from the Selangor government. If they did so, I will just stop operating," he said.

Hong had only one customer this morning and is worried about the future of his business. As a precaution, customers are not allowed to wait in his premises.

A stationary shop owner, who wished to be known only as Kuok, said since school was suspended, his short-term business outlook was bleak. - Mkini