Long queues don’t mean people are pawning jewellery, say pawnshop owners

The Malaysia Pawnbrokers Association says long queues are inevitable due to the shortened working hours, the fewer number of people allowed entry at any one time and the need to maintain social distancing. (Bernama pic)

KUALA LUMPUR: There’s nothing unusual about the long queues at pawnshops, president of the Malaysia Pawnbrokers Association Tan Ho Keng said today.

He said the patrons were only attending to matters outstanding since March 18 when the movement control order (MCO) came into force to contain Covid-19.

With the outlets reopening under the conditional MCO after 47 days, the patrons were back to redeem their pawned jewellery, make interest payments, extend the period of the mortgage and a few to pawn some items, he added.

“Not everyone who goes to a pawnshop is mortgaging jewellery, just like not everyone who goes to an airport is taking a flight.”

The CMCO permits pawnshops to reopen for five hours on their working days, from 9am to 2pm.

“The number of patrons seemed huge yesterday because all of them were adhering to social distancing of staying one metre apart from one another.

“Only two patrons were allowed into the premises at any one time, compared with 10 previously,” he said in explaing long queues near pawnshops.

“Many of our clients wished to redeem their jewellery as Aidilfitri is approaching.”

Tan gave the assurance that an automatic extension will be given for pawned items which reach their maturity date anytime between March 18 and May 12. The CMCO will be in force until May 12.

A visit to the Ar-Rahnu Islamic pawnshop in Gombak, Selangor, found that many had come to extend the mortgage on their pawned jewellery.

Sharifah, 35, said she was unable to complete her business today because of the short opening hours.

“I came to pay the interest, which is three months’ overdue, on my gold bangles. I thought the outlet will be open as usual, but it is only up to 2pm.”

Many patrons in Kuala Terengganu said they were redeeming their jewellery after making i-Lestari withdrawals from the Employees Provident Fund (EPF). Others came to extend mortgages.

Nurul, 32, a private sector employee, said the i-Lestari withdrawal has come in handy as additional cash to pay the instalment for the gold bangles she had pawned several months ago.

Plumber Mahmud, 44, a father of four, said he was grateful for the CMCO as it has enabled him to pawn some of his wife’s jewellery for cash to spend for Aidilfitri or he would have to borrow money from relatives.

“We may not be able to return to our kampung but I want my wife and children to have a joyful Raya.”

In Ipoh, retired private sector employee Aziman, 65, said he had to queue up for more than an hour to redeem his wife’s gold chain.

A former hotel employee, Nurul Aini, 34, had used some of her savings to redeem bangles that she wished to wear for the upcoming Aidilfitri.

Bibi Safura Ghulam Hydar, 56, owner of Kedai Emas Safura, said the outlet had received many requests to mortgage jewellery during the MCO but only offered to buy them at the market price.

In Johor Bahru, Muhammad, 30, said he came to extend the mortgage because he did not want his jewellery to be auctioned off.

Accessory shop employee Shafinaz, 39, said she decided to pawn her jewellery because of the high price of gold so she could have cash in hand.

In Sungai Petani, two pawnshops were seen to have many patrons, but most of them had come to redeem their jewellery.

“The price of gold has risen. Perhaps, they want to redeem their jewellery to sell,” a pawnshop owner, who gave his name as Lee, said. - FMT