The Non Performing Loans Will Get Worse

 

• KL (Feb 5): impaired loans creeping up every month in 4th qtr 2020 
• after loan moratorium ended Sept 30
• NPLs reached 9-year high of RM28.7b end-2020
• RM24.9b in Sept 2020 NPL rose to RM25.7b in October 
• RM27.8b and RM28.7b in Nov and Dec respectively
• ratio of NPL to total loans rose in tandem 
• 0.84% in Sept 2020 to 0.87% in Oct, 0.95% in Nov and 0.99% in Dec
• household sector, wholesale, retail, restaurants, hotels noticeable upward 
• after blanket loan moratorium ended in Sept
• Rising NPLs paint bleak picture of economic recovery

My comments:

Well what else can we expect to happen? 

The question now is what are the correct things to do to turn around the economy?  With the Corona Virus still hanging around.

We have to work smart and fast.  We cannot shutdown the construction sites. But that is where the virus has also spread. 

Where exactly at the construction site does the virus spread? At the cement mixer under the boiling sun? When they are laying bricks? Or when the Indon fellows are digging holes with the cangkuls?

Or is there a higher risk when the construction workers gather for lunch inside their tiny sheds? Or when they sleep at night squeezed inside a tiny space? 

We dont have to shutdown the construction sites but there must be changes to reduce the risk of the virus spreading too easily. There must be stricter hygiene, good airflow (aeration) in their sleeping quarters and eating places. To reduce the virus spreading too easily.  

The factory workers spread the virus in their cramped dormitories (culprit no 1 ok). Those are the 'critical points' too. Lets target on improving the conditions at the cramped dormitories. There is no need to shut down the factory. Those who are positive isolate them. Those who came into contact quarantine them. But dont shut down the factory.

The Minister does not understand. Before he said the chicken farm can operate but the egg tray manufacturers must close. How to transport the eggs?

May I suggest a simple solution - just talk to the chicken farmers, talk to the factory operators, talk to the supermarket owners.

How can we work together? It is not difficult.   

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.