Business guilds: Pemerkasa Plus not enough, we want automatic moratorium

 

Malaysia's key business guilds have banded together in a coalition to demand that the government facilitates an automatic and blanket bank loan moratorium.

They want this moratorium to last until Dec 31 - or when the country achieves herd immunity against Covid-19 - whichever comes later.

They are also demanding that the moratorium should cover all personal facilities, accrues zero interest, charges are waived and an opt-out system is adopted, similar to the first movement control order (MCO) period.

The coalition - known as the Moratorium Untuk Rakyat initiative (see below for the full list of signatories) - said the government's latest stimulus package (Pemerkasa Plus) was lacklustre in the people’s needs for loan moratorium.

They argued that "no one has been spared" from the Covid-19 pandemic and all should be eligible for the moratorium.

"This will, in turn, allow all Malaysians in need and in financial distress to navigate through a pandemic that has been coming in waves. We are yet to see the end of it," the coalition said.

Failure to implement a blanket loan moratorium, they warned, would cause irreversible damage.

Banks, they argued, were in a good position to grant the loan moratorium because firstly, they had been bailed out before, during the 2008 and 2009 financial crisis.

"We feel that the banking sector must take a moral stand and step up when the country is in crisis," Moratorium Untuk Rakyat said.

Secondly, the group said the top eight local banks collectively made a profit of RM93 billion over the last three years.

"This new moratorium (that we are proposing) will likely 'cost' only RM6.4 billion, which is only seven percent of their three-year annual profits, or 20 percent of their 2020 profits," the group argued.

Putrajaya's Pemerkasa Plus package provided very limited scope for bank loan moratoriums, where only those who lost their jobs, categorised as B40 or businesses that were forced to shut down during the "total lockdown" period.

Finance Minister Tengku Zafrul Abdul Aziz, a former top executive in the banking sector, has been unsympathetic to pleas for a blanket moratorium.

He argued that a moratorium would entail compensations and reduce the earnings of public funds. He also argued that forcing banks to do so would erode confidence in investors.

Currently, most Malaysians are forced to stay at home because of the two-week "total lockdown" period imposed since June 1.

There is no certainty that the "total lockdown" would be lifted on June 14. When this "total lockdown" was imposed, the number of active Covid-19 cases was 80,474. As of yesterday, the figure was 79,848.

As of two days ago, slightly under 12 percent of the adult population has received their first Covid-19 vaccine dose.

This is the full list of signatories for the Moratorium Untuk Rakyat:

Bumiputra Retailers Organization Malaysia

Dewan Perniagaan Melayu Malaysia

Federation of Malaysian Business Associations

Gerakan Ekonomi Malaysia

Industries Unite

Majlis Tindakan Ekonomi Melayu

Malaysian Association of Theme Parks & Family Attractions

Malaysian Associated Indian Chambers of Commerce and Industry

Malaysia Retailers Association

Malaysian Tourism Council

National Union of Bank Employees

Movement for Monetary Justice Malaysia

Persatuan Pengguna Islam Malaysia

SME Association of Malaysia

Agro Association

Arts, Live and Festival Events Association (ALIFE)

ASEAN Air-Conditioning and Refrigeration Association

ASEAN Chamber of Commerce & Industries

ASEAN Retail-Chains & Franchise Federation (ARFF)

Association of International Certified Aesthetician

Association of Tourism Attractions Penang (ATAP)

Association of Wedding Industry Malaysia (AWIM)

Association of Wedding Professionals

Association of Tourism Training Institute of Malaysia (ATTIM)

Batu Road Retailers Association

Branding Association of Malaysia (BAM)

Chamber of Socially Responsible Malaysia

Chinese Entrepreneurs Association of KL & Selangor

Council of Asian Fashion Designer (CAFD)

Dewan Perniagaan Usahanita Spa Melayu Johor

Digital Marketing Association Malaysia (DMAM)

Federation of Malaysian Fashion Textile and Apparel (FMFTA)

Federation of Malaysian Vegetable Farmers Association

Federation of Motor and Credit Company Association of Malaysia

Federation of Sundry Goods Merchant Associations of Malaysia

Federation of Livestock Farmers' Associations of Malaysia (FLFAM)

Fruit Association

Institute of Image & Cosmetology Industry

International Beauty Health and Education Association (IBHEA)

International Women Entrepreneurs of Malaysia (IWEM)

Ipoh Little India Traders Association

JCI Entrepreneur Metropolitan Kuala Lumpur

KL Tourism Association (KLTA)

Koperasi Kecantikan & Spa Trengganu Berhad

Kuala Lumpur & Selangor Fruit Farmers’ Association

Little India Klang Entrepreneurs Association (LIKEA)

Malay Wedding Portrait Photography Malaysia

Malaysia 3D Media Association

Malaysia Association of Professional Trainers & Coaches (MAPTaC)

Malaysia Association of Therapist Industrial Development (MATID)

Malaysia Association of Wellness Trainers (MAWT)

Malaysia Association Therapist Industrial Development (MATID)

Malaysia Budget & Business Hotel Association (MyBHA)

Malaysia Cross Border E-commerce Association

Malaysia Digital Chambers of Commerce

Malaysia Fish Industries General Association

Malaysia Foodstuffs & Toys Merchants’ Association

Malaysia Graduates Entrepreneur Association (PUGM)

Malaysia Hairdressing Association (MHA)

Malaysia Indian Youth Council

Malaysia International Exhibitions Association (MIEA)

Malaysia Kampungstay & Homestay Association (MKHA)

Malaysia Positive Psychology Association (MPPA)

Malaysia Promas International Business Society

Malaysia Retail Association (MRA)

Malaysia Saudi Business Chamber

Malaysia Singapore Coffee Shop Proprietors' General Association (MSCSPGA)

Malaysia Tea Association (MyTA)

Malaysia Watch Trade Association

Malaysia World Digital Economy Association

Malaysia Young Food Industry Entrepreneur Malaysia (MYFOODIE)

Malaysian Association of Convention & Exhibition Organisers and Suppliers (MACEOS)

Malaysian Association of Hotels (MAH)

Malaysian Association of Wellness & Spa

Malaysian Bakery, Biscuit, Confectionery, Mee and Kuay Teow Merchants’ Association

Malaysian Bumiputra Designer Association (MBDA)

Malaysian Footwear Manufacturers Association (MFMA)

Malaysian Franchise Association (MFA)

Malaysian Garments Marketers Association (MGMA)

Malaysian Gifts and Premium Association

Malaysian Hotel Owners Association (MAHO)

Malaysian Indian Association of Events

Malaysian Indian Goldsmith & Jewellers Association

Malaysian Indian Goldsmiths & Jewellers Association (MIGJA)

Malaysian Indian Metal Traders & Recycling Association (MIMTA)

Malaysian Indian Textiles & General Stores Association (MITA)

Malaysian Medical Association

Malaysian Muslim Wholesalers and Retailers Association (MAWAR)

Malaysian Sauce Manufacturers’ Association

Malaysian Spas Association (AMSPA)

Malaysian Textile Manufacturers Association (MTMA)

Malaysian Indian Muslim Chamber of Commerce & Industry (MIMCOIN)

Malaysian Official Designers Association (MODA)

National Association of Private Education Institutions (NAPEI)

85.Nilai Indian Business Association (NIBA)

Penang Chinese Chamber of Commerce

Penang Foochow Coffee-Shop Owners Association

Penang Little India Traders Association

Penang Spa Association (PenSpa)

Penang Wedding Professionals Association

Peniaga-Peniaga Kecil India, Seremban, Negeri Sembilan

Perak Indian Chamber of Commerce (PICC)

Perak Wedding & Event Professionals Association

Persatuan Anggun Menawan Malaysia (PAMM)

Persatuan Kecantikan & Spa Langkawi

Persatuan Kontractor India Malaysia

Persatuan Makanan Laut Proses Malaysia

Persatuan Pengusaha Jurugaya Rambut India Malaysia (MINDAS)

Persatuan Pengusaha Majlis Perkhawinan Malaysia

Persatuan Pengusaha Perlancongan Bumiputra Perak

Persatuan Pengusaha Restauran & Kafe Melaka

Persatuan Peniaga-Peniaga Kopi, Bar dan Restoran Petaling Jaya (PJCA)

Persatuan Peniaga-Peniaga Lebuh Ampang

Persatuan Syndrome Down Malaysia

Persatuan Usahawan Foodtruck Wilayah Persekutuan Kuala Lumpur

Persatuan Usahawan Maju Malaysia (PUMM)

Persatuan Usahawan Spa Kelantan

Persatuan Usahawan Spa Pahang

Persatuan Usahawan Spa Perak (SISPA)

Persatuan Wanita Bumiputera dalam Perniagaan & Profesyen (Peniagawati)

Persatuan Wawasan Wanita Bumiputra Sarawak (SARANITA)

Pertubuhan Kebajikan AZZ

Pertubuhan Masyarakat Mahir & Dinamik Malaysia

Pertubuhan Pengusaha Bunga-bungaan Cameron Highlands

President of McMillan Woods Global

Persatuan Pengusaha Restoran Muslim Malaysia (PRESMA)

Persatuan Pengusaha Restoran India Malaysia

Private Practitioners Society, Malaysian Medical Association

Sarawak Federation of Coffee Shops & Restaurants Association

Selangor & Kuala Lumpur Stationery and Bookseller Association

The Malaysian Association of Tour and Travel Agent (MATTA)

The National Tech Association of Malaysia (PIKOM)

United Asian Hairdressers Association (UAHA)

Wedding Professionals Association of Malaysia

- Mkini