Target loan moratorium to bring price stability and keep businesses afloat

Datuk Sim Kiang Chiok

By Adrian Lim

KUCHING, July 31: The targeted loan moratorium extension announced by Prime Minister Tan Sri Muhyiddin Yassin two days ago will help to stabilise prices of goods and services besides keeping businesses afloat.

Sarawak Housing and Real Estate Developers Association (Sheda) Kuching branch chairman Sim Kiang Chiok said the targeted loan moratorium would bring price stability and prevent certain businesses from closing down.

“The targeted loan moratorium would help to stabilise prices where there will be less bankruptcies, liquidation, less properties being auctioned, reducing the negative spiral of the economy and might help the country to avert recession or even depression.

“Loan moratorium with reschedule and restructure (R&R) (payment) may have to be extended including the wage subsidies if this (Covid-19) pandemic cannot be controlled for our economy to run without interruption of the outbreaks.

“Apart from the R&R of loans, banks have given commitment to assist businesses including payment of interest only for bank loans for a set time frame.

“This is a good method to reduce the burden of loan commitment for the borrower and also for bank that do not have to lend out again with the repaid capital in the current poor and weak market condition,” he said in a statement.

Sim believed that with the second and possibly the third wave of the Covid-19 looming coupled with no vaccine which could be available the soonest next year, business is not going to be back as usual until then.

Nonetheless, he also believed Malaysians will welcome the targeted loan moratorium announced by Muhyiddin.

He said those who have lost their jobs and getting salary cut will have a sense of relief as their financial burden from the repayment of loans were temporarily solved.

Sim, who is also a director of Sim Swee Yong Development and Construction Sdn Bhd, believed that the small and medium enterprises (SMEs) would also benefit from the targeted loan moratorium as financial institutions had given their commitment to assist them as well as individual borrowers.

He believed assistance extended to SME and individuals are equally welcome and will help businesses to stay afloat during the current time of battling the Covid-19 pandemic.  —DayakDaily