KUALA LUMPUR – Parti Bangsa Malaysia (PBM) has called on the government to introduce an across-the-board moratorium for all bank loans following Bank Negara Malaysia’s recent decision to hike the overnight policy rate (OPR) by 25 basis points to 2.75%.
“While we understand the hike is in response to creeping inflation and is in line with what central banks in other countries are doing, the decision has also resulted in a more challenging environment for businesses to operate,” its president-designate Datuk Zuraida Kamaruddin said.
In a statement today, she said PBM leaders, including herself, had received numerous complaints from the corporate sector, particularly small and medium enterprises (SMEs).
“Many are facing cash flow difficulties and have barely turned their businesses around since April 1 when the country started to transition into the endemic stage,” she said.
Recently, the Associated Chinese Chambers of Commerce and Industry of Malaysia’s small and medium enterprises (SMEs) committee chairman Koong Lin Loong said each time the OPR is raised, there is a significant impact on SMEs.
Koong said SMEs are still in the post-pandemic recovery phase and businesses are now worried about their cash flow as borrowing will be expensive.
“During the pandemic, businesses slowed down and even totally shuttered to comply with the movement control order in the past two years, which depleted their financial reserves.
“Some companies are repaying their current outstanding loans out of their own pockets,” he reportedly said.
Koong said BNM is well aware of the situation the SMEs are facing as it has data that shows many companies restructuring their loan repayments.
“While all sectors of the economy have now reopened, we are still far from pre-pandemic levels.
“The war in Ukraine, disruption in the global supply chain, and climate change have only worsened the situation. This is inevitable considering Malaysia is a global trading nation,” said Zuraida, who is defending her Ampang parliamentary seat in the 15th general election.
She said they had also received feedback that many businesses had structured their loans on the assumption that the economy would rebound.
“But this does not appear to be the case as even the World Bank has recently revised Malaysia’s 2023 growth target from 4.5% to 4.2%.
“This is why we believe a moratorium can be a critical lifeline for businesses, particularly during such challenging times.
“Economists have validated the success of Malaysia’s moratorium plans in the past and I am sure it will have the same effect now.
“Furthermore, Malaysian banks have proven to be resilient, having made respectable profits even at the height of the pandemic. They are financially more than healthy enough to absorb any shocks that may arise due to the moratorium,” she added. – The Vibes, November 9, 2022
