MAJLIS Amanah Rakyat (Mara) chairman Datuk Dr Asyraf Wajdi Dusuki, revealed that non-performing loans (NPL) borne by the agency have now reached 49.6 per cent, amounting to RM893 million, forcing them to take strict action, including lawsuits against those who have still failed to pay.
According to reports in Berita Harian, he said that Mara will not compromise and will refuse to entertain any loan applications from borrowers who send letters using the names of certain VIPs to avoid repaying the loans given to them.
He said that currently, vigorous efforts are being made to collect the debts by Mara's subsidiary, Rural Capital, in an effort to reduce the NPL percentage, so the money can be used to help others.
"I am not ashamed to reveal that the NPL percentage of Mara has now reached 49.6 percent, which is a very large amount. We are now tracking down the borrowers to recover the money and resolve the issue.
"We will not compromise with them, no more 'love letters' begging to have the debt erased even if they use the names of prominent people. This money is the people's money, not Mara’s," he told BH yesterday.
As of October, last year, 97,866 out of a total 197,348 active borrowers were blacklisted.
Blacklist action
The blacklisting action is imposed on borrowers who do not repay their loans within three months and is limited to the Mara management only, without involving other agencies.
Recently, Asyraf Wajdi's term as Mara chairman was extended for another two years effective March 1, after the appointment letter was handed over by the Deputy Prime Minister and Minister of Rural and Regional Development, Datuk Seri Dr Ahmad Zahid Hamidi.
Asyraf Wajdi said that to address the NPL issue, he has directed the empowerment to be carried out at three levels of the agency, involving assessment, monitoring, and enforcement.
He said that the measure is important to achieve the NPL target of below 30 percent, reported Berita Harian.
"If we look at Amanah Ikhtiar Malaysia (AIM), the NPL rate is only 0.08 percent; followed by Tabung Ekonomi Kumpulan Usaha Niaga (TEKUN) Nasional at 9.6 percent, but 49.6 percent for Mara is something sad," he said.
Meanwhile, Asyraf Wajdi said that borrowers who are late in making loan payments are initially given a warning notice to settle the loan immediately, and if the loan arrears reach four months, their names will be blacklisted.
"Actually, it's not just their names that are blacklisted, but it also involves the names of the guarantors for the loan.
"This causes both of them to be barred from enjoying all the facilities provided by Mara, including their children being unable to apply for the Mara Junior Science College (MRSM).
"If they still defy the payment instructions, stricter actions will be taken, including legal action in court.
"This is important to send a clear signal that Mara is serious about recovering the money and not to put Mara's debts at the bottom of the list," he said.
He added that Mara needs funds to help others, but the attitude of borrowers who deliberately evade repaying their debts undermines such efforts. - February 20, 2025
