LANGKAWI – Seven civil society groups are urging the government to impose a blanket loan moratorium on small and medium enterprises (SMEs) on Langkawi island to help salvage its tourism industry.
In a joint statement, the seven groups said Langkawi’s reputation as a tourism hub may be fade by next year unless the authorities step in to save some 2,000 enterprises.
They also suggested Langkawi be allowed to accept tourists from green zones under a redefined conditional movement control order (CMCO).
Organising chairman Loke Seng Chye said the blanket moratorium involves granting SMEs waivers on business permits, licencing fees and discounts on utilities.
He added that individually, the SMEs can renegotiate with their financiers to repackage their loans as there are hardly any tourist arrivals due to the CMCO that bars interdistrict travel.
“We need as much help as possible to stay afloat. Hardly anyone planned for an extended lockdown that took away up to 10 months of income. There are businesses closing every day.
“Although temporary, it has affected their cash flow, and many are saddled with debts from loans, wages and overhead costs.”
He said the moratorium should be applicable at least until the end of next year.
The groups are Malaysian Association of Hotels (Kedah and Perlis), the Langkawi Businesses Association (LBA), the Malaysian Hotel Owners Association, Malaysian Travel and Tour Agents Association, Langkawi Tourist Guides Association, Langkawi Chinese Chamber of Commerce, and the Ferry Line Venture Consortium Sdn Bhd.
They said they have told Langkawi MP Tun Dr Mahathir Mohamed about their plight.
LBA deputy president Datuk Alexander Isaac said collectively, SMEs on the island employ up to 10,000 people, and workers will be drastically affected if the 2,000 businesses cease operations.
“Budget 2021 may offer individuals some breathing space, but the tourism industry rues the lack of incentives to, firstly, rehabilitate their businesses and, secondly, find ways to bring back the desired number of tourists.”
If the businesses close even temporarily, the momentum to reopen takes time, and may take from weeks to months, said Alexander.
He urged the authorities to help ease the businesses' burden.
Among the worst-hit are travel agents, landmark operators, accommodation providers, car-rental, water-sports and sea-cruise operators. – The Vibes, November 20, 2020
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