PETALING JAYA: Many businesses are facing difficulty in obtaining loans from licensed financial institutions in the face of a dampened economy, with some saying even loan sharks are more selective nowadays.
MCA Public Services and Complaints Department chief Datuk Seri Michael Chong said he had received complaints from businesses which were unable to get loans from licensed money lenders during the movement control order (MCO).
He said this could be due to them having to close during the MCO.
“Even illegal money lenders have stopped advertising their services since the start of the MCO because of the uncertainty in getting their money back.
“They are being selective by only lending money to those who have taken loans from them before, ” he said yesterday.
Chong said the loan sharks were being selective because of the limited movement due to the MCO which could hinder their debt-collecting rounds.
“Some loan sharks are also choosing to obey the MCO because it gives them the opportunity to stay at home with their families and to stay safe from Covid-19.
“This period of MCO might be the safest time for debtors to safely stay in their homes, ” he quipped.
Chong said as a result, many scammers were taking the opportunity to pose as money lenders to exploit desperate business owners.
“There are scammers now pretending to be ‘ah long’, ” he said adding that there were fewer options for businesses as many of the licensed financial institutions had to close in accordance with the MCO.
Chong urged the banks and other licensed financial institutions to be more lenient in approving loans, especially in the current economic climate.
He said small businesses were not able to hold out for a longer period compared to larger companies.
