KOTA KINABALU: The government has been urged to implement an automatic three-month extension to the loan moratorium for businesses in Sabah following the ongoing conditional as well as targeted enhanced movement control order (MCO) imposed in the state.
The Dewan Perniagaan Melayu Malaysia (DPMM) Sabah chapter said while they welcomed the earlier announcement by Prime Minister Tan Sri Muhyiddin Yassin to allow the extension by applying with banking institutions, the situation in Sabah needed to be treated differently.
After the initial loan moratorium period ended on Sept 30, businesses can apply for an extension of the moratorium or a reduction of repayments with their respective banks.
“We are facing a worrying trend of increasing cases of Covid-19 hitting the country, particularly in Sabah where movement restrictions are imposed in districts declared as red zones (with only essential businesses and services operating).
“Therefore we urge the government, especially the Finance Ministry, to provide automatic moratorium extension to entrepreneurs, especially small and medium enterprises (SMEs) in Sabah until December 2020 without having to apply with the banking institutions.
“If implemented, the government should ensure all the banking institutions and licensed financing companies adhere to it, ” said DPMM Sabah head Datuk Awang Sham Amit in a statement on Monday (Oct 12).
he said the automatic extension will provide relief for SMEs badly affected by business premises closures and having to bear the monthly costs when their incomes are impacted.
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