KOTA KINABALU: Employers in Sabah have appealed to Bank Negara to consider the financial position of borrowers in a quandary over the loan moratorium issue.
Sabah Employers Association (SEA) president Yap Cheen Boon said many workers were unable to cover their living costs, let alone service their loans.
He said with the Covid-19 situation having become serious, there were even employers in the state who were finding it hard to repay loans.
He said based on statistics provided, 640,000 borrowers from a total pool of eight million applied for repayment assistance nationwide on their loans from their respective banks.
Yap said the central bank should find out more from the data provided by banks, and on the other seven million over borrowers.
He said banks were claiming an 85.5% repayment rate since Oct 1.
Yap said the association knew of cases where appeals for moratorium extensions were still under review, but payments were deducted in early October.
“With no decision forthcoming, another deduction is looming in early November. It is not wrong to say that to allow deductions while applications are under review is self-defeating and demoralising, ” he added.
He appealed for the loan moratorium to be extended till the end of the year to ease the financial burden of workers and bosses in Sabah.
The six-month moratorium announced by the government ended on Sept 30.
It enabled millions of Malaysians to get temporary relief for loans totalling over RM66bil.
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