Loan interests charged by banks during moratorium should at cost level, says MCA Youth leader

PETALING JAYA: Loan interests charged by banks during the moratorium period should be at cost level and without profit, urges an MCA Youth leader.

Federal Territory MCA Youth vice-chairman Chris Daniel Wong says banks should have the heart to help the people, especially small and medium-sized enterprises (SMEs) in these trying times.

“SMEs and the rakyat are not asking for free loans.

“What most businesses desire now is not interest-free loans, but for interests to be charged at cost level, without bank profit during the moratorium period,” he said in a statement on Saturday (Aug 14).

Wong was referring to a statement by Bank Negara Malaysia governor Datuk Nor Shamsiah Mohd Yunus that a full interest waiver during the loan moratorium period can result in serious negative consequences for banks in the long term and more difficulties for the people.

Last month, the central bank introduced a six-month moratorium for all individuals, microenterprises and affected SMEs.

Wong said the contribution of SMEs to our national Gross Domestic Product was 38.9% in 2019.

“There are over 960,000 SME-type businesses in Malaysia, which employ more than 7.5 million Malaysians.

“Despite being the backbone of the nation, this sector is collapsing fast.

“They are unable to pay staff salaries and office and premise overheads, let alone pay the exorbitant loan interests the banks demand,” he said.