DAP Warns Of Grim Prospects If Moratorium Ends

KOTA KINABALU: The six-month moratorium on loan repayment should be extended so that industries severely hit by the Covid-19 outbreak, especially the tourism and hotel industry, can regain their footing.

Sabah DAP secretary Chan Foong Hin who made the call said many people and businesses were still very worried and not ready to deal with the days after Sept 30 when the moratorium ends.

“As more companies lay off employees, the unemployment rate will soar, and the market will be hit by another wave of financial impact after September,” he said.

“People who have been hit by unemployment, as well as businesses facing turnover problems, would need the urgent help from the government to continue stay afloat and not end up insolvent or bankrupt.”

Chan, who is Kota Kinabalu MP, said businesses had suffered losses as a result of the movement restriction on people to curb the spread of Covid-19.

“The global pandemic has hit the tourism industry severely. I call upon the federal government to extend loan repayment moratorium for another six more months from October onwards,” he said.

Chan said that such moratorium should be given in particular to industries that have been hit hardest by the pandemic and have yet to see improvement in their businesses, such as the hotel, tourism, and entertainment industries.

Chan added that these industries deserve special government attention.

“The Prime Minister had previously stated that the six month loan moratorium would involve a sum of about RM100 billion.

“However, according to the report of the Minister of Finance, as of June 19 this year, the amount of deferred repayment was only RM 47.5 billion, which is way below the announced spending. As such, I believe that an extension of the moratorium is very much appropriate and doable.”

Chan said this after attending a dialogue hosted by the Sabah Urban Development Corporation (SUDC) this morning with the management of Ming Garden Hotel and Residences, and the owners of its serviced suites.