The Sabah Employers Association says a six-month extension of the moratorium on loan repayments will allow businesses to get back on their feet.
“Now is the time for the government to show leadership in accepting that aggregated good necessitates small sacrifices,” he told FMT. He said extending the moratorium period another six months would allow the economy to recover as well as businesses to gain better footing and individuals and households to “breathe a little easier”.“Otherwise, without borrowers left, lowering the rates will be appealing only on paper.”
Yap said Sabah was seeing an unprecedented economic contraction of as much as 30%. He added that current unemployment figures had not reached such a level in 15 years. He also questioned the outcome for firms that were unable to give a recovery projection for banks’ budgetary assessments as a result of the uncertain economic climate.Sabah Small and Medium Enterprises Association president Foo Ngee Kee meanwhile voiced support for a selective moratorium, but not for the tourism and hotel industries.
He also urged banks not to use a lower set of requirements to grant extensions of the loan moratorium.