SMEs Need an Extension on the Loan Moratorium: Federation of Malaysian Manufacturers

Datuk Ooi Eng Hock, Northern Chapter Chairman of the Federation of Malaysian Manufacturers (FMM), has warned that up to 70% of Small and Medium Enterprises (SMEs) in Malaysia may not be able to meet their loan obligations without an extension of the loan moratoriums, set to expire in September 2020.

Datuk Ooi stated that this 70% would be able to facilitate payments only for another two months, after which the SMEs would be compelled to reduce operational expenses via staff retrenchment, reduced production, or forced closures.

With SMEs accounting for around 40% of Malaysia’s gross domestic product, Datuk Ooi urged banks to consider extensions of the moratorium. This request...