Pressure banks to help small businesses in these unprecedented times, says MP

Pressure banks to help small businesses in these unprecedented times, says MP

Khoo Poay Tiong says the government saved banks from bankruptcy during the 1997 financial crisis and it is now time for the banks to help save businesses.

The government has assisted SMEs and micro businesses to help them survive the pandemic, the deputy finance minister said.
KUALA LUMPUR:
Putrajaya has been asked to explain why it is not pushing commercial banks to help small businesses with loans so that they can avoid bankruptcy.

Khoo Poay Tiong (PH-Kota Melaka) said banks should not reject applications based on cash flow, business viability or high debts.

“We are facing a pandemic. For sure all businesses will face these problems. That is why they go to the bank for help,” he said at the Dewan Rakyat.

Saying the government interfered to save banks during the 1997 financial crisis, he asked: “Why can’t the government interfere now to make sure banks help businesses from going into bankruptcy?”

Earlier, deputy finance minister Yamani Hafez Musa said most of the applications were rejected by banks due to weak cash flow, high debts and business viability and added that the government had told banks to ease loan requirements.

He also said businesses that failed to get loans could seek advice and assistance from the Credit Counselling and Debt Management Agency.

Earlier, Yamani said assistance from various stimulus packages had been given to small and medium enterprises and micro businesses to help them survive during these unprecedented times.

This includes “billions in cash aid” to SMEs and other sectors under various measures such as special relief facilities, targeted relief, and recovery facilities.

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