Orang Ulu Chamber of Commerce and Industry (OUCCI) president Datuk Mutang Tagal
MIRI (Sept 30): The Orang Ulu Chamber of Commerce and Industry (OUCCI) has called on the federal government to waive not only interests for late loan payment but also suspend the penalty imposed on them or for non-compliance of statutory obligations.
Its president Datuk Mutang Tagal said the leeway was necessary to ensure the survival of small and medium enterprises (SMEs) as there are signs that many businesses are already behind their loan repayments and that the numbers keep increasing from the present 30 percent.
He said, therefore, that the group welcomed the recent announcement by Prime Minister Dato Seri Ismail Sabri Yaakob in Parliament that the federal government was considering waiving interest and other fees on the deferred loan payments.
“Over a longer term, the Chamber hopes the deferred loan payments should be extended to a full 12 months, “ he told The Borneo Post.
He said this will show that the government listens to the woes of the people and is sympathetic to their plight as the waiver will provide relief to individuals, corporations and business borrowers in the short term.
Mutang said banks and SMEs, as engines of growth of the national economy, have a symbiotic relationship and need each other to survive the unprecedented economic challenges unleashed by Covid-19 pandemic.
He said the government has a responsibility to ensure both parties survive and thrive.
“They provide jobs, income and livelihood for millions of people to feed their families during this pandemic especially the low income families, “ he said.
Mutang hoped that the two pronged strategy of the National Recovery Plan (NRP) to sustain and jumpstart the economy with its people-centric programmes will be given greater emphasis in Budget 2022.
He said SMEs should have the opportunity to taste the “low-hanging fruits” offered by Budget 2022 and the chamber hoped that the relevant government departments would not be harsh on SMEs by imposing penalties for late payments or non-compliance of their statutory obligations.
“Times are hard. Money is not easy to come by during this prolonged pandemic. So SMEs as the engine of growth for the country’s economic prosperity deserve to be supported and not harassed by the banks, and relevant government agencies,“ he said.