Kuala Lumpur, 15 November 2020 – The Malaysian Association of Tour and Travel Agents (MATTA) expresses great concerns on the failure of credit and leasing companies to extend loan moratoriums as advised by the Prime Minister.
“According to a media report, about 10,000 bus operators are currently owing up to RM3 billion of debt in total. Bus operators have had no business since March, yet they are still required to make repayments to the credit and leasing companies.”
“It is ironic that despite being in the business of lending and leasing, credit and leasing companies are not regulated under BNM. It has been more than 6 months that the tourism industry, in particular the coach operators, have been highlighting this issue, yet to date no proactive action has been seen taken to tackle this serious issue,” added Tan.
“This matter had previously been brought up in March 2020 when we received complaints from our members that leasing and credit companies have created their own rules and practices in respect of moratoriums on repayment of loans instead of applying the directions issued by Bank Negara Malaysia.”
“Sadly, none of the relevant ministries directly involved such as Ministry of Domestic Trade, Ministry of Housing and Local Government, Ministry of Transport nor the Ministry of Finance, have shown any interest in resolving the predicament of the tourism industry which up till this pandemic had consistently contributed significantly to the growth of the GDP and wealth of the nation.”
“Astonishingly, the Budget 2021 provided for sales tax exemption for purchase of new coaches without acknowledging the reality that many of these coach owners have and will default in repayment obligations and their buses, coaches and vans may then occupy the yards of credit and leasing companies. MATTA sees no effort and measures in the proposed budget to address these and other industry issues. Failure to address the issues and concerns of the tourism sector will greatly affect the intended tourism restart in the near future in 2021 and may lead some parties to conclude that the government views the industry as dead in 2021.”
Tan greatly appreciates the efforts of some YBs that have assisted to raise this particular issue in the current Parliament session before it becomes a hopeless situation for the tourism industry.
“MATTA views the failure to place credit and leasing companies under the purview of BNM or other authority during this pandemic specifically on the moratorium issue has resulted and added to the misery of the tourism industry. In the last 8 months of facing the COVID-19 pandemic, tourism vehicles stand idle with no movement and revenue. Despite the credit and leasing companies being aware of the dire and desperate situation of the tourism industry, MATTA has received some reports from its members that credit and leasing companies have insisted on not extending moratoriums. In short, we are being told that they have turned a deaf ear,” lamented MATTA President Datuk Tan Kok Liang.
“It is high time for the government to regulate these credit and leasing companies under the provisions of the Financial Services Act or other relevant legislation.”
“Meanwhile, MATTA also requests the Government to consider appropriate and necessary action to ensure that the actions of credit and leasing finance companies are in line and compatible with the welfare, public interest, and good order of the nation during this time of unprecedented crisis,” concluded Tan.
DATUK TAN KOK LIANG
Term 2019 – 2021
For further information, contact:
MATTA Communications Department, firstname.lastname@example.org or 03-9222 1155.