How has the lack of loan moratoriums impacted bus operators since March?

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Bus Operators Face Financial Strain Due to Unextended Loan Moratoriums

Since March, bus operators have experienced a significant financial downturn due to the lack of extended loan moratoriums, compelling them to continue repayments despite having no business operations. Approximately 10,000 bus operators collectively owe around RM3 billion to credit and leasing companies. This situation has been exacerbated by the fact that these credit and leasing companies operate outside the regulatory framework of Bank Negara Malaysia (BNM), leading to a lack of standardised practices concerning loan moratoriums.
Continued Repayment Obligations Amidst Business Hiatus

Bus operators have been unable to generate income since March, yet they remain obligated to make repayments to their credit and leasing companies. This ongoing financial demand, without any corresponding revenue stream, has placed considerable strain on their operations and personal finances. The Malaysian Association of Tour and Travel Agents (Matta) has highlighted this predicament, noting that these operators are caught in a difficult financial squeeze.
Significant Debt Burden to Credit and Leasing Firms

The collective debt owed by bus operators to credit and leasing companies amounts to approximately RM3 billion. This substantial sum underscores the scale of the financial challenge facing this sector. Matta has indicated that this debt is a direct consequence of the inability to secure extended loan moratoriums, which were advised by the Prime Minister for businesses affected by the pandemic.
Absence of Regulatory Oversight for Credit and Leasing Companies

A key factor contributing to the difficulties faced by bus operators is that credit and leasing companies are not regulated by Bank Negara Malaysia (BNM). This lack of oversight means these companies are not bound by the same directives or guidelines issued by BNM regarding loan moratoriums. Matta has expressed concern over this regulatory gap, suggesting that it allows these companies to establish their own rules and practices, which may not align with broader national interests or public welfare during the pandemic.
Calls for Government Intervention and Regulation

In response to this crisis, Matta has urged the government to intervene and implement appropriate actions to ensure that the practices of credit and leasing companies are consistent with national welfare and public interest. Specifically, Matta has called for these companies to be regulated under the Financial Services Act or other relevant legislation. This move, they argue, would help standardise moratorium policies and provide much-needed relief to affected businesses like bus operators.

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How has the lack of loan moratoriums impacted bus operators since March?

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