What actions can the government take on loan moratoriums for bus operators?

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Government Intervention Urged for Bus Operator Loan Moratoriums

The Malaysian Association of Tour and Travel Agents (Matta) is seeking government intervention to address the refusal of credit and leasing finance companies to extend loan moratoriums to bus operators. Matta has requested the government to consider appropriate actions to ensure these companies' practices align with national welfare and public interest during the ongoing Covid-19 pandemic. This plea comes as approximately 10,000 bus operators collectively owe around RM3 billion to credit and leasing firms, despite having experienced no business since March and still being obligated to make repayments.
Regulatory Oversight for Credit and Leasing Companies

A central concern raised by Matta is that credit and leasing companies are not currently regulated by Bank Negara Malaysia (BNM). This lack of oversight, according to Matta, has allowed these companies to establish their own rules regarding loan moratoriums, diverging from the directions issued by BNM. Matta has been highlighting this issue for over six months, noting a lack of proactive measures to address the predicament faced by the tourism sector, particularly coach operators.
Legislative Measures to Ensure Fair Practices

Matta is urging the government to implement regulatory measures to bring credit and leasing companies under the purview of existing legislation, such as the Financial Services Act or other relevant laws. This would provide a framework to ensure these companies adhere to national guidelines and public interest considerations, especially in times of economic distress like the pandemic. The association has previously received complaints in March 2020 detailing how these finance companies created their own moratorium policies instead of following BNM's directives.
Impact on Tourism Restart

The failure to resolve the issues surrounding loan moratoriums for bus operators is expected to have a significant negative impact on the intended restart of the tourism industry in 2021. Matta believes that the continued hardship faced by the tourism sector, exacerbated by the inflexibility of credit and leasing companies, could lead to the perception that the industry is being overlooked or is not a priority for recovery efforts. This situation adds to the existing misery of tourism businesses already struggling due to the pandemic's effects.

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What actions can the government take on loan moratoriums for bus operators?

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