DO NOT IGNORE THE REQUEST TO EXTEND THE TEMPORARY MEASURES FOR REDUCING THE IMPACT OF CORONAVIRUS DISEASE 2019 (COVID19) ACT 2020 [ACT 829] AND EXERCISE THE POWER TO INTRODUCE A SPECIAL MORATORIUM TO ACHIEVE RECOVERY
We have learned about the opinions, grievances, issues, feedback, and ideas of our members who are attempting to recover in their different sectors after being impacted by the Covid-19 outbreak and the risks to the Industry that have still not been handled by the parties concerned.
PLEASE TAKE NOTICE that the TEMPORARY MEASURES FOR REDUCING THE IMPACT OF CORONAVIRUS DISEASE 2019 (COVID-19) ACT 2020 [ACT 829] will cease to be effective on October 22nd, 2022 and we are of the opinion that when the Act has been stopped, businesses that have been affected by the Pandemic Covid-19 will no longer have special protection against their creditors.
The matter has clearly been proven when the Act was almost withdrawn last year has seen banking or financial institutions have started pressuring businesses to get back the amount of loans owed without looking and/or considering the current economic situation of the business until some have taken steps to declare the Company Director for the business bankrupt. The matter has affected the score of the financial position of those businesses when they have been listed in credit reporting agencies and/or financial information systems as well as listed with the Malaysian Insolvency Department and it will take time to settle the debt and could not been involved in any future business. This will also affect the economy when businesses that can recover and return to competitiveness have to close.
However, with the Temporary Measures For Reducing The Impact of Coronavirus Disease 2019 (Covid-19) Act 2020 [Act 829], Banking or financial institutions cannot take legal action to declare bankruptcy on those businesses, even payments may be suspended under the said Act. Furthermore, this Act is to provide special protection to those businesses from Banking or financial institutions, property owners and also enable them to postpone the execution of private contracts or performance bonds as mentioned in “Section 7 Schedule – List of Contract Categories” of the Act 829.
THEREFORE, After evaluating and considering all the responses from the members of the Federation of Malaysian Business Associations (FMBA), we call on the Malaysian Government to EXTEND THE ENFORCEMENT OF THE TEMPORARY MEASURES FOR REDUCING THE IMPACT OF CORONAVIRUS DISEASE 2019 (COVID-19) ACT 2020 [ACT 829] and INTRODUCE A SPECIAL MORATORIUM to give space to their businesses to re-strengthen the financial flow of their respective businesses that still cannot recover due to the current economic situation.
We call on all parties to be aware of the serious consequences if the TEMPORARY MEASURES FOR REDUCING THE IMPACT OF CORONAVIRUS DISEASE 2019 (COVID-19) ACT 2020 [ACT 829] fails to be extended.
Business owners in particular and ordinary people in general NEED SUPPORT AND NOT PRESSURE in jointly driving their respective businesses towards recovery and excellence in line with the Government’s efforts and failure to take immediate action will cause businesses and ordinary people to be affected.