EXTEND TEMPORARY MEASURES FOR REDUCING THE IMPACT OF CORONAVIRUS DISEASE 2019 (COVID-19) ACT 2020 [ACT 829] AND EXERCISE THE POWER TO INTRODUCE A SPECIAL MORATORIUM TO ACHIEVE RECOVERY

The FMBA had its second annual general meeting on September 27, 2022, in the Tun Rahah Auditorium, Menara Pernas, Tower 7, Avenue 7, Bangsar South City, No. 8, Jalan Kerinchi, 59200 Kuala Lumpur. Nearly 100 captains of industry attended, and His Excellency Dato’ Sri Mustapa Bin Mohamed, Minister in the Prime Minister’s Department, presided over the event (Economy).

In the Annual General Meeting, we have heard views, complaints, problems, feedback and suggestions from affiliated members who attended the Second Annual General Meeting from around the country who are striving to recover in their respective industries as a result of being affected by the Covid-19 pandemic and the threats to the Industry that have yet to be resolved by the parties involved.

Among those that have been discussed is the TEMPORARY MEASURES FOR REDUCING THE IMPACT OF CORONAVIRUS DISEASE 2019 (COVID-19) ACT 2020 [ACT 829] which will cease to be effective on 22nd October 2022, and we are of the opinion that when the Act has been stopped, the businesses that have been affected by the Covid-19 Pandemic will no longer receive 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The matter has clearly been proven when the Act was almost withdrawn last year has seen banking or financial institutions have started pressuring businesses to get back the amount of loans owed without looking and/or considering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. In the Annual General Meeting, the Affiliate Members have unanimously agreed with an Emergency Resolution in requesting the Malaysian Government to exercise its authority to introduce a SPECIAL MORATORIUM to give space to their businesses to strengthen the financial flow of their respective businesses who is still struggling to recover.

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. Business entrepreneurs NEED SUPPORT AND NOT PRESSURE in jointly driving their respective businesses towards recovery and excellence in line with the Government’s efforts for and on behalf of FEDERATION OF MALAYSIAN BUSINESS ASSOCIATIONS (FMBA).