The Malaysian Insight

LIKE many roadside hawkers, Nurahdafashihah Salim lost all of her income when most of the economy was shut down during the eight-week movement-control (MCO) from March to May.

Now, the 28-year-old is making only 70% of what she used to make from selling pau, sausages and curry puffs before the MCO began to beat the Covid-19 pandemic.

Like many micro-entrepreneurs the six-month moratorium on loan repayments was a lifeline that kept her and her family afloat during and after the MCO.

The money that would have gone to service their car and home loans was used for food, baby supplies, electricity and now with the pandemic – masks and hand sanitisers.

But with the looming end of the moratorium in September, Nurahdafashihah fears that the little she and her husband earns will not be enough to feed her family and to service their debts at the same time.

“If the moratorium is not extended, lots of young people like me would find it tough because of the current economy,” she told The Malaysian Insight at her stall in Petaling Jaya.

“Some of us might not be able to service our loans and might end up having our car or homes repossessed. This is like adding salt to the wound. It’s not that we don’t want to pay but our situation is tough right now.”

In Penang, char kuey teow seller Hardi Ismail is trying hard not to think of how he is going to start paying the RM1,500 instalment for his home in October.

“I don’t know where to find the money if the moratorium is not extended. I don’t want to borrow any more money either because I am already old,” said the 61-year-old.

His business is only starting to recover after the MCO and his wife needs weekly dialysis treatment.

“Right now, I am working hard to stabilise my income again. We used to also cater for weddings but these days, there are no more bookings for weddings,” said the former civil servant.

Hardi and his sons run three stalls but only the Permatang Pauh stall is making enough to break even.

“I am hoping that the income from the business will be enough but I am not sure. I’m frustrated just thinking about it because it is hard to find a solution.”

Just getting by

The Perikatan Nasional government said the moratorium on bank loan repayments won’t be extended beyond September despite repeated calls from workers, industry and consumer groups.

According to the Statistics Department, the moratorium eased the cash-flow burden of 10 million individuals and about 800,000 small- and medium-sized businesses.

The cumulative deferred payments on all loans are RM38.4 billion for individual debtors and RM19.3 billion for businesses.

When announcing the moratorium’s end, Finance Minister and ex-banker Tengku Zafrul Aziz said: “This moratorium will end at the end of September. With the opening of the economy on May 4, the people and businesses were earning money. There are also those who were already able to pay back their loans.”

Of the 10 entrepreneurs The Malaysian Insight met, only one, barber Jufri Mohamed said he could start repaying the loan without sacrificing money for his family’s daily necessities or his business’ operating costs.

“I am only earning 30% of what I used to. But God willing I can make my monthly instalment for my car because I took a small amount. It’s not big,” said the 37-year-old in Puchong.

The rest are like Nurahdafashihah and Hardi – making just enough to keep their business going and feed their families.

The income for Pramala Selvarajah’s flower business has dropped by half after she reopened in June as her usual customers cut back on their own spending.

Her business depends on Indian weddings but because this is an inauspicious period, weddings will only start taking place in mid-August.

“There will be no sales for wedding garlands, which contribute a lot to our monthly revenue,” said the 36-year-old.

“Even temples are not ordering much because there are fewer people going to temples now. The pandemic has brought great impact and the government needs to understand that people are suffering.”

Motorcycle workshop owner Hazri Mohd Zin is also at a loss over how to start repaying his car instalments as his business has barely recovered after being shut for three months.

Despite the fact that motorcycle repairs are considered an essential service, only 30%-40% of his usual customers have returned.

“I will have to further cut corners to start paying back. I don’t know what I will cut yet as I am already scraping the bottom,” said the 32-year-old.

Roadside hawker Sakunthala Narayanasamy proposed that banks extend the moratorium, at least until year-end, a sentiment shared by the other interviewees.

“This would help us cover our losses and get back on our feet again,” said the 50-year-old who sells curry puffs and vadai at a roadside stall.

During the MCO, Sakunthala had to burn tap his savings to feed his family.

“These savings were for future medical use, for my kids’ education and for household expenses. But since I am not earning back what I used to, I am using these savings to cover my losses and help pay for my worker.

“After all, we are not asking for a waiver or for loans to be rewritten off. It’s just to delay repaying them for another three months.” – July 24, 2020.