Sunday, January 23, 2022

No legal action for now against entrepreneurs who default on loans, says Noh Omar

The minister says the matter will be reviewed after six months but 'now is not the time' to take legal action given the pandemic situation.

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Agencies under the entrepreneur and cooperative development ministry will not take legal action against entrepreneurs who fail to repay their loans for now.

Minister Noh Omar said this was not the time to take such action against entrepreneurs who were adversely affected by the Covid-19 pandemic. Instead, he said, they should be assisted.

“We will not be taking legal action against them for now. To make them fold up their business or become bankrupt, no way. We’ll look into it after six months but now is not the time,” he said when winding up the debate on the Supply Bill 2022 (Budget 2022) at the committee level on his ministry in the Dewan Rakyat today.

Noh said the ministry understood the situation of entrepreneurs impacted by the pandemic and who were now rebuilding their businesses after the easing of restrictions given by the government.

He said the agencies under his ministry were meanwhile urged to reduce bureaucracy in approving loans for entrepreneurs to improve or revive their businesses.

“We will make improvements and I can help through the agencies under my ministry. Whether it’s CTOS or CCRIS, it need not be taken into account. Likewise, there should no charges or interest imposed,” he added.

On the future of would-be entrepreneurs undergoing courses with the ministry, he said efforts are being made for them to be given grants to start a business, not just a certificate upon completing their course.

“If the grants are insufficient, they can be given a loan under the Entrepreneur Group Economic Fund or Tekun,” he said.

Noh also said that in the last three months, his ministry had assisted 220,241 entrepreneurs and cooperatives to revive their businesses, exceeding the original target of 188,345 entrepreneurs.

The Dewan Rakyat approved the estimated management expenditure for his ministry at RM195,036,300 after 22 MPs debated on the bill at the committee level.

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