Budget 2021: Struggling Kelantan bus operators hoping for loan moratorium

By Sharifah Mahsinah Abdullah - November 6, 2020 @ 1:25pm

KOTA BARU: The Kelantan Bus Operators Association is hoping that the government will announce an extension to the loan repayment moratorium in Budget 2021, today.

Association president Che Ibrahim Che Ismail said that all 20 of its members are praying that there will be good news for them in the Budget, which will be announced by Prime Minister Tan Sri Muhyiddin Yassin.

He said a majority of the members own express and tour buses, and are unable to repay their loans after business was affected by the Covid-19 pandemic.

"Many of us cannot pay our loans after the moratorium ended last month, as some banks and credit companies set conditions that most of us are unable to fulfil.

"This resulted in many of us, especially the smaller companies, ceasing operations because we could not afford to pay our debts. It was also estimated that many bus operators in the country failed to pay their bank loans amounting to almost RM1 billion.

"Therefore, I would like to suggest that the government, especially the Prime Minister as well as the Finance Minister, help solve our problem," said Che Ibrahim, who is Konsortium E-Mutiara Berhad executive chairman.

He added that the moratorium should be extended until the pandemic in the country is curbed.

"It is not that we (bus operators) do not want to pay the loans, but we are facing financial problems right now. Many of us cannot operate due to low demand from travellers.

"For example, my company had to reduce trips by half, compared to previously, as my main travel destinations – Selangor and Kuala Lumpur – are currently under the Conditional Movement Control Order (CMCO).

"If the two states are still in lockdown, this will result in some 100 of my workers having to take unpaid leave beginning this month, as I cannot afford to pay their salaries," said Che Ibrahim, who has 300 workers, mostly bus drivers.