Three months moratorium for cooperatives’ revolving fund

by AFIQ AZIZ / pic by MUHD AMIN NAHARUL

COOPERATIVES who subscribe to the Cooperative Commission of Malaysia (SKM) Revolving Capital Fund are eligible for a three-month moratorium repayment, said the Ministry of Entrepreneur Development and Cooperatives (Medac).

Medac Minister Datuk Seri Dr Wan Junaidi Tuanku Jaafar (picture) said the deferment will start from June 1, in line with the latest Movement Control Order (MCO), or MCO 3.0.

He said a total of 1,056 cooperatives nationwide will benefit from the moratorium ending Aug 31, 2021.

“Cooperatives affected by the pandemic Covid-19 will only make loan repayments starting Sept 1, 2021,” Wan Junaidi said.

As of April 30, SKM — an agency under Medac, is financing a total of 1,734 accounts with a total financing worth RM1.66 billion.

“We hope this will ease the burden of the cooperatives,” he said.

The government said the economic sectors will slowly open if the Covid-19 infection rate goes down during phase one of the MCO 3.0.

The announcement of MCO 3.0 was followed by calls from several quarters asking for the government to consider an automatic loan moratorium for individuals and businesses during the MCO 3.0.

In 2020, due to several MCO phases, the cooperatives sector was among those affected because of the decrease in acquisition value and loss of jobs, resulting in the sector losing more than RM10 billion within a year.

Wan Junaidi noted that the deferment of loan repayment would ensure business continuity as it would ease entrepreneurs’ cashflows.

To further ease the burden of cooperatives, he said the application process for the moratorium will be simplified.

Eligible cooperatives would only need to submit a formal application with supporting documents attached together including receipts and payments statements, as well as bank statements for a three months period.

“The moratorium facility is offered to all cooperatives that have a financing account under the Revolving Capital Fund, and as for cooperatives that have a financing account for their credit activities, the moratorium approval is subject to cooperatives that offer moratorium facilities to its members.

“Medac hopes that the moratorium facility will help the cooperatives to continue their business activities and provide additional cash facilities for cooperative operations,” Wan Junaidi said.