25th November 2021 - 2 min read
The Malaysian Association of Borrowers and Consumers Solution (4PM) has cautioned that many Malaysians aged between 30 to 45 years old may go bankrupt in 2022, once most of the financial aids provided by the government expire. The number of affected individuals could, in fact, go up to tens of thousands, it said.
“I’m receiving bankruptcy calls every day nationwide. If 30 calls per day, that’s 900 per month, and 10,800 per year. That’s just me though, I haven’t included my officers yet,” said the president of the group, Rosland Mohd Arif, who foresees that many individuals will resort to credits from loan sharks to survive when government aids – such as the ongoing six-month PEMULIH moratorium and various Employee Provident Fund (EPF) withdrawal facilities – come to an end.
In light of this situation, Rosland urged the government to intervene and assist those who are in need. “I’ve received reports of people being threatened by these loan sharks who have exorbitant interest rates, as much as 6% a month. They also often harass the borrower and their family,” he said.
Rosland further commented that 4PM is willing to work with the government as a representative to resolve these bankruptcy issues. He said that the non-governmental organisation (NGO) could serve as a mediator so that Malaysians who are in need will not get cheated by the bank or be threatened by loan sharks.
Meanwhile, eligible Malaysian borrowers who require further financial assistance can also tap into the ongoing URUS programme, which is open for application until 31 January 2022. A collaborative effort drawn up between the Credit Counselling and Debt Management Agency (AKPK) and the banking sector, it is targeted specifically for those who fall under the bottom 50% (B50) income group, offering aids such as personalised financial plans.
(Source: Malay Mail)
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