MATTA: Leasing companies should use BNM directive

KUALA LUMPUR, 26 March 2020 – The Malaysian Association of Tour and Travel Agents (MATTA) had received numerous complaints from its members that leasing companies have created their own set of moratorium on repayment of loans instead of using the one issued by Bank Negara Malaysia on 24 March 2020. We are shocked by their attitude that at this time of crisis they provide little to help. The automatic moratorium for loan installments is for the period of 6 months but these leasing companies offer a mere 2 months to the land transporter tour operators.

MATTA President Datuk Tan Kok Liang says, “Leasing companies may be under the purview of the Ministry of Housing and Local Government, but in this period of extraordinary crisis, everyone and all companies must come together as one united nation instead of certain party exercising the rights provided under the law. The travel industry today has no business, and no income for the tour operator to pay for the lease payments of their vehicles.”

“Just like the banks that are having the six months moratorium, the leasing companies should do the same for their clients. For leasing companies to aim for good returns at this challenging period when there is no business could easily result in total loss when the lessees decide to surrender their tour vehicles because they cannot repay the loans. If this were to happen, leasing companies would be saddled with a huge fleet of vehicles.”

“Hence, it would serve the best interest of leasing companies to help rescue transport operators by being business friendly and acknowledge the fact in the current circumstances that the lessees are unable to fulfil the contract to pay their loans. Imposing existing payment conditions, or just reducing a little bit the amount of payment is nothing more than lip service.”

"We seek the cooperation from the leasing companies to be guided by the moratorium by Bank Negara Malaysia to the financial institutions in helping their clients during this very difficult period”, concluded Tan.