Give loans to people, not malls, banks told

Gerakan president Dominic Lau today urged banks to stop financing shopping malls and office buildings and to instead provide loans to individuals for their homes, vehicles and small businesses.

In a statement, he said many organisations had been forced to adopt long-term telecommuting practices as a result of the pandemic.

“As consequence, overbuilding shopping malls and office complexes is not financially sustainable,” he added.

“Many firms have been forced to implement long-term telecommuting strategies with a focus on digitisation as a result of the pandemic. This means that employers do not require office space.”

Decribing individuals and SMEs as “the backbone” of the economy, he said financial institutions should extend or reschedule their terms or refinance their term sheets.

“This over-financing of the over-supply of shopping malls and office buildings must stop now.

“It is time for Malaysian financial institutions to rethink their priorities,” he added.

“It’s critical to give the people enough time and space to figure out how to solve their financial concerns.”