PAWNBROKERS are not anticipating a surge in business once the loan moratorium is lifted in September, said association president Tan Ho Keng. 

“I don’t think there will be a surge because the whole market is flooded with cash,” the president of the Malaysia Pawnbrokers Association told The Malaysian Insight. 

“Customers have been redeeming items pawned with our members, so this is an indication the market has a lot of cash.”

Hence, he said expectations are low when it comes to business volume. 

Contrary to the notion that business is booming, pawnshops actually saw a 20% drop in volume since May when they were allowed to reopen for business under the conditional movement-control order. 

“If we have good business, why don’t people line up anymore?”

In the days after pawnbrokers were allowed to operate again in May, long queues formed outside these shops, leading many to believe that many were pawning their jewels for extra cash. 

However, pawnbrokers nationwide said the queue was due to people redeeming their pawned items, fearing they would lose them after the redemption date expires during the partial lockdown.

It was reported yesterday that pawnbrokers in Johor are expecting more customers once the moratorium ends in September.

Pawning has long been a quick and easy way to get some sorely needed cash – provided one has valuables worth pawning. 

Unlike the bank, the pawnbroker dispenses the cash without first running a credit check and asking for proof of employment and income.

The government recently said the moratorium on bank loan repayments will not be extended beyond September. – July 27, 2020.