LONG queues formed outside Klang Valley pawnshops on the second day of the conditional movement-control order (CMCO), with people rushing to either reclaim their valuables, pay interest or put up more items as collateral to tide them over this difficult period.

The Malaysian Insight spoke to several people in line who said they are broke after being laid off or forced to take unpaid leave since the MCO was enforced on March 18.

They said they have no money to redeem their jewellery pawned earlier and are hoping to buy time by paying interest and renewing their receipts so that they do not lose their valuables.

A customer, who wanted to be known only as Nana, said she was put on leave during the MCO.

“Now, I don’t have enough money to redeem what I had pawned earlier,” said the Sunway resident.

Another customer, from the Kerinchi People’s Housing Project in Pantai Dalam, said she is seeking an extension as her receipt has expired.

“I pawned my valuables six months ago and I’m here to enquire how much to pay for an extension.

“I don’t have much money. Most of it has been used during the MCO,” said the 60-year-old, who did not want to be named.

Some in the crowd got frustrated when an employee told them to disperse as the pawnshop had to close at 2pm.

Under the CMCO, these businesses can open only from 9am to 2pm.

A pawnshop owner, who gave her name only as Sheryl, said the queues will shorten by the end of the week.

“There has been a slight increase in people coming to these shops, but it’s mostly to renew their receipts and check on their valuables.

“This trend will not last long. It will die down soon.”

She said pawnshops grant a six-month grace period for customers to redeem their valuables, after which the items will be auctioned.

“The government has announced a three-month moratorium, so we’re extending (the grace period) to nine months.

“However, just like the banks, we will charge interest for the three months.”

Malaysia Pawnbrokers’ Association (MPA) president Tan Ho Keng said another reason for the snaking lines is that only two customers are allowed in the shop at one time, as per social-distancing rules.

“Usually, about eight to 10 people can enter the shop, but because of social distancing, we have to control the crowd.

“This is a temporary trend because we are in a partial lockdown.”

He said many people showed up to reclaim their valuables in preparation for Hari Raya Aidilfitri.

“They want to redeem their items because of Hari Raya. That could be one of the reasons for the queues.”

There are about 600 licensed pawnshops nationwide, with more than half being MPA members, he added.

The MCO, aimed at breaking the chain of Covid-19 infections, is due to expire on May 12. For the current phase, the government has relaxed restrictions to allow most economic sectors to resume operations on condition that health and safety rules are followed.

Malaysia has so far recorded 6,386 coronavirus cases and 106 deaths. – May 6, 2020.