HAIR salon owners have turned to loan sharks to keep their businesses afloat during the movement-control order, reports The Star.

Malaysia Hair Salon Owners’ Association (Mahas) chairman A.K. Selvan said this is because many of them either do not qualify for government aid or are still awaiting approval for their applications.

Grants and loans are provided to small and medium enterprises under the Prihatin Plus stimulus package to mitigate the impact of the Covid-19 pandemic, but the approval process takes time, he said.

“We do need assistance, but all are not getting the aid.

“We have no choice but to seek out ah long (loan sharks) to survive.”

He said some of these illegal moneylenders charge a 20% monthly interest.

“For example, if we ask for a loan of RM10,000, these ah long will give us only RM8,000, while the remaining RM2,000 is considered interest.

“This is difficult for us. Many of us have no choice because we have no income and we are not receiving help although we are drowning (in debt).”

He said Mahas calls on the government to set up a special fund for hair salon owners. – May 15, 2020.