MALAYSIA Association Tour Agency (MATA) has expressed concern that not much government aid has reached SMEs and micro-enterprises due to strict conditions imposed by banks.

MATA president Mohd Khalid Harun said its members have complained that their applications for aid were rejected due to the very strict conditions imposed by the financial institutions.

“To date, less than 1% of the scheme has been approved by the financial institutions,” Khalid said in a statement.

“This has hampered the government’s intention to help SMEs and micro-enterprises, which has hampered the recovery of the tourism industry.”

Khalid said banks need to be more flexible in approving the aid as the industry is not doing very well at the moment.

He said when the economy recovers, the industry will become a significant contributor to the gross domestic product, which is why the government introduced this scheme.

“But unfortunately it is being made difficult by the banks, even more unfortunate now that the loan moratorium has been ended.”

MATA is now urging Putrajaya to withdraw the tourism sector’s financing scheme worth RM1 billion under the National Economic Recovery Plan (Penjana) provided through 12 local financial institutions to assist the industry.

They instead want the aid channelled directly to the Tourism, Arts and Culture Ministry for more effective distribution.

He said MATA has been involved in providing recommendations to Bank Negara Malaysia in formulating the policies for the tourism sector.

“So, we can feel the sincerity of the government in wanting to help the tourism industry,” Khalid added. – October 16, 2020.