THE Malaysian Muslim Restaurant Owners Association (Presma) is urging the government to allow an automatic moratorium on loans to restaurant operators who have been severely affected by the latest total lockdown, The Star reported.

Presma president Jawahir Ali Taib Khan told the English-language daily that nearly 5,000 restaurant operators face the risk of going bankrupt if they were not given proper assistance.

“Without proper assistance 4,750 restaurants might have to close as cash flow has dried up.

“About 95% of operators do not own their premises, they still need to pay full rental despite bad business,” he said yesterday.

Jawahar cited an example at Taman Tun Dr Ismail, where an operator would have to pay RM15,000 per month for rental.

“Another example is in Jalan Masjid India, the rent is RM13,000 a month, but daily sales is just RM160,” he stated.

Speaking further, Jawahar said banks do not lose money by extending automatic moratorium and still made huge profits in 2020 and in the first quarter of 2021.

“We will pay the banks back once the pandemic is over and the economy fully reopens,” he added.

Jawahar then pleaded to landlords who received a moratorium to pass the benefit to its tenants.

“Section 7 of the Prevention and Control of Infectious Diseases Act 1988, which stated that if a tenant is unable to pay rent due to the lockdown, the landlord shall not be able to sue the tenant, provided the tenant can prove negative cash flow.”

“This relief was scheduled to be in force from March 18 and has since been extended to June 30, 2021. The government shall also provide guidelines on how this section should be operationalised.” – June 14, 2021.