THE government should buy out the rental debts of businesses in shoplots as it has done in past recessions, said the Malaysia Shopping Malls Association (PPK).

PPK president Teo Chiang Kok said many business owners are behind in making rent due to the impacts of Covid-19 and the various movement control orders.

The government can launch a fund and buy out their rental debts through a factoring-and-discounting mechanism, he added.

“This is to give liquidity back into the system to ensure the recovery and revival of the businesses and economy… This is our only call,” he said at a virtual press conference hosted by Industries Unite.

Last year, the government had gazetted the Temporary Measures for Reducing the Impact of Coronavirus Disease 2019 (Covid-19) Act 2020 to assist economic recovery. The Act, among others, provides temporary relief from contractual obligations.

The Act has protected business owners who are unable to make rent since it was implemented.

“Section 7 of the Act provides that the inability of any party to perform any contractual obligation due to measures prescribed under the Prevention and Control of Infectious Diseases Act 1988 to control the spread of Covid-19 shall not give rise to the other party exercising their rights under the contract,” reads the section.

Teo said it is time for businesses to look into how to refinance their businesses and get back liquidity to ensure their survival.

Restaurant and Bistro Owners Association vice-president Jeremy Lim urged the government to provide direct and indirect financial aid for food and beverage (F&B) operators.

“A lot of our members are under tremendous pressure. Everyone’s cash flow is dipping. We have mounting debts and are faced with a lot of uncertainty.

“We appeal to the government: please provide some level of direct and indirect financial assistance.”

Putrajaya can help by deferring all monthly corporate tax payments, statutory payments, and sales and service tax payments; extending the validity of all licenses for at least 12 months; and, continuing the wage subsidy programme until June, he added.

“In the past 19 months, our industry (F&B) has been slapped with intermittent government-mandated dine-in bans, and because of this, many have incurred mounting debts.

“To save business and livelihoods, the government must offer immediate direct and F&B-targeted financial aid. Please allow businesses to have sufficient cash flow to reopen and repay their dues.”

Lim said the government should also extend the expiry of business operating licenses, as restaurants have had to operate at limited capacity or with dine-in restrictions due to the lockdowns.

He also urged the government to set up an industry reporting committee, comprising enforcement representatives, industry leaders and policy makers.

“The committee will be a one-stop centre for the industry on any pandemic-related policy and address any issue from the grassroots with haste.” – October 30, 2021.