Moratorium 2.0: When the going gets tough, the tough would only get going…if everyone chips in.

There are two words of wisdom that I would like to quote, firstly from Henry Ford:

“Business must be run at a profit, else it will die. But when anyone attempts to run a business solely for profit and thinks not at all of the service to the community, then also the business must die, for it no longer has a reason for existence”

Secondly, Bank Negara Malaysia Governor Datuk Nor Shamsiah Mohd Yunus at the ‘Value based intermediation – Beyond Profit (GIFF 2018)’, said:

“How the value propositions of Islamic finance can be further developed, to bring us closer to the reality of finance beyond profit.”

It was only about 25 years ago, in 1997, when the banks were going through difficult times; who bailed them out? The Government, through Danaharta and Danamodal, to the tune of RM58 billion. Now when the banks are well off; as a matter of fact they are very well off, they are reluctant, unsure, thinking about it, concerned about reduction on profit, worried about return to stakeholders?

Reflecting on the wisdom of Henry Ford, Yes, you need to think about profit but beyond that, you also need to think about your services to the community, or else there is no reason for you to even exist. Governor Shamsiah, though in different wordings, and much more specifically for Islamic Finance fraternity, which includes Islamic Banks, pushed for the same message, “go beyond profit”.

Show your compassion, show your concern! White flags are being raised everywhere, extend a helping hand, a proper and extensive helping hand. Do not hide behind ‘regulation’, complicated IT ‘system’, ‘agreement’, ‘contract’ etc.

Let the moratorium be a real moratorium, in form and substance, real exemption of taking a break from servicing the financing or loan, interest-free, no hidden charges etc.

Come fast, come clean, clear the air, clear the confusion.

Transparency and Integrity of the highest order are compulsory.

Where there is a will, there is a way…InsyaAllah….


By Assoc. Prof. Dr. Baharom Abdul Hamid


Dr. Baharom has commented on this issue in Utusan Malaysia:

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