Loan is engine of the economy, Gerakan Press statement by Gerakan Vice-President and Head of Central Economic Bureau, Dato’ Mah Siew Keong

Banks should take the cue from the Prime Minister to continue lending during these challenging economic times as loan is the engine of the economy, said Gerakan Vice-President Dato’ Mah Siew Keong.

In a statement, Mah said giving loans would also trigger a whole chain reaction of recovery process that was fund-driven as well as generate more economic activities in the country.

“Although banks are generally more cautious in giving credit to the private sector at this juncture, they should continue to give loans, especially to their chore and regular customers,” he said.

Mah, who is also the party’s head of central economic bureau, was commenting on a call by Datuk Seri Najib Tun Razak to banks not to pull back on loans from viable customers.

“Banks must not withdraw credit without justifiable cause and they should build their capabilities to provide credit to the new growth areas, including the services sector, IT, life sciences and other knowledge-driven investments,” Najib said in his keynote address on “Strengthening the economy, sustaining the banking and finance industry” at the 13th Malaysian Banking Summit 2009.

Mah said at most credit officers should be more careful when sieving applications for loans.

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