GOVT MULLS HELP FOR CASH-STRAPPED MEMBERS OF CHAMBERS OF COMMERCE - MINISTER

MUAR (Malaysia), Dec 5 (Bernama) -- The government is studying requests
from chambers of commerce and industry to help their cash-strapped members badly
hit by the economic crisis in the United States, the world's biggest
economy.

This include deferring their loan repayments to banks and finance
companies,
said International Trade and Industry Minister Muhyiddin Yassin.

Muhyiddin said he would personnally negotiate with Bank Negara (Malaysia's
Central Bank), banks and finance companies to consider rescheduling their loans.


"If we don't help, we worry these companies will close shop and if this
happens, the first to face problems are workers who risk losing their jobs," he
told reporters after giving out compassionate payments to residents in two areas
in this southern town, Pagoh, who lost their livelihood due to floods in
December last year.

Muhyiddin, who is also Pagoh member of parliament, said he would discuss
with the Deputy Prime Minister Najib Razak, who is also Finance Minister, on
making alternative arrangements for loan repayments.

"I will also suggest the affected employers be encouraged to retrain their
workers," he said.

Given the current economic slowdown, he said, the government did not want
factories to lay off workers but instead retrain them using the Human Resource
Development Fund to implement the workers retraining programme.

Earlier, in his speech, Muhyiddin said the chambers of commerce and
industry
have sent memorandums to his ministry seeking government assistance to help them
remain in business.

The cash-stricken entrepreneurs said they would have to close shop in a
year if financial institutions continued to press for loan repayments as stated
in the agreements, he said.

Muhyiddin said employers would also incur losses if they have to retrain
new
workers before their start opening their factories after the economic slowdown
had ended.

"Though the economic growth is projected at five per cent this year and 3.7
per cent next year, I would advise the people to be prepared for the crisis as
predicted by economists will be worse than the 1997/98 financial crisis," he
said.

The minister, however, said the country's economy has the resilience to
stave off the adverse impacts.

"The economic fundamentals are strong and our reserves can sustain food
imports for up to eight months," he added.
-- BERNAMA