2009/01/05 New Strait Times

Mydin calls on Bank Negara to help traders
By Presenna Nambiar

BANK Negara Malaysia, as the regulating body for banks, should monitor the plight of traders who rely on banks for financing, says major discount retailer Mydin.

"There have been instances of foreign banks based in Malaysia reducing the credit facility made available to traders because of the worldwide credit crunch.

"Bank Negara should monitor the situation and look for ways to provide facilities to local retailers who want to expand," Mydin Mohamed Holdings Bhd managing director Datuk Ameer Ali Mydin told Business Times.

Mydin does not borrow from foreign banks in the country.
Ameer called on the government to be proactive and set up a help desk for those who find it difficult to obtain bank loans to finance their expansion plans.

"The government has to be about more action and less rhetoric," he said.

Securing financing has been difficult as banks become tight-fisted to reduce their exposure to bad loans.

"This is because banks tend to take a macro view of things and do not look at businesses individually," Ameer said.

Mydin, for instance, was continuing its expansion drive as it felt that the current economic scenario gave its wholesale business model an opportunity to grow, with consumers opting for more value for money.

Mydin employs some 5,500 people nationwide.

"Spending on infrastructure is not the only way to spur the economy; pumping money into the retail industry also has a tremendous multiplier effect," Ameer said.