Private sector workers are caught in a vicious cycle and face the brunt of the current financial recession.

Low wages, an inequitable income distribution and the increasing cost of living leave a private sector worker struggling to make ends meet evntually driving them to seek relief from the ‘Ah Longs’ (loan sharks).

The National Union of Bank Employess (Nube) urges banks not to merely focus on corporate business profits and instead look at the private sector workers too and cut red tape for them when they apply for bank loans.

This will include exempting them from Ctos and CCRIS verification to facilitate their borrowing.

In this respect, Nube welcome the decision of a leading local bank that has done away with Ctos and CCRIS screening for civil servants applying for loans with them.

This means that even though a civil servant may be listed as a ‘bad debtor’ on the Ctos/CCRIS list, the bank will still grant him a loan.

The basis for civil servants to be exempted from Ctos/CCRIS screening is an agreement with the bank concerned that condition that his/her loan repayments will be made by way of salary deductions.

Nube urges the said bank to consider applying the same for private sector workers.

The Malaysian government is serious in wiping out ‘Ah Longs’ to protect Malaysian workers. In the same token, Nube urges banks and private sector employers play a positive role to help realise the government’s noble action for the sake of the more than 10 million private sector workers in Malaysia.

The banks can assist in several ways:

For example, banks can limit the quantum of personal loans to RM 50,000 each for those listed under Ctos/CCRIS or lay conditions to ensure that a personal loan is only used to settle outstanding debts in other banks.

Private sector employers, on the other hand, can assist their employees by facilitating salary deductions to repay personal loans to the banks availed upon request.

The writer is general secretary, National Union of Bank Employees (Nube).