May 5 2021, 11:48 AM, updated 5y ago
Brothel owners are bad paymasters, say loan sharks. But then, so are young professionals.
That’s because many young people are living beyond their means, even signing up with illegal moneylenders to buy luxury cars and clothes.
Speaking to FMT, an unlicensed moneylender, Sun T, said those who took out loans included young lawyers, accountants, doctors, secretaries and bank executives who have just started their professions.
“This is a worrying trend. They are really into the flashy lifestyle. They buy cars just to impress others. With job losses and pay cuts due to Covid-19, they are falling into the trap of indebtedness,” he said.
Sun said the ages of these debtors range from 25 to 35 and most used to earn upwards of RM15,000.
“If they say loan sharks are irresponsible, these young professionals are even more irresponsible. Their parents end up paying off their children’s debts,” he said.
Most, he said, would go for BMW, Mercedes-Benz and sporty vehicles as well as branded clothes.
“They are also into gambling,” he said.
Meanwhile, the oldest profession in the world is also going cold. The loan shark said most brothels in Kuala Lumpur and Selangor have shut down after foreign workers stopped using their services.
“Our clients who run brothels tell us that they have dropped hourly prices from RM30 to RM10, yet there are no takers,” he said.
This is because most foreign workers have either gone home or have been jobless since last year. Most brothels, he said, are in the midst of shutting down or have closed shop.
However, he said his clients who run high-end brothels are thriving. “These outlets are in the heart of Kuala Lumpur where VIPs literally throw money at girls,” he added.
A licensed moneylender said his clients in the Klang Valley have lost 35% of their business since the first MCO in March last year, causing a drop in collection too.
Sam, who has been in the business for 10 years, said most of his clients are traders from wet markets, goldsmiths, property agents, developers and sundry shop owners.
He said developers are suffering as some of their projects have been stalled since last year and they could not pay their debts.
“We are now taking them to court for not paying upwards of RM2 million borrowed last year,” he told FMT.
Sam said the new MCO announced yesterday will likely cause a chain reaction in the construction industry as other related industries and businesses such as cement, hardware, and transportation will also suffer.
Once the construction sector slows down, workers from cement factories and those producing raw materials for buildings, and quarry sites as well as lorry drivers will also be affected.
“A lot of hardware shops closed down last year and workers were laid off. It is a chain reaction. My clients are suffering and can’t pay us back,” he said.
He said many of his clients were doctors, dentists, lawyers, accountants and pilots.
“Some of them are out of jobs or face pay cuts and are unable to pay us. They give us their cars as collateral but since June last year, second-hand cars have no value. We do not accept them any more.”
Now, they either take gold, houses or land as collateral. “We are aware that prices of houses have dropped by 25% but we have a holding mechanism,” he said.
Since his company has the sustaining power, Sam said they would keep the assets and wait until prices go up again in two years or so.
“For homes that are going on auction, we sell them 30% below market price. We take what the client owes us and give them back the balance.”
Sam said parents are the best paymasters.
“They take less than RM10,000 to enrol their children in colleges. And they are the only ones who pay us on time every month,” he said.
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Young professionals and brothels the big debtors, say loan sharks
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