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Bank Negara Malaysia has established a Small Debt Resolution Mechanism to facilitate the restructuring of non-performing loans (NPLs) of small and medium enterprises (SMEs) with on-going businesses.

Under this new mechanism, a Small Debt Resolution Committee has been established to undertake independent assessment on the viability of the businesses, and propose the loan restructuring and financing requirement of the affected businesses. The members of the Committee are:

• Tuan Haji Yusof Husin (Chairman)
- Chairman, TPPT Sdn. Bhd.
• Dato' Mohd Hanif Sher Mohamad
- Chairman, ERF Sdn. Bhd.
• Datuk Wan Azhar Wan Ahmad
- Managing Director, Credit Guarantee Corporation Malaysia Berhad
• Dato' Mustafa Mansur
- President, Federation of Malaysian Manufacturers
• Datin Paduka Zahridah Ismail
- Member of Investment Panel, Lembaga Tabung Haji
• Encik Mustafa Hamat
- CEO, Islamic Banking and Finance Institute Malaysia
• Encik Mohd Nasir Ahmad
- CEO, Permodalan Usahawan Nasional Berhad
• Dato' Zukri Samat
- Managing Director, Pengurusan Danaharta Nasional Berhad
• Encik Teo Tong Kooi
- Managing Director, Tasek Corporation Berhad
• Encik Chung Chee Leong
- Director, Banking Supervision 2 Department, Bank Negara Malaysia
• Encik Mahdi Mohd Ariffin
- Director, Foreign Exchange Administration Department, Bank Negara Malaysia

The SME Special Unit at Bank Negara Malaysia will serve as the Secretariat to the Committee.

This new mechanism is open to the SMEs with on-going businesses which have aggregate NPLs of not more than RM3 million with the commercial banks, finance companies, Islamic banks, Bank Pembangunan dan Infrastruktur, and Bank Industri dan Teknologi. Taking into account that the debt resolution process may involve the provision of new financing to the businesses, Bank Negara Malaysia has established the Rehabilitation Fund for Small Businesses with an allocation of RM800 million. In this regard, eligible businesses may obtain new financing up to RM1.5 million at a financing rate of 5% p.a. for a maximum tenure of 5 years.

To facilitate the loan applications and processing, there will be a common application form. All eligible businesses can obtain the application form and submit it through the SME Special Unit at Bank Negara Malaysia, ERF Sdn. Bhd. or the implementing financial institutions. The SME Special Unit and ERF Sdn. Bhd. can be contacted at the following address and telephone numbers:

SME Special Unit
Tingkat M, Blok C,
Bank Negara Malaysia
Jalan Dato' Onn
50480 Kuala Lumpur
Tel: 03 -2693 2330/2691 6539/2691 6971

ERF Sdn Bhd
Tingkat 7 & 9
No. 4, Jalan Sultan Sulaiman
50000 Kuala Lumpur
Tel: 03 - 2078 1378

With the introduction of this new small debt resolution mechanism, the existing restructuring and financing mechanisms under Tabung Pemulihan dan Pembangunan Usahawan, and Tabung Pemulihan Industri Kecil dan Sederhana will be discontinued.
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Last Updated Date : 19 November 2003

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