Measures to Address COVID-19 Impact

Bank Negara Malaysia and the Malaysian financial industry are committed to assist individuals and viable businesses adversely affected by the COVID-19 pandemic.

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Banks remain committed to help households and businesses who need assistance after the automatic moratorium ends

A range of packages have been introduced for affected borrowers, including targeted moratorium extension, and repayment flexibilities based on borrowers' specific financial situation.

Borrowers who still face repayment challenges if their circumstances change in the coming months, may still engage their banks to discuss alternative repayment arrangements.

BNM's Overnight Policy Rate (OPR) has been maintained at 1.75%

Lower OPR translates to lower interest/profit rates on loans/financing by banks. This should help to reduce the monthly loan obligations for businesses and households.

Small Debt Resolution Scheme transferred to AKPK

The Small Debt Resolution Scheme (SDRS) function has been transferred to AKPK from 1 September 2020. This will help SMEs including micro SMEs have better access to debt resolution schemes, to help them manage their finances.

BNM has allocated billions of ringgit in specific purpose funds to help SMEs

The Funds are intended for SMEs to sustain business operations, safeguard jobs and encourage domestic investments. Features & qualifying requirements for the available funds are as follows:

BNM's Special Relief Fund (SRF) has been fully utilised.

The Special Relief Facility (SRF) was designed to help alleviate the short-term cash flow problems faced by SMEs adversely affected by the COVID-19 outbreak. This fund is not available for application.

PENJANA Tourism Fund created for affected businesses in the tourism sector

The Government has created a dedicated fund for businesses in the tourism sector still affected by the pandemic under the PENJANA initiative. Applications for the fund is now open.

Banks to offer moratorium on loan repayment until 30 September 2020.

The Government has announced a 6-month moratorium for loan/financing repayments from 1 April 2020. This should help relieve the monthly burden of individuals and businesses whose income have been affected by the pandemic.

Banks to provide targeted moratorium extension and loan repayment flexibilities after 30 Sep 2020

For individual borrowers still affected by COVID-19, experiencing loss or reduction in income, banks will provide targetted moratorium extension and loan repayment flexibility after 30 Sep 2020. Other flexibilities will be extended to SMEs and other borrowers.

All other borrowers who have the means should start to repay as it will reduce their overall debt and borrowing cost

Banks to help affected borrowers restructure & reschedule (R&R) their loans

The moratorium is a temporary relief measure that allows for deferment of loan repayments but that will lead to higher repayment amounts. Loan R&R may reduce the monthly obligation by extending the loan repayment schedule or changing its terms.

Borrowers need to reach out to their banks to work this out, and not wait until the end of the moratorium period.

Insurers & takaful operators to assist policyholders adversely affected by the COVID19 pandemic.

Measures include deferment on life insurance premiums/family takaful contributions, flexibilities to preserve/reinstate policies, flexibilities to meet general insurance premiums/takaful contributions, and expedited claims processing until 31 Dec 2020.

BNM Shariah Advisory Council has issued a ruling on restructuring of Islamic financing facility during the COVID-19 crisis

The SAC's ruling covers the financing contract, conversion between conventional loan and Islamic financing, and on the compounding profit.

Banking industry associations working together to help borrowers

The Association of Banks in Malaysia (ABM), Association of Islamic Banks in Malaysia (AIBIM), and Association of Development Financial Institutions of Malaysia (ADFIM) are working together with BNM to assist borrowers affected by the pandemic.

Insurance industry allocates RM8 million for COVID-19 Test Fund

Life Insurance Association of Malaysia (LIAM), Persatuan Insurans Am Malaysia (PIAM), and Malaysian Takaful Association (MTA) have jointly established the COVID-19 Test Fund to assist Health Ministry to conduct more testing for policyholders

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Loan R&R: Plan and Act Early

Borrowers should not wait until the end of the moratorium to contact their banks to get help. Plan and act now to get the most benefit.

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Tips for SMEs

These are collection of short videos excerpted from the webinars BNM has conducted

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