Bank Negara Malaysia and the Malaysian financial industry are committed to assist individuals and viable businesses adversely affected by the COVID-19 pandemic.
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.
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.
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.
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:
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.
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.
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.
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
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.
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.
The SAC's ruling covers the financing contract, conversion between conventional loan and Islamic financing, and on the compounding profit.
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.
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
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.
These are collection of short videos excerpted from the webinars BNM has conducted