The ongoing six-month automatic moratorium announced by Bank Negara Malaysia (BNM) in March is estimated to stand at a value of RM51.4 billion as of 6 July 2020, said Finance Minister Tengku Datuk Seri Zafrul Abdul Aziz.
Of the total, RM17.9 billion is accounted for by the business sector, whereas the remaining RM33.38 billion is made up of loans from the public.
Tengku Zafrul said that despite being only a temporary measure, the six-month moratorium was timely and a relief for many impacted groups, particularly those who had lost their source of income during the movement control order (MCO) period. The initiative, which began in April, is slated to end on 30 September 2020. A blanket extension of the automatic moratorium is not likely, although some banks – such as CIMB and AmBank – have said that they may consider a targeted approach instead.
Consequently, Tengku Zafrul reminded the Malaysian public to assess their ability to repay their loans post-moratorium, and to seek early aid if they’re unable to cope. “For those who are facing financial difficulties and may need to restructure and reschedule their facilities, they are advised to get early targeted assistance. This can be done by consulting their respective financial institution or the Credit Counselling and Debt Management Agency (AKPK) for advice,” he said in his 12th LAKSANA report.
The report also contained the latest updates on the implementation of other initiatives provided through the Prihatin economic stimulus package and the PENJANA economic recovery plan. These include the Bantuan Prihatin Nasional (BPN) aid, the wage subsidy programme, and cash incentives for various parties, such as tertiary students, e-hailing and taxi drivers, as well as government retirees.
“The key point to convey here is that we are on track. While we have had ups and downs and challenges along the way, we are progressing well and we look forward to seeing through the implementation of all measures,” said Tengku Zafrul.
You can read Tengku Zafrul’s full 12th LAKSANA report here.
(Source: The Edge Markets)