KUALA LUMPUR – Local banks will be offering moratorium or a temporary postponement of repayments for up to six months to individual and small medium industry borrowers in facing this difficult period.
In an announcement, Prime Minister Tan Sri Muhyiddin Yassin said that the decision was made after a discussion session with the Ministry of Health and Bank Negara Malaysia (BNM).
He also said that credit card holders with financial problems could opt to change their credit card balance to term loan.
The credit card repayment flexibility could benefit its holders from 1 April until 31 December 2020.
For the corporate sector, the Prime Minister said that they could negotiate with their respective banks to rearrange an appropriate repayment method based on their businesses.
He said, it is important so that the companies could afford to provide employment and continue to be in business.
All measures taken in the deferment of loan repayment, rearrangement of credit card balance and restructuring business loans could involve a total value of at least RM100 billion.
“That is a very meaningful amount and I am very grateful towards the concerns of the Ministry of Finance, BNM and the Malaysian banking industry,” he said.
He also said that he had requested the Ministry of Finance and BNM to detail the announcement so that the people can fully understand the benefits that they will be offering.
According to Muhyiddin, the government is studying various ways to reduce the burdens of the people and to launch another economic stimulus plan. The plan, would be more comprehensive and meaningful for the people and national economic.
“The government today is always listening to the requests and pulse of the people. I realised the impact of Covid-19 had not only created health and welfare woes, but the Movement Control Order (MCO) had also caused restlessness among the people financially.
“People from all walks of lives, the entrepreneurs, farmers, fishermen, day workers are questioning about their economic status.
“Among the main issue that they are concerned about is bank loan repayment. From individual borrowers right up to the small and medium industry where their businesses are affected by the outbreak,” he said. -MalaysiaGazette