ACCCIM’s PRESS STATEMENT ON MEETING ENGAGEMENT WITH BANK NEGARA MALAYSIA ON LOAN MORATORIUM
Today, Bank Negara Malaysia (BNM) has a meeting engagement with The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM) to seek the business community’ s feedback on the loan moratorium.
The meeting was chaired by BNM’ s Deputy Governor Puan Jessica Chew and attended by senior officials of the Bank. ACCCIM is represented by President Tan Sri Datuk Ter Leong Yap, SERC’ s Executive Director Mr Lee Heng Guie and ACCCIM secretariat, Mr Lee Cheng Siang.
Tan Sri President expressed concerns over the upcoming expiry of six months loan moratorium at end-September 2020. It is hoped that BNM would announce the follow-up flexible repayments program to help the individuals and businesses managing through this difficult time.
Tan Sri Datuk Ter welcomes the positive engagement with the Bank to exchange views with the chamber regarding the loan moratorium. We share ACCCIM’ s MBECS’ s 1H2020 survey findings that a higher 37% of total 721 companies surveyed indicated that they have less than 3 months cash flow to cover business operations/productions, raw materials/inventory and manpower while 42% of total respondents having 3-6 month’s cash flow. 42% of respondents have less than 3 months of cash flow to cover debt/financing obligation. 45.7% of total respondents need an additional 6 months of loan moratorium while 20.7% asking for an additional 3 months.
Bank Negara Malaysia has informed that the financial institutions are currently actively engaging with borrowers to offer assistance for their loan repayment and credit facilities after the end of automatic loan moratorium in September 2020. Amongst the flexible repayments include lower monthly instalment, step up repayment, and loan tenure extension. The targeted approach will assist sectors and borrowers that operate and working in highly vulnerable industries and sectors, which would take a longer time to recover.
Towards this end, Bank Negara Malaysia urges borrowers (individuals and businesses) to make an early preparation to engage with their bankers in crafting a suitable flexible repayment program based on financial positions and needs of borrowers.
On our part, Tan Sri Datuk Ter, who is also President of the National Chamber of Commerce and Industry of Malaysia (NCCIM) indicated that the chambers would collaborate with Bank Negara Malaysia to conduct engagement sessions with our members on what’ s next post automatic loan moratorium so that we are operationally, financially and mentally prepared as well as to disseminate the flexible repayments program crafted by the financial institutions to business community.
ACCCIM welcomes Bank Negara Malaysia’ s and financial institutions continued proactive approaches to assist businesses and borrowers in loan repayments program to support the economic and business recovery as we emerge from the COVID-19 pandemic. We would like BNM to consider giving more flexibility in allowing any Rescheduled and Restructured (R&R) loans/financing to not be classified as credit-impaired in Central Credit Reference Information System (CCRIS) and Agensi Kaunseling & Pengurusan Kredit AKPK) until 2021..
Tan Sri Ter Leong Yap