CIMB Group Holdings Bhd will engage with borrowers from the hardest-hit sectors to extend support and restructure terms, where necessary, said group chief executive officer Abdul Rahman Ahmad.

In a statement, Rahman said as the moratorium period is ending, the focus for CIMB, as with other financial institutions, will move towards a more targeted assistance approach.

He said this at the group’s 63rd annual general meeting (AGM) with shareholders today, held virtually for the first time. The meeting was chaired by CIMB Group chairman Mohd Nasir Ahmad, with the board of directors in attendance.

Given the Covid-19 pandemic and the stress it has placed on the global economy, Rahman said the financial performance of the group for the financial year 2020 would inevitably be affected.

To mitigate this, the group will undertake a review of its Forward23 strategy as well as increase the rigour of cost management initiatives.

The six-month automatic moratorium in Malaysia has provided significant relief for CIMB’s customers, particularly for bottom 40% (B40) households and small and medium enterprises (SMEs).

As of end-May, the moratorium has benefitted more than 1.3 million retail customers and more than 16,000 SMEs and corporate clients in terms of cash flow alleviation to help them face the challenging environment. 

In addition, CIMB has approved more than RM1 billion in relief funds to SMEs, of which RM700 million is under the Bank Negara’s special relief fund. 

The bank is also fully committed to supporting the government’s newly launched RM1 billion National Economic Recovery Plan (Penjana) financing scheme for SMEs, CIMB said.

The three hardest-hit sectors according to the Malaysian Employers Federation are tourism, manufacturing and retail. – Bernama, June 30, 2020.