FINANCIAL institutions are actively engaging with borrowers to offer assistance for loan repayments and credit facilities after the end of the loan moratorium in September, said the Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM).

ACCCIM president Ter Leong Yap said the flexible repayments include lower monthly instalments, step up repayments, and loan tenure extension.

“The targeted approach will assist many sectors and borrowers that operate and are working in highly vulnerable industries, which will take a longer time to recover,” he said in a statement.

In April, Putrajaya announced the loan moratorium as part of its strategies to address the economic fallout from the Covid-19 pandemic.

On June 28, Finance Minister Tengku Zafrul Aziz said the government was discussing with banks on extending the moratorium that was due to end in September.

However, on July 3, Bank Negara Malaysia assistant governor Adnan Zaylani Mohamad Zahid said the central bank was not considering doing so.

Ter said in a meeting with BNM yesterday, the association expressed its concerns over the upcoming expiry of the six-month moratorium.

“We hope BNM will announce the follow-up flexible repayments programme to help individuals and businesses manage their affairs through this difficult time.”

The meeting was chaired by BNM Deputy Governor Jessica Chew and attended by bank senior officials.

ACCCIM was represented Ter, Socio Economic Research Centre executive director Lee Heng Guie and ACCCIM secretariat Lee Cheng Siang.

He said ACCCIM’s Meeting and Business Event Competency Standards 1H2020 survey found that 37% of a total 721 companies have indicated that they have less than three months cash flow to cover their businesses.

This, he said, includes operations, productions, raw materials, inventory and manpower while 42% of the total respondents have about three to six months’ cash flow.

“Some 42% of respondents have less than three months of cash flow to cover debt, financing obligation.

“While, 45.7% of total respondents need an additional six months of loan moratorium while 20.7% asking for an additional three months.”

Ter said ACCCIM will collaborate with BNM to conduct engagement sessions with their members on the loan moratorium.

“This is to get them operationally, financially and mentally prepared as well as to disseminate the flexible repayments program crafted by the financial institutions to the business community.”

He added that they would like BNM to consider giving more flexibility in allowing any rescheduled and restructured (R&R) loans and financing to not be classified as credit-impaired in Central Credit Reference Information System (CCRIS) and Agensi Kaunseling & Pengurusan Kredit AKPK) until 2021.

“We welcome BNM and financial institutions continued proactive approaches to assist businesses and borrowers in loan repayments programme to support the economic and business recovery as we emerge from the pandemic.” – July 18, 2020.