Kuala Lumpur, Tuesday, 1 June 2021 – In view of the Movement Control Order with total lockdown which is effective from 1 June 2021 as announced by the government, The Association of Banks in Malaysia (ABM) recognises the concerns of the public and businesses that will be affected by the temporary cessation of business activities.  ABM would like to assure the public that its member banks, which comprise the conventional commercial banks, will continue to make available financial assistance to all affected borrowers who are in need of such assistance.

Currently the financial assistance from member banks is covered under the Targeted Repayment Assistance (TRA) programme which has been in place since 1 October 2020.  Under the latest TRA programme, any individual customers who have lost their employment are eligible upon contacting their banks for either:-

1. Loan deferment (moratorium) for a period of 3 months; OR
2. 50% reduction in the monthly instalment payment for a period of 6 months.

Those who have experienced a reduction in income (including household income) are eligible for a commensurate reduction in monthly instalments.  B40 borrowers who are registered under Bantuan Sara Hidup (BSH) / Bantuan Prihatin Rakyat (BPR) are eligible to opt for this specific repayment assistance.  Microenterprises with loan facilities of not more than RM150,000 may also opt for this specific repayment assistance.

In addition, ABM wishes to announce that the TRA is now expanded to include all SME businesses that are not permitted to operate during the Movement Control Order with total lockdown, i.e. those that are not on the list of permitted sectors as issued by Majlis Keselamatan Negara. 

All affected borrowers (individuals, microenterprises and SMEs) who wish to avail of this latest TRA only need to contact their respective banks to indicate which option they want to choose.  The banks will automatically approve all selections by borrowers that fulfil the criteria stated above.

For all other affected borrowers, member banks have in place bespoke/customised rescheduling and restructuring schemes to help alleviate their burden.

ABM member banks have simplified the process for TRA and are committed to making it convenient for borrowers to opt for the assistance package they need.  In most cases, borrowers should be able to make the selection on-line or over the phone.  Borrowers may also do so at bank branches, but are advised to check on their respective banks’ websites for information on any changes in operating hours or arrangements for over-the-counter services in view of the continuing restrictions owing to the pandemic.  Borrowers may refer to their respective banks’ websites for the contact information or visit ABM’s website, https://www.abm.org.my/assistance-for-eligible-borrowers-affected-by-covid-19.

As announced by Bank Negara Malaysia, borrowers’ Central Credit Reference Information System (CCRIS) records will not be affected by TRA received in 2021. As such, borrowers do not have to worry about the impact on their future credit profile.  Accordingly, ABM urges all borrowers including SMEs who are affected by the COVID-19 containment measures to come forward and contact their banks via the banks’ official channels to discuss the best options available. 

Further, Agensi Kaunseling dan Pengurusan Kredit (AKPK) stands ready to provide the necessary advice and guidance to both individual borrowers and microenterprises, including options for debt restructuring.  In addition to contacting the banks, microenterprises can also request for assistance through AKPK’s dedicated micro business helpdesk at www.akpk.org.my/microhelpdesk. The virtual helpdesk provides free financial advice and facilitates applications for repayment assistance.

We would like to remind borrowers to be wary of scammers and only apply for any financial assistance through official bank channels. Borrowers are also advised not to deal with any third parties claiming to be agents/representatives of the banks on matters relating to repayment assistance. Our member banks do not appoint or engage third parties or agents for purposes of the repayment assistance.

Up to 26 March 2021, banks have received 1.6 million applications for TRA out of which 95% have been approved.  ABM remains fully committed to the targeted assistance approach as the best and optimal approach to assist those borrowers affected by the pandemic to ensure help is focused towards those in need, whilst ensuring the resiliency of the financial system is preserved and interest of bank depositors and shareholders continue to be safeguarded.