Loan Moratorium Will Not Be Extended

The banking sector has said that borrowers will need to start repaying their loans from October. 

Over the past week both the Federation of Malaysian Manufacturers (FMM) and Malaysians Trade Union Congress (MTUC) have urged the government to extend the moratorium for businesses and for Malaysians in the B40 and M40 group. 

However Bank Negara Malaysia (BNM) told analysts recently that there will be no blanket extension of the moratorium, but banks in the country will continue to offer targeted financial assistance in the form of restructuring and rescheduling (R&R) to borrowers who are unable to meet their monthly loan commitments.

MIDF Research analyst Imran Yassin Md Yusof expects to see an increase in non-performing loans once the moratorium period ends. 

“Nevertheless, we expect the banks would have identified potential troubled borrowers and would have put a lot of effort in restructuring and rescheduling these potentially troubled loans and this may moderate the level of NPLs,” he told StarBiz.

We genuinely hope that the six-month moratorium has allowed all of you the breathing space to realign your finances and that come October you will be financially capable of fulfilling your loans. In the off chance that you are considering downsizing or removing a financial commitment in the form of your car then allow us to help you with Carlist.my's Essential Services programme.