Missing Malaysians In Nepal: Families Seek Financial Relief Framework

KUALA LUMPUR, Oct 12  (Bernama) -- Representatives of families of 54 Malaysians still missing following the Nepal flood disaster held a meeting with Bank Negara Malaysia (BNM) today to discuss measures to ease their financial commitments.

Solidariti Malaysia: Keluarga Dalam Harapan (MASFIH) spokesperson Dr Manivannan Rethinam said the meeting yielded positive results, with most banking and financial institutions expressing their willingness in principle to assist, including considering a moratorium on loan repayments and collection actions against the affected families.

He said he had presented a 35-page written proposal titled “Proposal for a Special Humanitarian Financial Relief, Liability Standstill, Asset Protection, and Business Continuity Frameworks” to representatives of BNM, banks and financial institutions at the meeting.

“This is not a case of families being unable to pay. Rather, the bank accounts and investments of their missing family members cannot be accessed because their status has yet to be determined, whether they are dead or alive.

“We need a more structured framework so that BNM can oversee the assistance provided, while giving families a clear picture of the available support,” he told a press conference after the meeting.

Manivannan said the banks involved had also agreed, for the time being, not to pursue the affected families over outstanding loan repayments.

He added that BNM had agreed to appoint five representatives to coordinate the proposed mechanism for the victims' next of kin.

Manivannan said MASFIH had also highlighted the need to ensure that any moratorium would not create further financial burdens through accrued interest, penalties or extended loan tenures.

“A moratorium may mean that repayments are suspended for six months or a year, but if interest continues to accrue, penalties are imposed or the loan tenure is extended, the burden on families remains.

“We explained this today, and they understood the need to consider the matter comprehensively,” he said.

He also called for urgent intervention by the Attorney-General's Chambers (AGC) to examine legal mechanisms that would allow verified next of kin to obtain financial information about missing individuals, including records under the Central Credit Reference Information System (CCRIS).

Manivannan said the tragedy had entered its 48th day, leaving families uncertain about the fate of their loved ones while they continued to manage financial obligations and daily affairs.

On Oct 3, BNM said financial service providers were prepared to assist and support families affected by the tragedy, in accordance with relevant laws and regulations.

The assistance could include repayment deferments, waivers of fees and charges, and flexibility in documentation requirements while the relevant legal processes were completed.

The floods and debris flows on Aug 26, triggered by an ice and rock collapse in the upper catchment of Lhende Khola in Tibet, were reported to have killed more than 1,450 people, with thousands more still unaccounted for.

Meanwhile, BNM said in a statement that the meeting had agreed to have designated contact persons from financial service providers reach out to the respective families to help the next of kin navigate the administrative processes involved.

The meeting was attended by representatives of the Association of Banks in Malaysia (ABM), the Association of Islamic Banking and Financial Institutions Malaysia (AIBIM), Persatuan Insurans Am Malaysia (PIAM), the Life Insurance Association of Malaysia (LIAM), the Malaysian Takaful Association (MTA) and financial service providers.

BNM said the meeting was organised following its earlier statement to better understand the specific issues and challenges faced by the next of kin in managing the financial affairs of the missing individuals, and to work towards appropriate and reasonable solutions.

“At the meeting, BNM expressed its deepest sympathies for the families affected by this tragedy. 

“BNM and representatives of the financial industry also reiterated their readiness to provide appropriate relief and support to the affected families, in accordance with applicable laws and regulatory requirements,” it said.

-- BERNAMA