BANKS SUPPORT GOVT INITIATIVES FOR B40, M40 INCOME GROUP

KUALA LUMPUR, Nov 24  – Malaysian banks are in full support of the government’s initiative to further assist those who are adversely impacted by the COVID-19 pandemic, by offering Targeted Repayment Assistance (TRA) to borrowers under the B40 and M40 income group as well as microenterprises.

In tabling Budget 2021 recently, the Ministry of Finance announced that B40 individuals who are recipients of Bantuan Sara Hidup (BSH) can obtain a three-month deferment of monthly payments or a 50 per cent reduction in monthly payments for six months.

Meanwhile, individuals in the M40 category registered under Bantuan Prihatin Nasional (BPN) can opt for a 50 per cent reduction in monthly repayments for six months upon obtaining approval.

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MBSB Bank Bhd’s chief executive officer Datuk Seri Ahmad Zaini Othman said the bank will continue to lend a helping hand to its customers who are facing financial difficulties and help them to get back on their feet.

He said MBSB Bank’s Payment Flexibility for Targeted Groups programme -- which commenced in August -- has successfully assisted over 2,200 customers by granting moratorium or reduction in monthly payments.

Meanwhile, Bank Kerjasama Rakyat Malaysia Bhd in a statement said that these improvements should be implemented to continue to provide assistance to those in need, especially now that customers have financial solution options to suit their needs.

Bank Rakyat said it also welcomed such efforts, especially in helping to ease the burden of the affected groups such as the B40 and M40 groups in facing the effects of the COVID-19 pandemic, thus supporting the "revitalisation" phase of the country's economy.

It also hopes that the business industry, especially microenterprises, can survive and be able to grow despite the current economic situation.

Echoing other banks, Hong Leong Bank and Hong Leong Islamic Bank Bhd announced that the group will continue to make its Payment Relief Assistance Plans available with a simplified application process.

The group said it had already approved over 98 per cent of applications received since the end of the moratorium, and is confident that the simplified application process will further speed up response to customers applying for further assistance.

Group managing director and chief executive officer Domenic Fuda said the bank realised the need to be quick and efficient in responding to and processing its customers’ requests for payment relief assistance as it is crucial to ensure they received the necessary cash flow to support their families and keep their business operations going.

“On top of payment relief, the bank also has a dedicated plan to help customers manage their credit card debt through the Credit Card Conversion Relief Plan which allows customers to convert their outstanding card balance into a term loan,” he said.

Meanwhile, Bank Simpanan Nasional (BSN) said the bank would continue to focus on the needs and current situation of the nation in light of the COVID-19 pandemic that has affected the economy and the people’s well-being.

Chief operating officer Kameel Abdul Halim said during this challenging time, BSN continues to strengthen its efforts to help targeted customers from the B40 and M40 income groups as well as microenterprise borrowers.

“BSN Extended Targeted Repayment Assistance is offered to customers until June 30, 2021. Therefore, we urge customers who have not obtained this assistance to apply immediately through our website,” he added.

-- BERNAMA