In line with the announcement of “Kerangka Inisiatif Tambahan Khas: Kita Prihatin” on 29th July 2020, the Ministry of Entrepreneur Development and Cooperatives (MEDAC) responded to the Prime Minister’s call for an extension of the moratorium and targeted bank assistance. This initiative, in particular, is to reduce the People’s financial burden as well as the businesses’ cash flow challenges following the end of the moratorium period on 30 September 2020.
In this regard, financing agencies under MEDAC namely; Bank Rakyat, SME Bank, TEKUN Nasional, Perbadanan Nasional Berhad (PNS) and Suruhanjaya Koperasi Malaysia (SKM) have taken proactive initiatives by seeking feedback on moratorium extension applications and targeted bank assistance from account owners, mainly involving Small and Medium Enterprises (SMEs).
As of 8th October 2020, a total of 18,670 moratorium extension applications and targeted bank assistance with a value of RM6.704 billion received via MEDAC financing agencies. From the total, 10,710 applications with a value of RM6.04 billion or 90.15% applications were approved.
The approval of extension of moratorium and targeted bank assistance under the MEDAC funding agency are as follows:
However, a total of 5,422 applications with the value of RM622.34 million or 9.28% were rejected due to:
- Applicant’s income is not affected;
- Applicants fail to provide proof of impaired income;
- Rescheduling/refinancing of Financing Payment by The Credit Counselling and Debt Management Agency (AKPK); and
- Overdue of more than 90 days with no source of repayment.
From the total, only 1.7% of rejected applications were from Small and Medium Enterprises (SMEs). The remaining 98.3% were individual applications. Meanwhile, the remaining applications of 2,538 with a value of RM41.4 million or 0.57% are still in process and consideration by the agency.
MEDAC has given and will continue to provide unwavering commitment in its efforts to empower the entrepreneurial ecosystem in line with the National Entrepreneurship Policy 2030 (NEP2030).