By Koong Lin Loong Chairman, SMEs Committee,The Associated Chinese Chambers of Commerce and Industry of Malaysia (ACCCIM)
As business owners adjust to the end of the automatic blanket moratorium, they might face cash flow problems as repayments resume. They should look to improving their finances by reassessing the businesses’ financial health and exploring the assistance available to them.
According to a recent ACCCIM survey, approximately 50 percent of our members have benefited from the payment deferment under Malaysia’s blanket moratorium. While 69.2 percent of SMEs require repayment assistance now that the moratorium has ended, only 55.6 percent have reached out to their banks to explore options.
Banks continue to provide various targeted repayment options to provide some relief, such as reducing monthly commitments, extending repayment schedules, as well as changing the financing terms.
It is important to note that accepting targeted repayment assistance will not be reflected in the Central Credit Reference Information System (CCRIS) record or affect eligibility for future applications for financing.
Business owners who are facing difficulties due to the end of the moratorium should contact their banks immediately to explore the options available. It is a simple and straightforward process, with a high approval rate of over 90 percent.