Malaysia’s banking industry has processed loan rescheduling and restructuring applications involving more than RM4.7 billion in financing for over 1,100 borrowers as households and businesses continue to face financial pressure from global uncertainties and the impact of conflicts in West Asia.
The Ministry of Finance said the assistance formed part of targeted measures introduced by banks to support borrowers affected by supply disruptions and economic challenges. The support includes temporary repayment deferments, reduced instalments and extensions of loan tenures based on borrowers’ financial conditions.
The government said the move reflected the banking sector’s response to the government’s call for a more people-focused financial system that supports individuals and micro, small and medium enterprises (PMKS).
Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim welcomed the banking industry’s efforts to provide more accessible and responsible financial support.
“Amid the pressure on people and PMKS from rising costs and cash flow challenges, financial institutions play an important role in helping their customers through prudent, agile and humane solutions. Therefore, I would like to record my appreciation to the country’s banking industry for responding to the government’s call to move towards a more humane financial system,” he said.
Beyond loan assistance, banks are also introducing several measures aimed at improving financial accessibility, including the Basic Credit Card and the removal of the RM1 fee for cash withdrawals at bank-operated ATMs nationwide.
For SMEs, outstanding financing continued to expand, recording 5.3% growth in May 2026. Under the RM5 billion SME Stability Assistance Facility, around RM1 billion in financing had been approved as at 25 June 2026 for about 1,500 SME borrowers significantly affected by the West Asia conflict.
Banks have also committed to processing applications for assistance within seven working days, with about RM4 billion in remaining allocation available for further support.
Affected borrowers and SMEs have been encouraged to approach their banks early to explore suitable assistance options. Additional support is also available through guarantee schemes under Syarikat Jaminan Pembiayaan Perniagaan (SJPP) and Credit Guarantee Corporation Malaysia Berhad (CGC), alongside financial advisory services from Agensi Kaunseling dan Pengurusan Kredit (AKPK).
The Ministry of Finance said it will continue working with Bank Negara Malaysia and the banking industry to ensure the financial system remains stable while providing support to households and businesses facing ongoing challenges.
