BNM has issued a FAQ on the six-month loan repayment moratorium, which clarified that borrowers need not apply as the process is automatic.

The central bank also clarified that the interest will continue to accrue during the deferment period. This could result in higher subsequent instalment amount or an extension of the loan tenure.

Below is the FAQ in full related to housing and term loan:

Q. What is deferment of loan or financing repayment?

it is a temporary deferment or suspension of loan/financing repayment obligation (principal and interest) for a limited period of time.

During this period, borrowers/customers with loan/financing that meet the conditions do not need to make any repayment, and no late payment charges or penalties will be imposed.

Interest/profit will continue to accrue on loan/financing repayments that are deferred and borrowers/customers will need to honour the deferred repayments in the future. Loan/financing repayment resumes after the deferment period.

Q. What is the objective of the deferment package?

The aim of this package is to provide some relief to individuals and businesses who face temporary financial constraints arising from the Covid-19 pandemic.

We hope that this will help individuals and businesses facing financial adversities to cope with challenges during this period. Loan/financing repayment resumes after the deferment period.

Q. Which loan/financing qualifies for the deferment?

For individuals and small and medium enterprises (SMEs), the deferment in conventional loans or Islamic financing repayment obligations (except credit cards) are automatically effected by banks and development financial institutions (DFIs) if the loans/financing meet these criteria:

not in arrears exceeding 90 days as at 1 April 2020; and

denominated in Malaysian Ringgit.

Meanwhile, corporate borrowers/customers may request for a moratorium on loan/financing repayment from their respective banks.

Q. Can I ask for more than six months deferment?

The deferment is only for six months. Please contact the bank if you require a longer deferment period.

Q. If I opt for the deferment, will my CCRIS records be adversely affected?

No. However, interest/profit will continue to accrue on loan/financing repayments that are deferred and borrowers/customers will need to honour the deferred repayments in the future.

Borrowers/customers are advised to contact their banking institutions to discuss on the options available to resume repayments after the deferment period.

Q. Do I need to apply?

No. All individual and SME loans/financing (excluding credit cards) that meet the criteria will automatically qualify for the deferment.

Q. My loan/financing is in default, can I qualify? Can loans under rescheduling and restructuring (R&R) program be eligible for the deferment package?

Loans/financing accounts that are already more than 90 days in arrears, will not qualify for the deferment. Borrower/customers are advised to approach their banks to seek assistance.

Loans/financing under R&R program is also eligible for the deferment subject to meeting the criteria.

Q. How is the deferment package different from the other loan/financing moratoriums announced by banks recently?

Banks and development financial institutions (DFIs) have been proactive in responding to the needs of their borrowers/customers with various rescheduling and restructuring packages offered to assist affected borrowers/customers. Such efforts are welcomed and encouraged during these challenging times.

Borrowers/customers that have accepted assistance from banks and DFIs to reschedule and restructure their loans/financing can opt out of such arrangement, if they wish to do so.

Q. Which banks offer this deferment package?

All licensed banks, licensed Islamic banks and prescribed development financial institutions (DFIs) regulated by BNM will offer this deferment flexibility. Borrowers/customers that meet the eligibility criteria can avail themselves to this flexibility automatically.

Q. How do I know if my bank has enrolled my loan/financing into the deferment package? How do I know if I have qualified?

Banking institutions will provide individuals and SME borrowers/customers with adequate information that their loan/financing repayments have been deferred under this scheme.

Such information may be provided through a general advisory issued to borrowers/customers through appropriate channels, and/or published on banking institutions’ websites.

Q. I want to continue with my loan/financing repayments. How do I opt-out of the automatic deferment package?

You should contact your bank if you wish to opt-out of the automatic deferment package, or continue to make timely and full repayment of your loan/financing.

Q. I work in the tourism sector and have been badly affected by recent events, I have been struggling to meet my monthly mortgage payments since January and my savings are soon running dry. Do I qualify for the deferment package?

Yes, provided that your loan/financing is not in arrears for more than 90 days as at 1 April 2020.

Q. I run a small business which has been severely affected by Covid-19, if business does not improve, I will soon be defaulting on my car and personal loans/financing? Do I qualify for the deferment package?

Yes, provided that your loans/financing are not in arrears for more than 90 days as at 1 April 2020.

Q. Will I be charged additional interest on the repayment amount that is deferred by 6 months during the period?

For conventional loans, interest will continue to be charged on the outstanding balance comprising of both principal and interest portion (i.e. compounded) during the moratorium period.

For Islamic financing, profit will continue to accrue on the outstanding principal amount. Such profit however will not be compounded in line with Shariah principles.

Banks are however not allowed to impose late penalty charges on the deferred amount. In other words, the loan/financing repayment is just deferred by 6 months.

Q. What would happen to my loan/financing repayments after the deferment package period? How does being in the deferment package affect my interest payments after the 6-month period? Is there an increase in monthly payments, or longer tenure?

Interest/profit will continue to accrue on loan/financing repayments that are deferred. This means accumulated repayment amount during the deferment of repayment period will be added to the outstanding loan/financing amount.

Borrowers/customers are advised to contact their banking institutions to discuss on the suitable workout plans to repay the principal and interest accrued during the deferment period. This may include higher subsequent instalment amount or an extension of the loan/financing tenure.

Q. Does this deferment package apply to newly approved/disbursed loans?

It applies to all loans/financing outstanding as at 1 April 2020.

Q. Would my loans with other non-bank credit providers qualify for this deferment package?

No, this is only applicable to loans or financing offered by financial institutions regulated by Bank Negara Malaysia, namely banks and development financial institutions.

Q. If a corporate opts in for a loan or financing repayment deferment package, would it still be able to get new financing from banks?

Yes. The credit decisions of financial institutions are subject to their respective internal credit policies and assessment.

Q. As a corporate, what would be the criteria to opt-in?

Unlike individuals and SME borrowers/customers, corporate borrowers/customers should refer to their banks for the deferment and rescheduling and restructuring of their loans/financing.

In addition, these loans/financing must meet these criteria: • not in arrears exceeding 90 days as at 1 April 2020; and • denominated in Malaysian Ringgit.

Q. I have a loan/financing which is automatically deducted from my salary. Do I qualify for the deferment?

Yes. Please inform your company to stop the salary deduction if you wish to have your loan/financing repayments deferred. You should also contact your bank to inform them accordingly.

Q. How should I notify the bank that I wish to opt-out of the deferment offer?

Please respond to the notification sent by the bank and informed that you wish to opt-out of the automatic deferment package, or continue to make timely and full repayment of your loan/financing.

Q. Will the bank automatically stop the repayment requirement if I did not respond to their notification?

Yes.

Source: TheStar.com.my

 

 

Automatic moratorium on loan repayments will be granted to small and medium enterprises (SMEs) and individuals — an additional measure taken by Bank Negara Malaysia to relieve the burden on businesses and households that are expected to be affected by the COVID-19 outbreak.

The central bank has written to the commercial bank to inform them of the new measure that will last for six months.

In a document sighted by The Edge, BNM noted that to ease the cash flow of SMEs and individuals that will be affected by the COVID-19 outbreak, banking institutions will grant an automatic moratorium on all loans/financing repayments/payments, principal and interest (except for credit card balances) to individuals and SME borrowers/customers for a period of six months from April 1, 2020.

The automatic moratorium is applicable to the loans/financing that are not in arrears exceeding 90 days as at April 1, 2020 and denominated in the ringgit, it added.

“Banking institutions should provide individuals and SMEs with adequate information on how the suspended loan or repayments will be treated during the moratorium period and options for the borrowers/customers to resume repayments/payments after the moratorium period, particularly if they anticipate that they may still face some difficulty meeting scheduled repayments/payments,” BNM said in the letter.

As for outstanding credit card balances, BNM said banking institutions shall offer customers the option to convert their credit card balances into a term loan/financing of a tenure of not more than three years and an effective interest/profit rate of not more than 13% per annum.

“The implementation of the Net Stable Funding Ratio (NSFR) requirement shall continue to be effective on July 1, 2020. However, the minimum NSFR requirement applicable on July 1, 2020 is lowered to 80%. Banking institutions shall maintain a minimum NSFR requirement of 100% from September 2021,” the letter stated.

The Edge has reached out to BNM on this and will update the central bank’s response.

Source: EdgeProp.my

 

Malaysia’s Movement Control Order (MCO) currently taking place to curb the spread of the COVID-19 virus outbreak in the country must include property management in its list of essential services.

“This is a major issue. Property management is not considered an essential service although it ensures all services such as cleaning, security, lift maintenance and utilities supply are not interrupted in buildings.

“This is especially so in multi-storey residential buildings. Residents, users and the public at large rely on property managers to ensure that their buildings continue to be safe and function as normal,” the Malaysian Institute of Property and Facility Managers (MIPFM) president Adzman Shah Mohd Ariffin told EdgeProp.my via email.

Unfortunately, with the lack of understanding from the government, the property managers are not given the authority to carry out their duties during the MCO period, he lamented.

“Therefore, we urge the government to quickly add property management services in the list of essential services so that property managers can carry out their duties diligently and without any disruption. At present, property managers risk exposure to COVID-19 as well as being arrested by the authorities in carrying out their duty,” he pointed out.

Echoing the call, Henry Butcher Malaysia (Mont Kiara) Sdn Bhd executive director Low Hon Keong said without property management, essential services such as lifts, rubbish collection, electricity and water supply may not be delivered properly.

“It can be said that a strata scheme is incomplete without property management. Hence, whether we like it or not, property management is vital in ensuring the operational aspects of a residential scheme. Otherwise the welfare of the building occupants might be jeopardised,” Low shared with EdgeProp.my in a separate email interview.

He added that the Ministry of Housing and Local Government (KPKT) and local authorities (especially the Commissioner of Buildings) could provide clearer and standardised written directions to property managers.

“As property managers, we are managing a significant number of sites which are located at various places across the country. Hence, we cannot afford to be receiving different local authority directions on an issue that is considered a global issue.

“For instance, the closure of management offices and common facilities such as swimming pools and more. There is no definite guideline on these even though we have thousands of strata schemes and gated-and-guarded properties in the country,” said Low.

“The Board of Valuers, Appraisers, Estate Agents and Property Managers
(BOVAEP) could also be more involved in advising its members so that we have a clearer course of action,” he added.

He said the property management industry is facing an extremely challenging period with the outbreak of COVID-19.

“The decision to implement the MCO is a good and brave decision made in view of the increasing number of infected cases. However, from the perspective of a property manager, this order has unlocked a set of new challenges that we need to tackle urgently.

“Since none of us has gone through this situation before, this is the time for us to utilise our experience and common sense in providing practical solutions in compliance with the MCO,” said Low.

Source: EdgeProp.my

 

Yet another proposed residential development by Grandpalms Development Sdn. Bhd. (subsidiary of WHH Land) at Bukit Mertajam. Located along Jalan Machang Bubok, this development is only a mere minutes drive from Bukit Mertajam town centre. Neighboring communities include Tropicale Residency, The Navens, Hillpark Residences, and a few others.

This development comprises three 19-storey residential towers, featuring a total of 580 condominium units with underground car parks.

The project is still pending for approval. More details will be available upon official launch.

Project Name: (to be confirmed)
Location : Machang Bubok, Bukit Mertajam
Property Type : Condominium
Total Units : 580
Land Tenure : (to be confirmed)
Indicative Price : (to be confirmed)
Developer : Grandpalms Development Sdn. Bhd. (WHH Land)

Location Map:

 

Penangites living on the island are advised not to go to the mainland side of the state without a valid reason, Northeast District Police chief Assistant Commissioner Soffian Santong said today.

He said police will conduct a roadblock at the entrance to the Penang bridge and stop those without valid reasons from driving to Seberang Perai.

“If you live on the island, you are not allowed to go to Seberang Perai without valid reasons, so we will instruct those without valid reasons to take the road back to town or Bayan Baru,” he said in a brief press conference while checking on one of the roadblocks set up on the island at Tun Dr Lim Chong Eu Expressway.

He said only those who are able to provide valid reasons such as those working in the essential services sector with proof will be allowed to go.

Soffian said there will also be roadblocks on the mainland side to question every motorist coming from the bridge.

Today, a total 99 army personnel have been deployed to assist the police in the northeast district on the island.

Soffian said three army personnel will be stationed at each of the four roadblocks in the district at any one time.

“The roadblocks at Batu Ferringhi, Paya Terubong, Batu Uban and here will be held round the clock so there will be four different shifts for those on duty,” he said.

Additionally, he said 10 police multi-purpose vehicles (MPV) will patrol the streets of George Town throughout the day.

He said army personnel will also be assisting the patrol teams especially at popular recreational spots and places of worship.

A total of 351 personnel from the police force are involved in these enforcement actions in the northeast district.

Soffian said many people are still taking the movement control order (MCO) lightly.

“Though many we stopped at roadblocks had valid reasons such as working in essential services, there are still those who are out visiting friends and relatives,” he said.

Soffian said there was even one man who drove from Bayan Baru to George Town purportedly to buy food because the food in town was “more delicious”.

“Some are coming back from the mainland without any reasons for being there in the first place,” he said.

Soffian reminded the public to stay home at all times and to adhere to the MCO.

“This is not a holiday, please stay home,” he said.

Source: MalayMail.com