KUALA LUMPUR: The banking sector is suffering RM1.06 billion losses per month following the six-month loan moratorium period, Finance Minister Datuk Seri Tengku Zafrul Tengku Abdul Aziz said.
In total, by the time the moratorium period ends in September, Zafrul said the banking sector would suffer a loss of RM6.4 billion collectively.
"The banking sector is estimated to suffer the Malaysian Financial Reporting Standards (MFRS) losses of RM1.06 billion for every month the moratorium is in place.
"In total, the losses will be about RM6.4 billion, equivalent to the reduced capacity for banks to provide new loans to borrowers.
"Based on our discussion with the banks, they have expressed their commitment to continue helping the public and an announcement will be made soon regarding the moratorium," he told the Dewan Rakyat today.
Tengku Zafrul was responding to a supplementary question by former finance minister Lim Guan Eng (DAP - Bagan) who asked on the losses suffered by the banking sector following the introduction of the moratorium period.
Last week, Tengku Zafrul said borrowers must begin servicing their loans starting October since the repayment moratorium will end in September.
The finance minister reiterated that the government will help those who still need assistance by taking a targeted approach in helping borrowers restructure their existing loans.
"With the opening of the economic sectors, some individuals and businesses have been able to continue paying their loans but, there are still those who are unable to do so either because they lost their jobs or because their economic sector is still heavily impacted.
"For the (latter) group, targeted approach assistance will be considered by the banking industry and these banks are currently contacting the borrowers," he said.
As of now, Tengku Zafrul said over 93 per cent of Malaysians are enjoying the moratorium and over 95 per cent local businesses are benefitting from this initiative.
On the wage subsidy, Tengku Zafrul said RM7.8 billion has been disbursed to over 2.75 million Malaysians and the government will review the need to continue the subsidy at the end of the year.
"Efforts to help borrowers must be balanced so as to ensure the banking industry will continue to be able to fund the economic activities and support the economic recovery," he said.
According to Tengku Zafrul, Malaysia is the only country in the world which implemented the moratorium period automatically.
Other countries that introduced the moratorium period without automatic implantation are Singapore, Thailand, the Philippines, Indonesia, United Kingdom, United States, Italy and Canada.