This is simply because borrowers have larger residual income and greater flexibility to adjust discretionary expenditures under adverse circumstances, the central bank said in its Financial Stability Review report for the second half of 2019.
Citing the growing uncertainty over the duration and overall impact of the outbreak, the bank cut its 2020 gross domestic product (GDP) target for Malaysia to -0.1%, a significant drop from its earlier target of 4.5%.
Economists say revenue enhancements will help to achieve this target, and if need be, the government still has room to intervene if the economic situation worsens.
The central bank said the allocation of the Special Relief Facility (SRF) for SMEs will also be increased to RM5 billion from RM2 billion. The maximum financing rate is now lowered to 3.5% per year from 3.75% per year. The enhanced SRF is available until the end of the year.
“These are both trying and uncertain times. So we are seeking to alleviate our customers’ burdens as much as we can. Although compounding might be allowed for, we have elected not to do so in light of the pressing circumstances."
Most of the group's property developments comprise industrial and commercial properties, such as Tiong Nam Business Park.
The property developer attributed the significantly increased profitability to contribution from higher margin projects, better performance by the property investment segment and overall administrative cost savings during the period under review, it said in a statement today.
“Malaysia is the largest producer of medical gloves in the world and we are duty bound to ensure enough gloves are supplied to the hospitals and to all healthcare givers, in their fight to stave off this pervasive virus. We are expected to deliver about 225 billion pieces this year, which is about 65 % of total world requirements of about 330 billion pieces.”
ABM said member banks are in full agreement of the intent of the moratorium which it believes is a necessary solution at this point.
"... the Net Stable Funding Requirement (lowered to 80%) and the Liquidity Coverage Ratio (LCR, below 100%) for banks could be relaxed."
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