MALAYSIA Tanah Tumpah Darahku


Friday, June 30, 2023

PM calls on banks to continue to help individuals, SMEs

The government has called on banks to continue offering loan repayment assistance to individuals and small and medium enterprises (SMEs) in need, including scheduling and restructuring their loans.

At the same time, troubled borrowers can get free advice and loan repayment assistance through the Credit Counseling and Management Agency (AKPK).

"I am satisfied with the commitment shown by banking institutions that are ready to help the people and SMEs," Prime Minister Anwar Ibrahim said in a press release today.

He also reminded the banking industry that they play an essential role in driving post-pandemic economic growth, especially in helping borrowers who are still affected and have difficulty moving on with their lives.

The statement followed a dialogue session with representatives of the banking sector as part of the government's ongoing efforts to obtain ideas and views about the national economy from all walks of life, held on June 28.

Bank Negara deputy governor Jessica Chew attended the dialogue session.

Present were bank representatives from AMBank, Al-Rahji Bank, Bank Islam Malaysia, CIMB, HSBC Bank, Maybank, Public Bank, RHB Bank and Standard Chartered Bank.

Anwar said the banking industry needs to continue supporting micro-entrepreneurs development, especially the vulnerable, via initiatives such as i-Tekad, which offers start-up capital and micro-financing.

The banking industry representatives also agreed that the focus is now on efforts to drive the transition towards a net zero carbon country and a broader digitalisation agenda.

The discussion also touched on new growth areas that can strengthen Malaysia's value proposition among regional and global investors.

"While the government is formulating the Madani Economic Narrative, including identifying priority sectors for future growth and investment, we must ensure the financial industry and capital market innovate in line with the changing global landscape.

"I also call for the financial industry to bring fresh ideas in maintaining Malaysia as a global leader in Islamic finance and building strength of the E&E sector," he added.

Among other things, the discussion also touched on policies to ensure the financial industry in Malaysia remains relevant and inclusive in supporting sustainable economic growth.

"The maintenance of Malaysia's sovereign credit rating at 'A-' with a "Stable" outlook by S&P Global Ratings (S&P) recently proves that the country's economic direction is on the right track.

”This follows various efforts to support growth momentum and reduce inflationary pressure,” said Anwar.

S&P on Tuesday explained that the rationale for maintaining the rating was driven by Malaysia’s strong external position and the flexibility of its monetary policy, as well as a rapid rate of economic growth compared to its peers.

Meanwhile, the stable outlook reflects the country's growth momentum strength and external position for the next two years.

S&P also acknowledged the existence of political commitment to continue post-pandemic fiscal consolidation measures.

"However, I understand that the people are still struggling with the cost of living and SMEs recovering from the pandemic may not fully feel this economy strengthening.

"Therefore, the government is determined to enhance further efforts in boosting the momentum of economic growth and implement fiscal consolidation.

“This is to ensure the wellbeing of the people and the continuity of business in line with the concept of Malaysia Madani," he added.

This is the third such session held with the Prime Minister.

Previously the Prime Minister had met with business leaders and economic experts.

All shared views will be used to form the Madani Economic Narrative, which is being drafted to chart the direction of the country's economy in the medium and long term and will be launched in August this year.

Economic policies and priorities under the unity government will also be further elaborated in the Industrial Master Plan (in August 2023), the Half-Term Review of the 12th Malaysia Plan (September 2023) and Budget 2024 (October 2023).


No comments:

Post a Comment

Note: Only a member of this blog may post a comment.