CIMB to extend support to hardest hit sectors

KUALA LUMPUR: CIMB Group Holdings Bhd will engage with borrowers from the hardest hit sectors to extend support and restructure terms, where necessary, said group chief executive officer Datuk Abdul Rahman Ahmad.

In a statement, Abdul Rahman said as the moratorium period is ending, the focus for CIMB, as with other financial institutions, will move towards a more targeted assistance approach.

He said this at the group’s 63rd Annual General Meeting (AGM) with shareholders today, held virtually for the first time. The meeting was chaired by CIMB Group chairman Datuk Mohd Nasir Ahmad, with the Board of Directors of CIMB Group of companies in attendance.

Given the (Covid-19) pandemic, and the stress it has placed on the global economy, Abdul Rahman said the financial performance of the Group for financial year 2020 would inevitably be affected.

To mitigate this, the group will be undertaking a review of its Forward23 strategy as well as increasing the rigour of cost management initiatives.

The six-month automatic moratorium in Malaysia has provided significant relief to CIMB’s customers, particularly within the bottom 40 per cent (B40) household income segment and small and medium enterprises (SMEs).

As of end-May, the moratorium has benefitted over 1.3 million retail customers and over 16,000 SMEs and corporate clients in terms of cash flow alleviation to help them face the challenging environment.

In addition, CIMB has approved over RM1 billions of relief funds to SMEs, of which RM700 million is under the Bank Negara Malaysia’s special relief fund.

The bank is also fully committed to supporting the Government’s newly launched RM1 billion national economic recovery plan (PENJANA) financing scheme for SMEs.

The three hardest-hit sectors according to The Malaysian Employers Federation are tourism, manufacturing and retail, amidst the Covid-19 outbreak and prolonged movement control order. – Bernama