COVID-19 is an infectious disease caused by the most recently discovered coronavirus. This new virus and disease were unknown before the outbreak began in Wuhan, China, in December 2019. The virus has spread rapidly outside China to over 90 countries globally. In Malaysia, the first COVID-19 case was reported in mid of January 2020, since then ballooned to over 90 cases by early March 2020. Thus far, Bank Negara Malaysia (BNM) has announced a difficult economic outlook for the first quarter of 2020, and one of the main factors for this is due to the import and export slowdown.
Impact of COVID-19 On Malaysia SMEs
China is Malaysia’s largest export market, and a sharp drop would affect business across all sectors. COVID-19 has hampered resource movement, in and out of the country. This period is especially tough for Malaysia Small Medium Enterprises (SMEs) who are reliant on material supplies to-and-from the Chinese ports (accounting to 16% of all our exports and 19% of all our imports). The massive decline of Chinese tourists also impacted the hospitality and tourism business.
- A dramatic 0.2% to 0.3% cut in Malaysia GDP as a result of the outbreak (February 2020, TheStar)
- The ringgit depreciated by 1.3% against the US Dollar this year up to February 10, amid weaker sentiments in global financial markets (February 2020, BNM)
- Malaysia economic growth hits decade low as coronavirus poses new risks. The Central Bank unexpectedly cut its overnight policy rate to 2.50 percent, the lowest since March 2011 (March 2020, BNM)
Experts estimate that it may take a while for the situation to recover and go back to normal. By the time the dust is settled, the global economy could have lost a significant amount in revenue.
Assistance For SMEs
However, it is not all doom and gloom as some banks have reached out to provide some respite to those who are affected. CIMB Bank and CIMB Islamic Bank are providing help to those who have been impacted by the outbreak, offering to restructure and reschedule financing provided to the customers of the bank.
CIMB Bank and CIMB Islamic Bank is opening doors to all affected customers to meet with their friendly advisors, to discuss and provide advice on their payment arrangements as each case will be given the due and necessary consideration.
Apart from that, CIMB’s assurance partners (Sun Life Malaysia Assurance, Sun Life Malaysia Takaful and Berjaya Sompo Insurance) have also come to the aid of those affected by the COVID-19 virus by extending the coverage of their respective existing policies.
Special Relief Facility COVID-19 (SRF COVID-19) For SMEs
To further assist businesses affected by the COVID-19 outbreak, BNM has allocated RM2 billion in total and the disbursement will be made via banks. Both CIMB Bank and CIMB Islamic Bank will be providing the Special Relief Facility COVID-19 (SRF COVID-19) for SMEs with maximum financing amount up to RM 1 million (per SME):
1. Financing Purpose: Working Capital only
2. Financing Rate: 3.5% p.a., inclusive of guarantee fees
3. Guarantee Coverage: Up to 80% CGC Guarantee
4. Facility Type: Term Loan or Term Financing
5. Maximum Tenure: 5.5 years, including 6 months moratorium on repayments
6. Availability Period: 6 March 2020 to 31 December 2020
In reference to Bank Negara Malaysia’s announcement on 30 March 2020, regarding the allocation of a RM5.0 billion Special Relief Facility/-i(SRF/-i) to assist SMEs affected by the recent COVID-19 outbreak, CIMB Bank and CIMB Islamic Bank wish to inform that the facility has been fully utilised and as such will no longer be offered.
SMEs that require further financial assistance may explore the following options:
- You may call our Business Call Centre at 1300 888 828 (Local) or +603 2297 3000 (Overseas) or e-mail to email@example.com for more information on our financing products.