Prime Minister Tan Sri Muhyiddin Yassin has announced a moratorium extension and targeted bank assistance that focuses on those in need.

In yesterday’s address, he said the extension and aid serves to benefit three million individuals and small and medium enterprises (SMEs).

Here are the details of the targeted moratorium and bank assistance:

Individuals who lost their jobs in 2020 and still haven’t got a new job will be offered the moratorium for another three months (up to Dec 31). After the three months, the moratorium can be extended by the banks depending on the individual’s situation.

For individuals who have had their wages cut, their monthly installments will be decreased in tandem with their pay cuts - for example housing and personal loans. This will be for at least six months and an extension can be given subject to the individual’s current salary.

For hire purchase financing, affected borrowers will be offered revised instalment schedules that are consistent with the Hire-Purchase Act 1967.

In addition, the Prime Minister also said that banks have given their commitment in the form of various measures to assist borrowers, such as only paying the interest for a set time frame, extending the duration of the loan to reduce monthly repayments and other forms of relief until the borrowers were financially stable to start repaying in full.

This flexibility provided to borrowers during this period will not appear in the CCRIS (Central Credit Reference Credit System) of borrowers, said Bank Negara Malaysia (BNM) in a statement.

BNM also said that affected parties may approach relevant "one-stop" centres to work out appropriate assistance packages. For individuals, that means the Credit Counselling and Debt Agency (AKPK) and Small Debt Resolution Scheme for SMEs.

Borrowers who qualify for this can contact their banks from 7th August onwards to apply.