KUALA LUMPUR – The banking institutions, according to Bank Simpanan Nasional Bhd’s (BSN) chief business officer Mujibburrahman Abdul Rashid, are now looking at the borrowers’ future strategies especially on how they mitigate COVID-19 related impacts instead of relying solely on past historical data to determine the feasibility of their loan applications.
“We will look at your action plans. Let’s say if there is a second wave of COVID-19, what is your business and marketing strategies that you can put in place to ensure this time around you are more resilient and are you ready for that?” he said, as reported on Bernama.
He said this during a panel session at Domestic Tourism In The New Normal Webinar yesterday.
Mujibburrahman also urged local tourism players, whose businesses are impacted by COVID-19, to opt for loan or financing rescheduling and restructuring (R&R).
He said many industry players had the inaccurate perceptions that R&R is an element of default, hence, shun away from seeking that financial assistance.
“No, R&R is not an element of default but a relief to help business owners to ease their burdens,” he said.
He said seeking R&R assistance would not only help to ease the burden of business operators but also assist in reducing banks’ credit cost to ensure the entire banking landscape could continue in helping the tourism sector moving forward.
Mujibburrahman said industries, including tourism, which are badly impacted by COVID-19 should seek financial assistance to ensure the sustainability of the country’s economic landscape.
“We cannot live by just eliminating certain sectors, for instance, tourism sector which has been hit hard by COVID-19, because by doing so, we are killing the entire country.
“We need to protect all the important segments which are contributing to the country’s gross domestic product growth and job market,” he said.
He also urged more communications and coordinations engagement between banks and industry players to ensure a win-win situation so that both parties could progress further in post-COVID-19 period.
Recently, Tourism, Arts and Culture Minister Datuk Seri Nancy Shukri said tourism is one of the hardest-hit sectors by the COVID-19 pandemic.
The industry is expected to lose about RM45 billion in the first half of this year.