MOF: Madani govt continues working with BNM, banking industry to ensure financial system remains stable

KUALA LUMPUR, July 8 — The Madani government will continue to work closely with Bank Negara Malaysia (BNM) and the banking industry to ensure the country’s financial system remains stable, inclusive, and people-centred.

In a statement today, the Ministry of Finance (MOF) said that in line with these efforts, the banking industry has introduced several initiatives to assist individual customers and micro, small and medium enterprises (MSMEs).

“Those initiatives include the introduction of ‘basic’ credit cards, the removal of the RM1 fee for cash withdrawals at bank automated teller machines (ATMs), and targeted assistance for borrowers and MSMEs affected by global economic uncertainty and conflicts in West Asia,” it said.

Prime Minister and Finance Minister Datuk Seri Anwar Ibrahim said the government appreciates the banking industry’s commitment to expanding access to financial services that is easier, more affordable, and more responsible.

“With people and MSMEs facing cost pressures and cash flow challenges, financial institutions have an important role in helping their customers with prudent, agile, and humane solutions.

“I would like to express my gratitude to the country’s banking industry for heeding the government’s call to move towards a more humane financial system,” he added.

The MOF said “basic” credit cards will offer a simpler, more affordable, and inclusive credit option for those who need facilities to manage daily cash flow responsibly.

It said the new product prioritises lower financing rates over lifestyle rewards and cashback, which are commonly offered by current credit cards.

“Financing rates for such a card will be capped at 14 per cent per annum, compared with the current maximum cap of 18 per cent per annum.

“Credit limits have also been set at more controlled levels to encourage prudent credit use, while existing credit cardholders can transfer outstanding credit card balances to a basic credit card account without any fees or charges,” the statement said.

Additionally, MOF said that beginning July 1, 2026, Malaysians can withdraw cash at any bank-operated ATM in Malaysia without being charged the RM1 withdrawal fee.

The MOF said the initiative covers more than 14,000 ATMs nationwide and reflects the banking industry’s commitment to making basic financial services more accessible to the public.

For borrowers affected by global supply shocks and the West Asia conflict, the ministry said that banks are also providing targeted assistance based on individual needs and cash-flow situations.

The types of assistance include temporary payment moratoriums, reduced instalments and loan term extensions.

“Since late April 2026, banks have received and processed rescheduling and restructuring applications involving financing totalling more than RM4.7 billion for over 1,100 borrowers.

“Financing to the SME sector continues to be disbursed, with outstanding SME financing growing 5.3 per cent in May 2026,” it added.

Under the RM5 billion SME Stabilisation Relief Facility (SME SRF), about RM1 billion in financing had been approved as of June 25, 2026, for around 1,500 SMEs that were significantly affected by the conflict in West Asia.

The MOF said the banking industry is also committed to processing applications within seven working days, with roughly RM4 billion of the allocation still available for further support.

The ministry encouraged affected borrowers and MSMEs to contact their banks early to obtain appropriate assistance.

“They can also receive additional support through guarantee schemes under the Syarikat Jaminan Pembiayaan Perniagaan (SJPP) and the Credit Guarantee Corporation (CGC), as well as advisory services and financial assistance through the Credit Counselling and Management Agency (AKPK),” he said. — Bernama