Serba Dinamik, Maybank, loans, the economy and the digital banking venture between Axiata and RHB Bank were among top read stories last week.

Serba Dinamik, Maybank, loans, the economy and the digital banking venture between Axiata and RHB Bank were among top read stories last week.
Banking
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BNM: All loan borrowers with reduced income eligible for lower monthly installments

  • Bank Negara Malaysia (BNM) today reiterated that all loan borrowers who have suffered a drop in income, including salary, allowances, commissions and household incomes, are eligible for a reduction of monthly instalments according to the reduced income.
  • In a series of tweets detailing the eligibility for reduction of monthly instalments, the central bank clarified that under the latest loan repayment assistance, the B40 recipients of Bantuan Sara Hidup/Bantuan Prihatin Rakyat can choose either a three-month moratorium or reduction of monthly instalments by 50 per cent for six months.
  • “Individual borrowers who have lost their jobs can also choose either a three-month moratorium or reduction of monthly instalments by 50 per cent for six months, added BNM.

Digital banking collaboration
Economy

  • Most of us agree that fighting this Covid-19 war is more of a marathon than a sprint.
  • Hence, why are we using a sledgehammer to crack a nut? Why are we deploying more resources than necessary if we know the journey ahead could potentially be both long and challenging?
  • Just because we can, doesnt mean we should.

More than 20 million benefit

  • The government has approved RM1.193bil to 73,815 employers to continue operations and retain 642,123 workers under the Wage Subsidy Programme 2.0 (PSU 2.0) as of May 21,2021.
  • Meanwhile, the economic stimulus packages announced in 2020 have benefitted over 20 million citizens and 2.4 million businesses and as of May 21, nearly RM200bil have been channeled.
  • Under Budget 2021, from the approved allocation of RM322.5bil, a total of RM117.5bil have been spent as of April 2021.

MoF: O&G, manufacturing and E&E sectors crucial for economy

  • The Ministry of Finance (MoF) pointed out the E&E sector enables critical infrastructure globally, such as healthcare and medical devices, water systems and energy grids, as well as transportation and telecommunication networks.
  • Additionally, in 2020, about RM15bil of fresh investments in the E&E sector had been approved, set to create 20,000 more jobs for Malaysians.
  • As such, even the short-term closure of the E&E sector could disrupt supplies from Malaysia, and jeopardise essential goods in not only Malaysia but also the rest of the world, particularly during these challenging COVID times.

Corporate News
SC investigates oil services firm Serba Dinamik

  • The Securities Commission said it has begun an investigation into oil and gas services firm Serba Dinamik Holdings Bhd after the company’s auditors flagged issues last week.
  • On Friday, Serba Dinamik said KPMG had raised issues over more than RM3.5bil billion of contracts and transactions that the auditor had not been able to verify with 11 customers.
  • In an emailed response to Reuters on Monday, the regulator said it had secured documents and records from Serba Dinamik to assist its investigation, following the submission of the report from the company’s auditors.

Serba Dinamik independent directors express concern over audit mattersS&P Global Ratings downgrades Serba Dinamiks credit rating

  • S&P Global Ratings has downgraded Serba Dinamiks credit rating on reduced funding access and put it on credit watch negative on rising refinancing risks.
  • It faces heightened refinancing risk of its US dollar-denominated RM900mil Sukuk due May 2022 because of weakened market access due to a pending special independent review.
  • “We believe the timing of Serba Dinamik’s announced special independent review to resolve issues found in an audit will complicate the company’s efforts to refinance nearly RM1.7bil in debt over the next 12 months,” it said.

The Week That Was – Serba Dinamik, Axiata, RHB, lockdown, oil

  • Serba Dinamik Holdings Bhd took a heavy beating this week after KPMG said it has not been able to verify contracts and transactions worth more than RM3bil.
  • The government on Monday launched the RM40bil Pemerkasa Plus package, the ninth Covid-19 stimulus as the country grappled with fresh lockdown amid the resurgence in the number of infections and rising death toll.
  • The Organisation of Petroleum Exporting Countries and (Opec) and its allies earlier this week said they will stick to the April plan to return 2.1 million barrels a day to the market between May and July.