KUALA LUMPUR – Pelaburan MARA Berhad, through its financial services arm, PMB Tijari Berhad (PMB Tijari), does not foresee an increase in its non-performing financing (NPF) rate due to the COVID-19 pandemic.
PMB Tijari's NPF rate is currently at a very low level, below three percent.
Wan Sazriz Wan Zaid, Chief Executive Officer of PMB Tijari, stated that this positive result is due to the company’s efforts to coordinate repayment schedules based on the needs of the borrowers.
He explained that PMB Tijari, which does not carry a mandate for commercial profit-making, but instead focuses on developing sustainable entrepreneurs, must remain flexible and understand the constraints faced by businesses.
“After the Movement Control Order (MCO), we conducted an overall assessment, and while some businesses were unable to make repayments, it was not due to performance issues but rather the current industry situation, especially logistics,” he told reporters at the company's headquarters in KL Sentral yesterday.
Wan Sazriz further explained that the company did not offer a moratorium but was willing to provide flexibility to borrowers on a case-by-case basis.
“Previously, there were companies that failed to repay loans, and we had to take legal action, leading to bankruptcies. We had to do so because we needed the funds to offer to other entrepreneurs,” he said.
Additionally, he mentioned that PMB Tijari aims to distribute RM100 million in financing this year, though only 40 percent of that target has been approved so far.
“We will focus on sectors most affected by COVID-19, such as automotive, construction, oil and gas, and logistics. We will also raise the financing limit to RM10 million from the previous RM5 million,” he added.
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