COVID-19: MDV offers loan repayment moratorium, rescheduling for tech companies

Category: MDV in the News Post Date: March 31, 2020

COVID-19: MDV offers loan repayment moratorium, rescheduling for tech companies

KUALA LUMPUR, March 30 — Malaysia Debt Ventures Bhd (MDV) will offer a moratorium on loan repayment obligation for technology companies affected by the COVID-19 outbreak in line with Bank Negara Malaysia’s announcement on the automatic six-month deferment on loans or financing effective from April 1.

Chief executive officer Nizam Mohamed Nadzri said it was vital to support these companies in bridging the cash flow gap.

“For customers who have obtained project financing or contract financing with MDV, we are open to consider either to reschedule or restructure their financing to help improve their cash flows,” he said in a web-based seminar on Building Resilience in the Tech Sector today.

The webinar was hosted via Zoom with participation by 80 representatives from various tech-based small and medium-sized enterprises (SMEs) and startups, and it was also streamed via Facebook live.

He was in a panel session together with Cradle Fund Sdn Bhd acting group chief executive officer Razif Abdul Aziz and Malaysia Venture Capital Management Bhd (Mavcap) acting chief executive Shahril Anas Hasan Aziz.

The session was moderated by Science, Technology and Innovation Minister Khairy Jamaluddin.

MDV, a wholly owned subsidiary of the Minister of Finance Inc, is dedicated on developing the company’s newly-identified key priority areas within the technology sector, namely digitalisation and information and communications technology (ICT), green technology, connectivity and startups.

Bernama reported last month that MDV had financed 897 technology projects with more than RM11.9 billion in financing disbursements.

Nizam said MDV was committed to ease the tech companies’ burden through measures such as accelerating disbursements for customers to enable capacity building.

“We will look into expediting this, especially to those who want to pay salaries and cover the operational cost,” he added.

In his opening remarks, Khairy assured that his ministry would continue to support the SMEs and startups to ensure their survival given that they were the backbone of Malaysia’s economy with about 38.3 per cent or RM606.4 billion in contribution to the country’s gross domestic product in 2018.

“Without aggressive measures in place, the vulnerable segment of businesses such as the SMEs, they would have no choice but to close down operations, which would then create mass unemployment in the short and medium term, and this is what the government wants to avoid,” he said, adding that the government would likely introduce other economic stimulus measures in stages depending on the urgent needs and requirements of businesses and the people.