The Malaysia Ministry of Finance welcomed banking industry initiatives aimed at easing pressure on individual customers and micro, small and medium-sized enterprises facing higher living costs and uncertainty linked to global economic conditions and conflict in West Asia. The measures include a Basic Credit Card offering simpler and lower-cost borrowing, removal of the MYR 1 fee for cash withdrawals at bank-operated ATMs nationwide from July 1, 2026, and targeted repayment relief for affected borrowers and MSMEs. The Basic Credit Card will carry a financing rate capped at 14% a year, compared with the current maximum of 18%, and will have a lower credit limit intended to encourage more prudent use of credit. Existing cardholders will be able to transfer outstanding credit card balances into a Basic Credit Card account without charges. The ATM fee waiver covers more than 14,000 ATMs in Malaysia. For borrowers affected by the global supply crisis and the West Asia conflict, banks are offering temporary repayment deferments, lower instalments and loan tenor extensions. Since end-April 2026, banks have received and processed loan rescheduling and restructuring applications covering more than MYR 4.7 billion of financing for more than 1,100 borrowers. Under the MYR 5 billion SME Stability Support Facility, about MYR 1 billion had been approved as of June 25, 2026 for around 1,500 SME borrowers significantly affected by the West Asia conflict, with about MYR 4 billion still available and banks committing to process applications within seven working days. The ministry said the government will continue working with Bank Negara Malaysia and the banking industry, and encouraged affected borrowers and MSMEs to approach their banks early for support.

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