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The MADANI Government has endorsed a package of new banking industry initiatives designed to strengthen financial support for households and micro, small and medium-sized enterprises (MSMEs), describing the measures as a reflection of a more compassionate and people-centred financial system amid mounting cost-of-living pressures and global economic uncertainty.
The initiatives include the introduction of a Basic Credit Card offering lower financing costs, the removal of RM1 interbank ATM cash withdrawal charges nationwide and expanded targeted assistance for borrowers and businesses affected by supply chain disruptions and the ongoing conflict in West Asia.
Prime Minister Datuk Seri Anwar Ibrahim said the Government appreciated the banking industry's commitment to expanding access to affordable, inclusive and responsible financial services.
"In a situation where the people and MSMEs are facing cost pressures and cash flow challenges, financial institutions play an important role in helping their customers with prudent, responsive and compassionate solutions. Therefore, I would like to express my appreciation to the country's banking industry for responding to the Government's call to move towards a more humane financial system," Anwar, who also serves as the Finance Minister said in a statement today.
The newly introduced Basic Credit Card is intended to provide consumers with a simpler and more affordable credit facility focused on responsible day-to-day cash flow management rather than lifestyle rewards or cashback incentives commonly associated with conventional credit cards.
Under the initiative, the annual financing rate will be capped at 14 per cent, significantly below the current maximum rate of 18 per cent. Credit limits will also be set at more conservative levels to encourage prudent borrowing, while existing cardholders will be allowed to transfer outstanding balances to the new Basic Credit Card without incurring transfer fees or additional charges.
The banking industry has also abolished the RM1 fee previously imposed on interbank ATM cash withdrawals. Effective from 1 July 2026, Malaysians can withdraw cash free of charge from any ATM operated by participating banks across the country, covering more than 14,000 machines nationwide.
The Government said the move demonstrates the banking sector's commitment to making essential financial services more accessible and affordable for all Malaysians.
To support borrowers affected by global supply chain disruptions and the conflict in West Asia, banks are also providing targeted financial relief tailored to individual cash flow circumstances. Available assistance includes temporary repayment deferments, reduced instalments and extended loan tenures.
Since the end of April 2026, banks have processed loan restructuring and rescheduling applications involving financing exceeding RM4.7 billion for more than 1,100 borrowers.
Financing support for the MSME sector has also remained resilient, with outstanding MSME financing expanding by 5.3 per cent in May 2026.
Under the RM5 billion SME Stability Support Facility, approximately RM1 billion in financing had been approved as of 25 June 2026 for around 1,500 SMEs significantly affected by the conflict in West Asia.
The banking industry has committed to processing eligible applications within seven working days, while approximately RM4 billion remains available under the facility to support additional businesses requiring assistance.
Borrowers and MSMEs experiencing financial difficulties are encouraged to engage with their respective banks as early as possible to discuss suitable assistance options.
Additional support remains available through guarantee schemes provided by Syarikat Jaminan Pembiayaan Perniagaan (SJPP) and Credit Guarantee Corporation (CGC), as well as financial advisory and debt management services offered by the Credit Counselling and Debt Management Agency (AKPK).
The Government said it will continue working closely with Bank Negara Malaysia and the banking industry to ensure Malaysia's financial system remains stable, inclusive and responsive to the needs of both the people and businesses. - July 8, 2026
