KUALA LUMPUR: The Ministry of Entrepreneur Development and Cooperatives (MEDAC) through the Cooperative Commission of Malaysia (SKM) has extended the deferment period of repayment facility for the Malaysian Cooperative Commission Revolving Capital Fund (TMPSKM) until November 2021.

MEDAC said in a statement today that previously the ministry only offered a moratorium facility for three months ending this August.

Repayment collection for this financing will only be made from December 2021.

Minister of Entrepreneur Development and Cooperatives Datuk Seri Wan Junaidi Tuanku Jaafar said a total of 127 cooperatives with 255 financing accounts under TMPSKM had been granted moratorium previously with an estimated cost of RM8.3 million.

"MEDAC expects the additional three-month moratorium facility to benefit 1,053 cooperatives with an estimated funding deferral of RM92.4 million," he said.

He added that the six-month deferral of payment offer is also open to new TMPSKM financing applications submitted until July 31, 2021 with the collection of repayments only starting in January 2022.

Wan Junaidi said the new application process for the moratorium facility had been simplified where eligible cooperatives only needed to submit a formal application from the cooperative, statements of receipts and payments as well as bank statements for a period of three months online.

The method of granting this moratorium is in line with the automatic moratorium method offered by Bank Negara Malaysia, namely the implementation of deferment of payment is through cheques and standing instruction of the cooperative bank.

-- BERNAMA