KUALA LUMPUR: Malaysian banks have agreed in principle to halt loan repayment demands from the families of 54 Malaysians missing after devastating August floods in Nepal, according to advocacy group Malaysia Solidarity: Families in Hope (MASFIH).
Following a constructive meeting with Bank Negara Malaysia (BNM), insurers, and financial institutions, MASFIH spokesperson Manivannan Rethinam, in a press conference after the meeting on Monday (Oct 12), said banks will begin contacting affected families by Oct 16, with arrangements set for review within two weeks.
Because the missing individuals have not been legally declared dead, families remain in a unique financial limbo, unable to access frozen bank accounts or proceed with standard estate administration.
To address this, MASFIH submitted a 35-page proposal requesting an initial six-month moratorium that freezes interest accrual, waives penalties, and prevents loan tenure extensions.
The group also urged BNM and the Attorney General’s Chambers to establish a lawful mechanism for verified next of kin to access financial records, called for dedicated senior-level banking contacts, and encouraged financial institutions to provide immediate living assistance through corporate social responsibility programs.
The temporary reprieve offers relief to families after 48 days of uncertainty following the Aug 26 glacier collapse near the Nepal-China border.
Search and rescue operations officially ended on Oct 5 with 1,455 confirmed dead and over 5,200 missing, shifting efforts toward rehabilitation as local families await definitive answers.
