Analysis on Malaysian Non-Performing Loans and Financing Sale, Effects of Covid-19 and its Legal and Regulatory Framework

Abstract

With Covid-19 banking and financial relief measures coming to an end, it is viewed that there will be a growth trend and change in Malaysia moving forward surrounding
financial institutions behaviour in dealing with their non-performing assets including disposing their non-performing loans and non-performing financing comprising of both
unsecured and secured products by way of sale and purchase to third parties. The purpose of this article is to analyse the market trends in disposing non-performing loans and nonperforming financing by way of sale and purchase to third parties in Malaysia during the last several years taking into consideration all Covid-19 moratoriums measures and relaxing on the underwriting process by financial institutions. The article will examine the prevailing legislations and regulations that governs the sale activity as well as considering the recent Financial Sector Blueprint 2022-2026. The author intends to adopt a multi-method research strategy primarily doctrinal legal research as well as qualitative research approach. This article aims to contribute to the legal fraternity and people in general with an overview of the current position in Malaysia.