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122 EXIM BANK MALAYSIA
Annual Report 2020

NOTES TO THE FINANCIAL STATEMENTS

3. SIGNIFICANT ACCOUNTING ESTIMATES AND JUDGEMENT (CONT’D.)
3.3 Basis for expected credit losses (“ECL”) management overlays due to COVID-19
With the recent and rapid development of the coronavirus outbreak in Malaysia, the Government of Malaysia had initially
declared a Movement Control Order (“MCO”) from 18 March 2020 to 14 April 2020. This was then extended through
the Conditional MCO and Recovery MCO throughout 2020.
The MCO involved limitation and/or suspension of business operations, travel restrictions, and quarantine measures.
Similar measures have also been introduced in various countries, some of which the Group and the Bank have exposure
in. Whilst these measures may not have an immediate and pronounced impact on the banking industry, it is expected
to have some effect, impacting, for example the Group’s and the Bank’s allowance for ECL on loans, advances and
financing, liabilities in respect of certain insurance/Takaful products and the valuation of financial investments.
As the outbreak continues to progress and evolve, it is challenging at this juncture, to predict the full extent and duration
of its business and economic impact. The Group and the Bank will continue to monitor the progress of the outbreak
and measure and report the impact, if any, of the outbreak on their financial statements as they occur subsequent to
the reporting date. As the current MFRS 9 models may not fully reflect the ECL impact arising from the unprecedented
ongoing COVID-19 pandemic, management overlays have been applied to determine a sufficient overall level of
ECL for the financial year ended 31 December 2020. The management overlay on ECL for financial investment and
loans, advances and financing for the Group and the Bank as at 31 December 2020 are RM54,259,225 (2019: Nil) and
RM150,431,032 (2019: Nil) respectively.

4. CASH AND BANK BALANCES
Group and Bank
2020 2019
RM’000 RM’000

Cash and bank balances 122,399 62,593

5. DEPOSITS AND PLACEMENTS WITH BANKS AND OTHER FINANCIAL INSTITUTIONS
Group and Bank
2020 2019
RM’000 RM’000

Deposits and placements with:
Licensed banks 2,343,070 1,973,870
Other financial institutions 1,021,029 1,073,298
3,364,099 3,047,168

Further breakdown to deposits and placements are as follows:
For EXIM Bank 3,233,730 2,916,994
On behalf of customers and government ** 130,369 130,174
3,364,099 3,047,168

** Included in deposits and placements with licensed banks and other financial institutions are placements of the unutilised
fund from the Government of Malaysia under the MKFF Scheme amounting to RM27,387,487 (2019: RM26,119,486).