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124 EXIM BANK MALAYSIA
Annual Report 2020

NOTES TO THE FINANCIAL STATEMENTS

6. FINANCIAL INVESTMENTS (CONT’D.)
Movements in the expected credit losses on financial investments at amortised cost are as follows:

Stage 1 Stage 2 Stage 3
Lifetime ECL Lifetime
12-months not credit ECL credit
ECL impaired impaired Total ECL
RM’000 RM’000 RM’000 RM’000

At 1 January 2019 2 82,738 - 82,740
Allowance/(writeback) during the year 1 (11,499) - (11,498)

At 31 December 2019/1 January 2020 3 71,239 - 71,242
Allowance during the year 1 42,665 - 42,666
At 31 December 2020 4 113,904 - 113,908

As the current MFRS 9 models are not expected to generate levels of ECL with sufficient reliability in view of the unprecedented
and on-going COVID-19 pandemic, overlays and post-model adjustments have been applied to determine a sufficient overall
level of ECLs for the financial year ended and as at 31 December 2020. The total additional management overlay on Stage 2
ECL of RM54,259,225 (2019: Nil) was provided for a non-rated financial investment.

7. LOANS, ADVANCES AND FINANCING
Group and Bank
2020 2019
RM’000 RM’000

At amortised cost
Loans, advances and financing 5,695,247 6,769,144
Loans under MKFF scheme 8,976 9,776
Amount due from Export Credit Refinancing (“ECR”)* debtors 34,589 231,136
Staff loans 752 977
Gross loans, advances and financing 5,739,564 7,011,033
Less: Allowance for impaired loans, advances and financing:
- 12 month ECL - Stage 1 (31,569) (83,810)
- Lifetime not impaired ECL - Stage 2 (418,195) (190,300)
- Lifetime ECL credit impaired - Stage 3 (1,610,717) (1,968,281)
Net loans, advances and financing 3,679,083 4,768,642

* The amount represents block discounting of bills facility provided to participating banks in Malaysia granted under ECR
Scheme. The primary objective of the Scheme is for the promotion of Malaysian export by offering competitive rates to
banks participating in the ECR Scheme for on-lending to exporters.