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130 EXIM BANK MALAYSIA
Annual Report 2020

NOTES TO THE FINANCIAL STATEMENTS

7. LOANS, ADVANCES AND FINANCING (CONT’D.)
(x) Overlays and adjustments for ECL amid COVID-19 environment

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 year ended and as at 31 December 2020.

The overlays involved significant level of judgement and reflect the management’s views of possible severities of the
pandemic and paths of recovery in the forward looking assessment for ECL estimation purposes.
The adjusted downside scenario assumes a continuous restrictive economic environment due to COVID-19, the impact
of these adjustments were estimated at portfolio level and the Bank for loans, advances and financing as at 31 December
2020 amounted to RM1,172,904,000. Total additional management overlays for ECL provided by the Group and the Bank
as at 31 December 2020 are RM150,431,032 (2019: Nil).
ECL (inclusive of overlays) analysed by geographical area are as follows:

Group and Bank
Outstanding Modelled Management Total
Balance ECL Overlay ECL
2020 2020 2020 2020
RM’000 RM’000 RM’000 RM’000

Malaysia 739,583 93,134 114,215 207,349
East Asia 170,912 6,158 7,152 13,310
South Asia 22,705 7,134 - 7,134
Middle East 192,546 43,874 26,102 69,976
Africa 45,305 916 2,500 3,416
Oceania 1,853 287 462 749
1,172,904 151,503 150,431 301,934

(xi) ECL (inclusive of overlays) analysed by industry are as follows:
Group and Bank
Outstanding ECL Management
Balance Stage 1 Overlay
2020 2020 2020 2020
RM’000 RM’000 RM’000 RM’000

Primary agriculture 13,132 1,227 91 1,318
Manufacturing 600,265 95,943 80,159 176,102
Transport, storage and communication 192,546 43,874 26,102 69,976
Construction 205,164 6,999 9,542 16,541
Wholesale and retail trade, and restaurants and hotels 87,305 2,651 6,874 9,525
Others 74,492 809 27,663 28,472
1,172,904 151,503 150,431 301,934