KUALA LUMPUR: Export-Import Bank of Malaysia Bhd (Exim Bank) has targeted to disburse loans worth RM1bil by year-end and offer new initiatives in line with its capacity building programme.
Managing director and chief executive officer Adissadikin Ali (pic) said the financing was for small and medium enterprises (SMEs) and corporates who were looking for export markets overseas.
Over the last five years, the bank had provided total financing worth RM3bil to companies, of which 80% were SMEs and the remaining corporates, according to Adissadikin.
Adissadikin Ali
During this period, Exim Bank had also offered financing to more than 500 borrowers and close to 2,000 trade credit insurance policies were issued in facilitating cross-border ventures. Trade credit insurance is to prevent losses that may be incurred by local exporters in the event foreign buyers default payments.
“With the bank's assistance, Malaysian companies have been able to expand their businesses to 100 countries globally. Our role is to complement commercial banks and plug the gap in terms of financing when companies fail to secure from the former,'' he said in an interview.
According to Adissadikin, the RM1bil target for financing would be achieved by creating awareness on the bank's available facilities as well as via targeted marketing, especially to corporates. Exim Bank is the official presenter of the upcoming The Star Outstanding Business Awards 2011 (SOBA 2011).
He said being the presenter for the event was relevant to the bank as it provided financing for SMEs venturing abroad and at the same time, the event would generate awareness in areas such alternative financing and trade credit insurance coverage.
For its capacity building programme, Exim Bank plans to expand the scope of services offered to include import financing and advisory services.
Adissadikin said for import financing, it would be confined to two areas, namely import of semi-finished or raw materials which would add value to exports and import of strategic goods for consumption.
On advisory services, Exim Bank has set its sights on providing full-fledged global consultancy services in the next two years where it would be able to furnish information and add value to facilitate imports and exports.
At present, the bank provides funding needs to customers who have business operations in 100 countries, of which about 60% are in Asia, 20% in the Middle East and North Africa region and the balance elsewhere in the world.
Currently, the bulk or about 60% of funds given are to construction or infrastructure-related projects.
The bank is also collaborating with some regional export-import banks and other regional development banks in a bid to support local exporters.
For example, Adissadikin said that by working closely with the Asian Development Bank whose aim is to eradicate poverty, Malaysian exporters or companies could lend their expertise in various areas to address this issue and hence also benefit from the rendering of their services and expertise.
He said the bank had also recently tied up with the Islamic Development Bank (IDB) to launch IDB-Exim co-financing to spur trade between Organisation of the Islamic Conference member countries and Malaysian businesses.
