EXIM BANK SEMINAR AIMS TO BOOST TRADE FINANCE IN OIC MARKETS

EXIM and ITFC introduced a scheme to help Malaysian exporters to venture into OIC countries.

KUALA LUMPUR, Thursday (16 July 2009]: Export-Import Bank of Malaysia Berhad (EXIM Bank) together with International Islamic Trade Financing Corporation (ITFC), a subsidiary of Islamic Development Bank (IDB) today conducted a seminar to introduce to Malaysian exporters various financing schemes and options to promote Malaysia’s products to OIC markets. This seminar is supported by Malaysia External Trade Development Corporate (MATRADE).

The seminar attracted 500 participants from various Malaysian business communities, Officials from the Embassies and Consulates of OIC member countries as well as local financial institutions. It was officiated by Y.Bhg. Dato’ Zamani Abdul Ghani, Deputy Governor of Bank Negara Malaysia.

Among the speakers at the seminar are representatives from ITFC, the Islamic Corporation for the Insurance of Investment and Export Credit (ICIEC) and MATRADE.

“Currently, the Malaysian trade with OIC member countries accounts for only 10% of the total trade. As Malaysia aspires to become the Islamic Financial and halal hub in the region, trade expansion with the OIC member countries will certainly provide greater opportunities for the Malaysian traders”, said Y.Bhg. Dato’ Zamani.

In conjunction with the seminar, business networking sessions were also organized to enable participants to discuss business and joint investment opportunities as well as forging mutually beneficial business collaboration and linkages.
In line with the Government’s plan to promote cross-border trade and investments between OIC member countries, EXIM Bank believes that the time has come for Malaysian private sector to expand its business globally in particular to OIC member countries.

Mohd Fauzi Rahmat, Managing Director/Chief Executive Officer, EXIM Bank said, “EXIM Bank has introduced several Islamic banking products during the 1st quarter of this year in support of the plan and to meet the growing demand for such products especially in the OIC markets. The Bank also plans to introduce Islamic insurance (takaful) products in 2010 to meet the potential demand in that sector.

EXIM Bank also stressed the importance of playing an active 'partnership' role in its customers’ ventures by providing a variety of products and services - all of which would assist Malaysian business exporters in sourcing the most cost-effective funding structures for the development of their business.

While the Bank recognizes that 2009 would be a more challenging year due to the continued global economic uncertainties, the Bank would continue to provide support and assistance to its existing and potential customers and partners when the tide turns for the better.

“Recognizing the fact that we could not sit still while waiting for the global economy to recover, the Bank would continue to forge strategic alliances with domestic and multi-lateral agencies to facilitate Malaysian traders and investors so that we can together play an effective role to improve the national economy. IDB-Co Financing scheme for example, is testimony to our seriousness in this effort as we are working closely with a reputable international organization with years of proven success in many parts of the Muslim world - the Islamic Development Bank (IDB) based in Jeddah, Kingdom of Saudi Arabia for the benefit of the ummah”, added Fauzi.

Today, the Bank is supporting the financing needs of Malaysian companies and investors with operations in 81 countries spread across five continents. With the deep understanding, linkages with global export credit agencies and vast exposures and experience in the global markets, EXIM Bank is naturally the first choice for Malaysian exporters and investors going abroad.

IDB-Co Financing is a financing scheme between EXIM Bank and ITFC, in which the underlying feature is to ensure “secured payment” via Irrevocable Commitment to Reimburse (ICR) from ITFC to Malaysian exporters. The underlying feature would address the commercial banks and exporters’ fear of not getting payment from the banks of the OIC member countries. In terms of risk exposure, EXIM Bank and ITFC would be sharing the risk on equal basis in the event of non-payment by the importer/borrower.

Malaysian exporters are encouraged to explore and exploit this financing scheme to finance their exports to OIC member countries.