As the COVID-19 pandemic brought cross-border ventures to a grinding halt in 2020, Export-Import Bank of Malaysia Berhad (EXIM Bank) quickly realigned priorities, focusing on bolstering support for businesses and driving the resilience of the nation’s economy. Efforts were channelled towards restructuring loan repayments for our customers, facilitating moratoriums, and working with the Ministry of Finance to assist the business community through this difficult and challenging period. Numerous fiscal and non-fiscal stimulus measures were introduced by the Government during the year under the Budget 2021 theme of “Resilient As One, Together We Triumph”. Living up this theme, EXIM Bank spearheaded the National Supply Chain Finance Platform (JanaNiaga), which is focused on assisting the financial position of Small and Medium Enterprises (SMEs) that supply to the Government or Government-Linked Companies (GLCs). By providing SMEs with cash flow solutions and access to affordable loans, JanaNiaga will enable these businesses to survive and ready to thrive once opportunities emerge.
PROVIDING A LIFELINE FOR BUSINESS CONTINUITY
The disruption on global socioeconomic systems rendered 2020 an infamous year for business. The pandemic outbreak curtailed international trade as borders were closed and economic activities restricted to curb the spread of the COVID-19 virus. The unprecedented situation led to a sharp global GDP contraction comparable to the 1930’s Great Depression.
Malaysia’s situation was no different with our economy contracting by a record 5.6% in 2020. The Movement Control Order (MCO) in March 2020, followed by renewed restrictions between October and December last year contributed largely to the dismal performance. The three biggest decliners were the construction, mining and services sectors – contracting by -19.4%, -10% and -5.5% respectively. Numerous fiscal and non-fiscal stimulus measures were introduced by the Government to help businesses survive. These included the PRIHATIN package of RM250 billion in March 2020, the PRIHATIN SME+ package of RM10 billion in April 2020, the PENJANA package of RM35 billion in June 2020, as well as the KITA PRIHATIN package of RM10 billion. On 6 November, a National Supply Chain Finance Platform, dubbed ‘JanaNiaga’, was announced for small and medium enterprises (SMEs) that supply to the government or government-linked companies (GLCs).
Export-Import Bank of Malaysia (EXIM Bank) was mandated to spearhead the JanaNiaga platform, and this we are steering ably towards assisting SMEs with cash flow issues and facilitating their loans from financial institutions. Through JanaNiaga, the Bank aims to play its role in mitigating the economic impact of the pandemic by helping SMEs build resilience, provide employment and sustain ongoing operations through this challenging period.
Through a challenging 2020, EXIM Bank strived to seek new ways to give back to society by contributing to the underprivileged and positively impacting their lives. Though movement restrictions hindered the regular hosting of events and gatherings, the Bank was agile in adapting to new norms as we steadfastly supported the less fortunate and drove resilience for the disadvantaged. The year saw the Bank reaching out to continue its support for chosen causes to ensure that positive outcomes were nurtured from improving the livelihoods of the less fortunate to conserving wildlife and benefitting our own employees. Every CSR programme is strategically planned with proper resources and objectives to ensure sustainable and impactful outcomes.