The trend of investing in the emerging market economies has been gaining momentum among Malaysian entrepreneurs. As an investor, one is capable of evaluating the commercial aspects of doing business overseas. Nevertheless, there may be hesitation to commit capital to a project, especially if there is doubt in the long term political stability in the host country. Hence, in order to overcome this hesitation and allay fears, EXIM Bank’s Overseas Investment Takaful (OIT) can help to protect investment and consequently, the business’ profits.

Detailed information can be obtained from the Product Disclosure Sheet

 
Overseas Investment Takaful
 
Shariah Contracts
The Shariah contract applicable to Specific Takaful is Wakalah-Mudarabah
Risk Covered
EXIM Bank’s Overseas Investment Takaful programme covers up to 100% of your losses from the following risks:
 
Transfer Restriction
Protect losses arising from the inability to convert for instance dividends, profits, financing repayments received in local currency due to:
  1. Excessive delays
  2. Changes in law or regulation
  3. Lack of foreign exchange
Expropriation
Protect losses due to actions depriving an investor of ownership or control due to:
  1. Direct expropriation
  2. Creeping expropriation
War & Civil Disturbance
Protect losses stemming from physical damage to tangible assets or substantial interruption of business due to:
  1. War
  2. Revolution
Breach of Contract
Protect a Concession Holder against losses arising from repudiation or breach of contract by host government authority. Cover can be considered on case-by-case basis.
 
Cover is extended to Shariah-compliant purposes.
Percentage of Cover
Up to 100% of the insured amount or losses suffered, whichever is lower, due to political risks
Contribution Rate
Contribution rate is determined based on:
  1. Country Grading
  2. Length of pre-checking risk
  3. Length of credit risk
  4. Eligible Investment
  5. OIT can cover the following types of investment;
  6. Equity
  7. Shareholder Financing
  8. Shareholder Guarantees
  9. Commercial Bank Financing
  10. Moveable Assets
Eligible Investment
OIT can cover the following types of investment;
  1. Equity
  2. Shareholder Financing
  3. Shareholder Guarantees
  4. Commercial Bank Financing
  5. Moveable Assets
Eligible Participant
Companies incorporated in and have their principal business in Malaysia, including Financial Institutions that finance Overseas Project/Investment.
Fee and Charges
  1. Processing Fee of one percent (1%)* on the insured amount subject to a minimum of RM1,000 and maximum RM20,000 payable upon accepting the Letter of Offer (“LO”)
  2. Should the insured amount be in foreign currency, a Processing Fee would be applied accordingly in the foreign currency, with the minimum payment in foreign currency be equivalent to RM1,000 and a maximum of RM20,000
(*) subject to Terms and Conditions. Not applicable to SMEs.
Certificate Period
  1. Up to 15 years
  2. Investor has right to terminate after 3rd year. In case of default, the Investor has to pay 50% of the total three years contribution
  3. Coverage cannot be cancelled unless in the event of non-payment of contribution
Commencement of Cover
Once the contribution and fees are fully paid, which is on a one-off basis, subsequent to the execution of the LO
Assignment of Certificate
Certificate can be assigned as security
Claim waiting period
Causes of Loss & Date of Ascertainment of Loss
  1. Transfer Restriction
    Up to six (6) months after attempt to convert or transfer local currency
  2. Expropriation
    Up to four (4) months after the expiry of 12 months from the onset of the expropriation action
  3. War and Civil Disturbance
    Up to four (4) months upon proof of damage to physical assets or up to four (4) months from the expiry of 12 months after the project enterprise has been put out of operation
  4. Breach of Contract
    At least two (2) years must elapse from the initiation of a legal proceeding by you or a final decision by the judicial or arbitral forum, as the case may be
Tax Relief
In respect of OIT contribution paid, participant is eligible for double deduction tax relief under Section 33 of the Income Tax 1967. Tax Certificate will be issued within one (1) month of the participant’s financial year-end.