Overseas Investment Takaful
The trend of investing in the emerging market economies has been gaining momentum among Malaysian entrepre- neurs. As an investor, you are capable of evaluating the commercial aspects of doing business overseas. Nevertheless, you may be hesitant to commit your capital to a project especially if you perceive the long term political stability in the host country to be uncertain. Hence, in order to overcome your hesitation and allay your fears, EXIM Bank’s Overseas Investment Takaful (OIT) can help to protect your investment and consequently your profits.
Detailed information can be referred to Product Disclosure Sheet
Overseas Investment Takaful
EXIM Bank’s Overseas Investment Takaful programme covers up to 100% of your losses from the following risks:Transfer Restriction
Protect your losses arising from the inability to convert for instance dividends, profits, financing repayments received in local currency due to:
- Excessive delays
- Changes in law or regulation
- Lack of foreign exchange
Protect your losses due to actions depriving an investor of ownership or control due to:
War & Civil Disturbance
- Direct expropriation
- Creeping expropriation
Protect your losses stemming from physical damage to tangible assets or substantial interruption of business due to:
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.
Up to 100% of the insured amount or losses suffered, whichever is lower, due to political risks.
Contribution rate is determined based on:
- Country Grading
- Length of pre-checking risk
- Length of credit risk
OIT can cover the following types of investment;
- Shareholder Financing
- Shareholder Guarantees
- Commercial Bank Financing
- Moveable Assets
Companies incorporated in and have their principal business in Malaysia including Financial Institution which finances Overseas Project/Investment.
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”)
Should the insured amount be in foreign currency, the 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.
- Up to 15 years
- Investor has right to terminate after 3rd year. In case of default, the Investor has to pay 50% of the total three years contribution
- Coverage cannot be cancelled unless in the event of non-payment of contribution
Once the contribution and fees are fully paid which is on one-off basis subsequent to execution of Letter of Offer.
Certificate can be assigned as security.
Causes of Loss & Date of Ascertainment of Loss
- Transfer Restriction
Up to six (6) months after attempt to convert or transfer local currency.
Up to four (4) months after the expiry of 12 months from the onset of the expropriation action.
- War and Civil Disturbance
Up to four (4) months upon proof of damage to physical assets or up to 4 months from the expiry 12 months after the project enterprise has been put out of operation.
- 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.
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 financial year end.