Malaysian contractors and manufacturers that undertake contracts for export of capital goods, turnkey projects, construction works, or rendering of services abroad should not be overly concerned on the risk of non-payment by their buyer or contract awarder. Our Specific Takaful (ST) assures your future payments for export or domestic contracts for supply of capital goods or services, either from your buyers or contract awarders or from EXIM Bank by way of Takaful claims.

A certificate of coverage for Malaysian contractors that undertake projects against payment default by contract awarder or issuing banks (for standby Letter of Credit).

Detailed information can be obtained from the Product Disclosure Sheet

 
Shariah Contracts
 
Export / Domestic
The Shariah contract applicable to Specific Takaful is Wakalah-Mudarabah

 

Risk Covered
 
Export
Commercial Risks
  1. Buyer insolvency
  2. Payment default by buyer within six (6) months of goods delivered and accepted
Economic Risks
  1. Blockage or delay in payment transfer
  2. Imposition of import restrictions
  3. Cancellation of valid import license
Political Risks
  1. Occurrence of war between buyer’s country and Malaysia
  2. Occurrence of war, hostilities, revolution or other similar civil disturbances in the buyer’s country.
Unforeseeable Events
  1. Any other causes of loss occurring outside Malaysia, which are beyond control of either the exporter or the buyer.
Domestic
Commercial Risks
  1. Buyer insolvency
  2. Payment default by buyer within six (6) months of goods delivered and accepted
Economic Risks
  1. Delay in transfer of payments due to currency inconvertibility.

 

Types of Export/Contract
 
Export
  1. One-off contract but may be repetitive in nature project or revolving during the contract period.
  2. Minimum local content of 30% of the contract value
Domestic
One-off contract that may have repetitive shipments and revolving in nature, subject to the coverage period being within the contract validity and the loss amount to be within the approved limit or authority, whichever is earlier.

 

Percentage of Cover
 
Export / Domestic
Up to 90% for commercial and non-commercial risks

 

Payment Terms
 
Export / Domestic
All shipments made under contracts concluded on payment terms of Irrevocable Letter of Credit (ILC), Documents Against Payment (DP), Documents Against Acceptance (DA) and Open Account (OA) are acceptable.

 

Contribution Rate
 
Export / Domestic
Contribution rate primarily depends on EXIM Bank’s grading of the market with which the business is done and the terms of payment. In general, the premium is dependent on market risk and credit terms.

 

Fee and Charges
 
Export / Domestic
RM1, 000 per application.
(Not applicable to SMEs)

 

Commencement of Cover
 
Export / Domestic
The protection/cover starts either from the date of contract or the date of shipment.

 

Claim Payment
 
Claim Waiting Period
Buyer’s Insolvency
Export / Domestic
Immediately
 
Default in Payment
Export / Domestic
Six (6) months after due date of payment
 
Non-Acceptance of goods
Export
One (1) month after goods are resold
 
Domestic
N/A
 
Transfer Delay
Export / Domestic
Four (4) months after deposited payment in selected currency
 
Others
Export / Domestic
Four (4) months after date of occurrence

 

Tax Relief
 
Export / Domestic
In respect to ST 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.