Shanghai, China – 15 November 2024 – The Export-Import Bank of Malaysia Berhad (EXIM Bank Malaysia), and the Export-Import Bank of China (China Exim Bank) celebrated a milestone today by signing of a Framework Agreement (Agreement). This significant event marks the continued relationship both Banks share with each other and also the 50th anniversary of diplomatic relations between Malaysia and China.

The signing underscores the enduring partnership and commitment to strengthening economic and trade ties between the two nations.

Highlighting the importance of this bilateral relationship, EXIM Bank Malaysia’s Chairman Dato’ Charon Mokhzani said: “This Agreement represents a significant step in our continued collaboration with China Exim Bank. This cooperation will open new avenues for trade and investment, benefiting both our nations.”

The Agreement aims at strengthening and enhancing trade and economic cooperation between Malaysia and China. Both EXIM Bank Malaysia and China EXIM Bank play crucial roles in their respective national economies, fostering development and facilitating international trade.

As of September 2024, total Malaysia-China trade for the year stood at RM355.15 billion (USD76.72 bn) and it was at RM450.72 bn (USD99 bn) last year. Among the key products that support Malaysia exports to China, include Electrical & Electronic, Chemicals, Aircraft Equipment & Parts, and Pharmaceuticals. Total year to date export value of these products were RM61.81 bn (USD13.86 bn). Recognising the necessity for a cooperative framework, the Agreement promotes communication, discussion and collaboration between the Banks.

Under the Agreement, China EXIM Bank will grant EXIM Bank Malaysia a line of credit of Renminbi facilities to be offered to eligible Malaysian companies pursuing business and trade activities in China. This credit line aims to finance the purchase of Chinese mechanical and electronic products, complete sets of equipment, high and new-tech products and services, and support cooperation in natural resources and energy exploration, as well as construction contracting projects between Chinese and Malaysian enterprises.

It also will be applied to projects in fields such as energy trading, raw materials trading, mechanical and electronic products trading, among others, to facilitate trade growth between China and Malaysia, third-party market cooperation projects, and other mutually agreed projects.

The Agreement also emphasises cooperation in other areas, including third-party market cooperation projects in Belt and Road Initiative countries, trade transactions between China and Malaysia, particularly in mechanical and electronic products, complete sets of equipment, high and new-tech products, energy, and raw materials.

Additionally, it focuses on energy and infrastructure projects, including clean energy financing and development, contracting projects involving Chinese or Malaysian enterprises, and green and decarbonised projects developed by Chinese and Malaysian enterprises.

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About EXIM Bank of Malaysia Berhad

The Export-Import Bank of Malaysia Berhad (EXIM Bank) was incorporated on 29 August 1995 and is wholly-owned by the Government of Malaysia. The Bank has assisted a diverse range of Malaysian business in various sectors in their global ventures.  EXIM Bank takes pride in meeting its mandated role of stimulating and enhancing the competitiveness of Malaysian industries for exports and investments globally via the provisioning of internationally and domestically competitive banking and insurance products and advisory services. The Bank also offers Shariah-compliant financing and Takaful instruments. For more information, visit www.exim.com.my.

About The Export-Import Bank Of China

The Export-Import Bank of China is a state-funded and state-owned policy bank with the status of an independent legal entity. It is a bank directly under the leadership of the State Council and dedicated to supporting China’s foreign trade, investment and international economic cooperation. With the Chinese government’s credit support, the Bank plays a crucial role in promoting steady economic growth and structural adjustment, supporting foreign trade, and implementing the “going global” strategy. It is committed to reinforcing financial support to key sectors and weak links in the Chinese economy to ensure sustainable and healthy economic and social development. In China, the Bank has 32 branches on the mainland and one representative office in Hong Kong. Overseas, it has the Paris Branch, Representative Office for Southern and Eastern Africa, St. Petersburg Representative Office, Representative Office for Northern and Western Africa.