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40 EXIM BANK MALAYSIA ANNUAL REPORT 2022

MANAGEMENT DISCUSSION

AND ANALYSIS

MOF (Inc.), as the shareholder of the special right redeemable preference
OVERVIEW OF EXIM’S BUSINESS share, has the right to appoint no more than four members out of the
OPERATIONS maximum 12 members to the Bank’s Board of Directors (the Board),
including the appointment of the Chairman. Any appointment to the
The Bank’s legal and commercial name
Board and the appointment of the Chief Executive Officer of the Bank is
is Export-Import Bank of Malaysia
subject to the approval by MOF (Inc.). The Bank’s Board currently comprises
Berhad, having its registered office
the Chairman (who is also an independent non-executive director),
at EXIM Bank, Jalan Sultan Ismail,
four other independent non-executive directors, and two non-independent
50250 Kuala Lumpur, Malaysia.
non-executive directors (one being a representative from MOF (Inc.) and
The Bank was initially established
the other being a representative from MITI).
as the “International Division” of
Bank Industri dan Teknologi Malaysia
BuSINESS OF THE BANK
Berhad (BITMB) and was subsequently
incorporated on 29 August 1995 as The Bank is the only Development Financial Institution (DFI) in Malaysia
a government-owned Development dedicated in promoting the development of cross-border ventures through
Financial Institution (DFI), under the the provision of financing and insurance/takaful facilities to Malaysian entities
Companies Act, 1965 of Malaysia, conducting their business overseas. As an agency owned by MOF (Inc.)
through it becoming a subsidiary of and now under the purview of MITI, the Bank’s mandated role is to provide
BITMB. As a DFI, the Bank is governed credit facilities to finance and support export and import of capital goods,
by the Development Financial services, infrastructure projects, shipping and value-added manufacturing,
Institutions Act (DFIA). It was then by facilitating the entry of Malaysian companies into new markets abroad with
spun off as an independent institution an emphasis on non-traditional markets, where there is limited participation
in 2005 to function as a standalone DFI from commercial banks. The Bank also provides export credit takaful services,
focused on export credit activities. overseas investments and guarantee facilities.
On 30 December 2005, the Bank
merged with Malaysia Export Credit The Bank’s clientele consists of locally incorporated corporations and SMEs,
Insurance Berhad, retaining the name as well as foreign companies and selected foreign governments.
Export-Import Bank of Malaysia The Bank, in its export promotion efforts, collaborates with the Government
Berhad. and its agencies such as Ministry of Investment, Trade and Industry (MITI),
Malaysia External Trade Development Corporation (MATRADE), Malaysian
As at 31 December 2022, the Bank had Investment Development Authority (MIDA), Small and Medium Enterprise
an issued and paid-up share capital Corporation Malaysia (SMECorp), Construction Industry Development Board
of RM 2,958,665,284 comprising the Malaysia (CIDB Malaysia), Halal Development Corporation (HDC) and TERAJU.
following:
The facilities offered by the Bank fall into two principal categories:
2,708,665,282 banking facilities and credit takaful facilities.
ordinary shares owned by
Minister of Finance Incorporated BANKINg FACILITIES
(MOF (Inc.))
EXIM Bank has established a wide range of Islamic and conventional financing
1 ordinary share facilities to cater for the financial needs of its borrowers. Among the banking
owned by Federal Lands facilities offered by the Bank are as follows:
Commissioner of Malaysia
Cross-border term financing
1 special right redeemable
preference share owned by The Bank provides overseas project, contract and investment financing facilities
MOF (Inc.)
to Malaysian contractors or investors to undertake projects overseas such as
250,000,000 manufacturing, infrastructure and other developmental projects and financing
Redeemable Cumulative and to Malaysian companies engaging in the supply of Malaysian goods and services
Convertible Preference Share and making investments overseas. Buyer credit facilities are offered by the Bank
(RCCPS) owned by MOF to provide opportunities to Malaysian exporters and contractors in bidding for
(Incorporated) overseas jobs and contracts. The financing is extended directly to a foreign
government or foreign buyer to facilitate the import of Malaysian goods and
services.