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Section 03 Connecting Prospects
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Locally incorporated corporations and SMEs, as well as foreign exports into international markets through working capital
companies and selected foreign governments, make up the financing under the supplier credit or financing facilities.
clientele. In its export promotion efforts, the Bank collaborates Such facilities offer pre-shipment financing as working
with the Government and its agencies, including MITI, Malaysia capital for the production of goods prior to shipment
External Trade Development Corporation (MATRADE), Malaysian and post-shipment financing as working capital after the
Investment Development Authority (MIDA), Small and Medium shipment of goods, pending the receipt of proceeds for the
Enterprise Corporation Malaysia (SMECorp) and Construction exported goods.
Industry Development Board Malaysia (CIDB Malaysia).
Import financing facilities assist Malaysian companies
The facilities offered by the Bank fall into two principal categories: with the import of strategic goods and services, which
banking facilities and credit takaful facilities. are unavailable in Malaysia, to promote the socioeconomic
development of Malaysia.
BANKING FACILITIES PERFORMANCE IN 2020
It also makes available competitively priced short-term
EXIM Bank has established a wide range of financing facilities trade finance facilities to direct and indirect exporters to
for the financial needs of its borrowers. Among the banking promote the export of manufactured products, agricultural
facilities offered by the Bank are as follows: products and primary commodities under the Export Credit
Refinancing (ECR) Scheme, which is categorised under pre-
Cross-border term financing and post-shipment facilities. Pre-shipment ECR is an advance
to facilitate the production of goods prior to shipment and
Malaysian contractors or investors can approach the to encourage the development of a network of economic
Bank for facilities such as overseas project, contract inter-dependence between exporters and Malaysian
and investment financing when these borrowers suppliers in industrial development. Post-shipment
undertake overseas manufacturing, infrastructure and ECR is an advance to exporters to finance the export of
other developmental projects. Financing to Malaysian goods after shipment, pending the receipt of proceeds for
companies in bidding for overseas jobs and contracts is the exported goods.
also provided. The financing is extended directly to a foreign
government or foreign buyer to facilitate the import of Furthermore, the Bank provides short-term trust receipt
Malaysian goods and services. financing to importers to bridge their working capital
requirements through the extension of credit under
Besides that, the Bank extends export of services facilities documentary credit transactions until the receipt of
to facilitate Malaysian companies in exporting their sales proceeds. As the imported goods are unavailable
professional services overseas, which are typically in the in the country of import, such financing has the ability to
form of consultancy in areas like information technology, enhance the competitiveness of the products imported.
engineering, architecture and design, and other technical The Bank also offers financing to Malaysian manufacturers
services. that are involved in or support export-related industries

As at 31 December 2020, the Bank’s total loans in selected vendor programmes developed by the
outstanding relating to term financing (including both Government or its agencies, by financing the working
conventional and Islamic banking facilities) amounted capital needs of such manufacturers for the post delivery
to RM4.48 billion. of goods or services supplied to their customers.
Trade finance As at 31 December 2020, the Bank’s total loans
outstanding relating to trade finance (including both
Various facilities in support of cross-border trade are conventional and Islamic facilities) amounted to
made available. Malaysian manufacturers, exporters and RM1.25 billion.
suppliers of Malaysian goods can also take advantage of
the trade finance facilities offered by the Bank to boost their