Canada’s ex­port credit agency fa­cil­i­tates more than US$1.9b busi­nesses be­tween 2012 and last year

New Straits Times - - Business - LOKMAN MAN­SOR KUALA LUMPUR bt@me­di­aprima.com.my

EX­PORT De­vel­op­ment Canada (EDC) hopes to facil­itate up to US$4 bil­lion (RM17.6 bil­lion) worth of busi­nesses be­tween Malaysian and Cana­dian com­pa­nies in the next five years.

The Cana­dian ex­port credit agency, which re­cently set up its first stand­alone fi­nanc­ing hub in the re­gion, has fa­cil­i­tated more than US$1.9 bil­lion in busi­ness be­tween Malaysian and Cana­dian com­pa­nies in the past five years through the en­tire range of its fi­nan­cial solutions.

“EDC has been ac­tively pur­su­ing busi­ness in Malaysia,” its re­gional vice-pres­i­dent for Asia, Wil­liam Brown, told NST Busi­ness.

“We pro­vide large-scale fi­nanc­ing to those who have or are con­sid­er­ing busi­nesses with Cana­dian com­pa­nies or their af­fil­i­ates in the re­gion.”

In an email in­ter­view, he said one of EDC’s po­ten­tial growth ar­eas was the en­ergy sec­tor.

“Cana­dian clean­tech com­pa­nies have the ex­per­tise needed to con­trib­ute to Malaysia’s econ­omy, so EDC sees much op­por­tu­nity for trade be­tween Canada and Malaysia in this sec­tor.

“Other key pri­or­ity sec­tors for EDC in Malaysia in­clude aero­space, con­struc­tion and in­fra­struc­ture, and oil and gas,” said Brown.

EDC, which is wholly owned by the Cana­dian gov­ern­ment, of­fers prod­ucts and ser­vices that in­clude trade credit in­sur­ance, ex­port fi­nanc­ing for Cana­dian com­pa­nies and their for­eign cus­tomers, bond­ing solutions, in­ter­na­tional mar­ket ex­per­tise, and in­for­ma­tion on op­por­tu­ni­ties in in­ter­na­tional mar­kets.

Brown said as the pro­tec­tion­ist sen­ti­ment grows in the United States and other parts of the world, Malaysia need to di­ver­sify its ex­port part­ners and en­cour­age the growth of its ex­port-ori­ented in­dus­tries by in­creas­ing com­pe­ti­tion, ef­fi­ciency and pro­duc­tiv­ity.

“EDC can act as a long-term growth part­ner and help com­pa­nies in Malaysia re­duce costs and in­crease ef­fi­ciency and in­no­va­tion by in­tro­duc­ing them to Cana­dian com­pa­nies with the ex­act ca­pa­bil­i­ties they need or want,” he added.

With its new branch in Sin­ga­pore, EDC can now bring its global-scale fi­nanc­ing busi­ness closer to projects and com­pa­nies in Asean and Malaysia by oper­at­ing in real Asia time, thus elim­i­nat­ing the pre­vi­ous 12-hour de­lay to con­nect back to the fi­nanc­ing teams in Canada.

“EDC’s fi­nanc­ing is now of­fered more quickly and ef­fec­tively, which would sig­nif­i­cantly ben­e­fit Cana­dian com­pa­nies oper­at­ing in Malaysia, as well as Malaysian com­pa­nies seek­ing fi­nanc­ing,” said Brown.

He said the EDC would be look­ing to struc­ture trans­ac­tions in the local cur­rency, us­ing local fi­nan­cial in­sti­tu­tions to bet­ter meet the needs of its Malaysian cus­tomers.

“The part­ner­ship be­tween EDC and fi­nan­cial in­sti­tu­tions in Malaysia can de­liver even more ca­pac­i­ties to the local bank­ing in­dus­try and growth cap­i­tal to the cor­po­rates in Malaysia,” he added Brown.

Wil­liam Brown

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