EDC TARGETS US$4 B DEALS IN 5 YEARS
Canada’s export credit agency facilitates more than US$1.9b businesses between 2012 and last year
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.