Ad­dress­ing the mass SME mar­ket

The Star Malaysia - Star2 - - SOBA 2013 -

Ex­port-Im­port Bank of malaysia Bhd (Exim Bank) is keen on ad­dress­ing the mass SmE mar­ket to in­crease the aware­ness of the SmE com­mu­nity in re­la­tion to its role.

pres­i­dent and chief ex­ec­u­tive of­fi­cer Datuk Adis­sadikin Ali shares his views on the bank’s plans for the SmEs.

StarBiz: How is the im­port/ ex­port mar­ket in­volv­ing SMEs in 2013?

adiS­Sadikin:

this can be zoomed into a few sec­tors, namely oil and gas, manufacturing and an­cil­lary palm oil-re­lated ac­tiv­i­ties.

With fur­ther fa­cil­i­ta­tion by mul­ti­me­dia Devel­op­ment Corp (mDeC), malaysian tech­nol­ogy Devel­op­ment Corp (mtDC) and malaysian Biotech­nol­ogy Corp, we are also look­ing at SmEs with ex­port-ready ca­pa­bil­i­ties in the ad­vanced tech­nol­ogy sec­tors.

With the on­go­ing drive to push malaysia into be­com­ing a high- in­come na­tion by 2020, we shall see more SmEs in the fore­front of in­ter­na­tional busi­nesses of malaysia.

Can you tell us what are the new prod­ucts/fa­cil­i­ties launched in 2013 by Exim Bank?

the bank con­tin­ues to lever­age on ex­ist­ing fa­cil­i­ties made avail­able with the in­ten­tion to fine tune its at­trac­tive­ness to our po­ten­tial bor­row­ers.

Nev­er­the­less, as the bank is cur­rently fo­cus­ing on grow­ing our Is­lamic busi­ness, we have been suc­cess­ful at map­ping all our con­ven­tional bank­ing prod­ucts into Is­lamic of­fer­ings.

Not only look­ing at bank­ing fa­cil­i­ties, we have also in­tro­duced Is­lamic trade Credit In­surance in our effort to of­fer al­ter­na­tives to our cus­tomers.

What are some of the is­sues in­volv­ing SMEs when they seek fi­nanc­ing fa­cil­i­ties for ex­port?

For SmEs, the main is­sue would be the per­for­mance risk as­sess­ment by any fi­nan­cial in­sti­tu­tions.

Next, the busi­ness model and the sus­tain­abil­ity of the busi­ness ap­proach adopted would be as­sessed.

oth­ers would in­clude the ad­e­quacy of as­sets to back their ap­pli­ca­tions.

Specif­i­cally for ex­ports, SmEs should con­sider hav­ing trade in­surance cover for their trans­ac­tions so as to fur­ther boost their chances of get­ting fi­nanc­ing.

For new play­ers in in­ter­na­tional trans­ac­tions, trade credit in­surance should be seen as a risk mit­i­ga­tion tool that will help the SmEs in un­der­stand­ing their new mar­ket risks.

Mov­ing for­ward, what are some of the plans that Exim Bank has for SMEs?

We un­der­stand the chal­lenges for SmEs where work­ing cap­i­tal is pre­dom­i­nantly the is­sue in at­tend­ing to any con­tracts in hand.

there­fore, we have in place two new ven­dor devel­op­ment fi­nanc­ing pro­grammes.

this fa­cil­ity is aimed at ad­dress­ing the work­ing cap­i­tal needs of the SmEs with con­tracts in hand with few ma­jor ex­port ori­ented cor­po­ra­tions.

We want to con­tinue be­ing closer to the busi­ness com­mu­nity, as with close prox­im­ity there can be more busi­ness op­por­tu­ni­ties and the bank will be able to dis­charge its man­date in fa­cil­i­tat­ing malaysians in their cross-bor­der ven­tures more ef­fec­tively.

Adis­sadikin de­liv­er­ing his speech dur­ing SOBA 2013 at The Royale Chu­lan Ho­tel.

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