Addressing the mass SME market
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?
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.