Exim Bank to up cross-border exposure

KUALA LUMPUR: The Export-Import Bank of Malaysia Bhd (Exim Bank) expects to increase cross-border exposure to the African region from its current three per cent to five per cent over the next five years.

Chief operating officer Wan Zalizan Wan Jusoh said the bank was confident of expanding that composition with the opening of some new business opportunities particularly in construction, plantation, infrastructure, renewal energy and tourism.

"Malaysian companies have a presence in several African countries and we (Exim Bank) have been receiving a lot of interest directly," he told reporters after a networking session in conjunction with the visit of Togo Minister of Foreign Affairs & Cooperation Robert Dussey.

The bank's cross border exposure to the African region amounted to RM265 million as at December 2013.

"This exposure is spread out to the various countries like Uganda, Tanzania and Sudan. At this juncture, Exim Bank has no business cooperation with the Republic of Togo," he said.

"We foresee that there is still room for further expansion in terms of trade. We will continue to explore the five potential areas for Malaysian companies to invest in," he said.

Last year, total trade between the Republic of Togo and Malaysia stood at US$1.5 billion.

Wan Zalizan said collaboration between the two countries could be in many forms.

"For instance, investors from the Republic of Togo could use Malaysia as a gateway to the South East Asian region and the Malaysian business community could make Togo a platform to penetrate the rapidly developing West African market," he added.

Meanwhile, the networking session, hosted by Exim-Bank, was supported by the Construction Industry Development Board, Malaysia External Trade Development Corporation and the Malaysian Industrial Development Finance Bhd.

The session offered a rare opportunity for the local business community to gain greater insights into Togo as an investment destination.

Speaking at the same event, Exim Bank chief business officer Chairil Mohd Tamil said local companies should tap opportunities available in Togo.

"We are encouraging investors especially viable small and medium sized enterprises to venture abroad," he said.

As a wholly-owned financial institution by the Malaysian government, Exim-Bank supports Malaysian-owned business by offering diversified banking and credit insurance products and services, including advisory services on overseas business ventures.