logo

Export Import Bank of Malaysia Berhad Assignment

   

Added on  2021-04-07

13 Pages4966 Words32 Views
Table of Contents1. Introduction.............................................................................................................................................12. Background.............................................................................................................................................12.1 Factors...............................................................................................................................................22.1.1 Buyer Credit Facility..................................................................................................................22.1.2 Overseas Project Financing Facility............................................................................................22.1.3 Guarantee Facility.......................................................................................................................22.1.4 Supplier Credit Facility...............................................................................................................22.1.5 Export of Services Facility..........................................................................................................22.1.6 Export Credit Refinancing..........................................................................................................32.1.7 Comprehensive Policies (Shipments/ Contracts/ Services rendered)..........................................32.1.8 Bank Letter of Credit Policy.......................................................................................................32.1.9 Buyer Credit Guarantee..............................................................................................................32.1.10 Overseas Investment Insurance.................................................................................................33. Objectives................................................................................................................................................34. Recommendation’s..................................................................................................................................44.1 Opportunities....................................................................................................................................44.2 Risks...................................................................................................................................................64.2.1 Product Risks..............................................................................................................................64.2.2 Manufacturing Risks...................................................................................................................74.2.3 Transport Risks...........................................................................................................................74.2.4 Currency Risks...........................................................................................................................74.3 Strategies...........................................................................................................................................95. Conclusion.............................................................................................................................................116. References.............................................................................................................................................11

1. IntroductionThis report discussed on international trade finance point of view focuses on export import bankof Malaysia berhad (EXIM bank) international trade activities, and strategic opportunities infurther expansion of company market (Felbermayr, & Yalcin, 2013). On this perception thereport explains on company background, key success factors, and objectives in seeking theforeign investment in Malaysia (Ask ́enazy, Caldera, Gaulier, & Irac, 2011). Finally therecommendation’s towards foreign country for company direct investment, new businessopportunities, risks and management strategies. International trade finance is emphasizing onfinancing for trade at domestic and international trade transactions on new projects (Becker,Chen, & Greenberg, 2013; Morel, 2011). On this perception the key players are seller, buyer ongoods and services transactions. Therefore the different intermediaries are such as banks andfinancial institutions providing international trade transactions (Eaton, Kortum, Neiman, &Romalis, 2011), therefore this report discussing international trade transactions on HondaMalaysia, business investments. 2. Background The export import bank of Malaysia berhad (EXIM bank) is started in 1995 as a governmentcontrol development financial institutions (Almunia, Benetrix, Eichengreen, O’Rourke, & Rua,2010). Its key task is providing effective financing and insurance solutions for cross border. Theimportance of the bank is promoting reverse investment as well as export of strategic areasparticularly infrastructure products, capital goods, shipping, benefits to the Malaysian industriesto new markets and value added production products as well as nontraditional markets(Felbermayr, & Yalcin, 2013). Vision of the company is preferred financier and advisor for global business; mission iscontributing growth of Malaysia’s economy to international trade transactions partnershipworldwide (Wakasuki, 2009). Export Import Bank of Malaysia Berhad (EXIM Bank). EXIM Bank’s objective is to drive thedevelopment of Malaysian exports and foreign investments abroad by providing a range ofexport financing, guarantees and export credit insurance facility (Eck, Engemann, & Schnitzer,2011).

2.1 Factors 2.1.1 Buyer Credit FacilityTo provide opportunities to the Malaysian exporters and contractors in bidding for overseas jobsand contracts. The loan is extended directly to a foreign buyer or a lending institution to facilitatethe import of Malaysian goods and services (Almunia, Benetrix, Eichengreen, O’Rourke, & Rua,2010). Loan disbursements are made directly to the Malaysian exporter/contractor 2.1.2 Overseas Project Financing FacilityThe facility supports Malaysian investors undertaking projects overseas such as manufacturing,infrastructure and other developmental projects. Available to Malaysian companies or controlledjoint-venture companies incorporated overseas for the purchase of Malaysian goods (Ask ́enazy,Caldera, Gaulier, & Irac, 2011). Loan disbursements are generally made directly to theMalaysian exporters or contractors. 2.1.3 Guarantee FacilityThe guarantee facilities are available to facilitate the issuance of bonds or guarantees such asadvance payment bond and performance bond for overseas contract undertaken by Malaysiancontractors (Topalova, & Khandelwal, 2011). 2.1.4 Supplier Credit FacilityMalaysian manufacturers, exporters and suppliers of Malaysian made goods can take advantageof this facility to boost their exports into international markets through pre and post shipmentsupplier credit facility (Shaver, 2011).2.1.5 Export of Services FacilityFacilitate Malaysian companies to export their professional services overseas which may be inthe form of consultancy, in areas like information technology, construction, telecommunications,management or other technical services (Van Der Veer, 2010).2.1.6 Export Credit RefinancingExport Credit Refinancing Scheme promote the exports of Malaysian manufactured products,agricultural products and primary commodities by offering competitive interest rate to Malaysianexporters via commercial banks participating in the Scheme (Felbermayr, & Yalcin, 2013).

2.1.7 Comprehensive Policies (Shipments/ Contracts/ Services rendered)A policy that provides protection for exporters against any losses arising from non-payment inrespect of goods/services exported on credit terms of not more than 180 days (Topalova, &Khandelwal, 2011).2.1.8 Bank Letter of Credit PolicyA policy covering Malaysian banks that negotiates or discounts without recourse IrrevocableLetter of Credit issued by overseas banks in respect of Malaysian exports (Shaver, 2011).2.1.9 Buyer Credit GuaranteeGuarantee of repayment of fixed or floating rate loans lent to foreign buyer for Malaysian goods.The minimum credit term is one year up to ten years (Van Der Veer, 2010).2.1.10 Overseas Investment InsuranceA policy to cover non commercial risks of loss to the investment or business established overseasby Malaysian enterprises such as transfer restriction, expropriation, war & civil disturbances andbreach of contract (Morel, 2011)3. Objectives Trade agreements regulate international trade between two or more nations. An agreement maycover all imports and exports, certain categories of goods, or a single category (Morel, 2011).Several general trade agreements have shaped trade policy on broad levels. The most importantgeneral trade agreement is called, simply enough (Shaver, 2011).To a large degree, the role of general agreement on tariffs and trade as an organization has beensuperceded by the World Trade Organization (Felbermayr, & Yalcin, 2013).To liberalize trade, promote economic growth, and provide equal access to markets among themember nations (Shaver, 2011).Trade agreements, provides a forum for trade negotiations and resolving trade disputes, monitorstrade policies, and provides technical assistance and training for developing countries(Felbermayr, & Yalcin, 2013).

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
7BSP1245 - Hsbc Policy in Managing Credit Risks
|5
|698
|19

Advantages and Disadvantages of Exporting Processes and International Marketing Methods
|3
|1562
|110