Improving the Role of Eximbanks/ECAs in the OIC Member States
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Malaysia
Government Control/Oversight
Summary Assessment:
Malaysia EXIM Bank is governed by a Board of Directors which includes representatives from the
government shareholder, as well as related government agencies. Under supervision of the
Central Bank, which has a special regulatory act for government-owned DFIs, Malaysia EXIM
submits and presents its annual budget plans to the Central Bank and is required to update its
performance achievement quarterly basis to the Shareholders. In addition, the Bank is tasked
with undertaking specific tasks, as and when required as per the National Budget
Announcement. For example, when Malaysia EXIM is directly to increase its activities towards
SMES, it works closely with SME Corp, another government agency. The government stays on top
of changes in the market and has struck a good balance between its oversight functions and
public role, while leaving EXIM to be managed professionally. The decision to absorb MECIB into
MEXIM was driven by the government’s imperatives.
Key Dimension Ratings: (1 – lowest, 10 – highest)
Fiscal costs are measured and minimized 8
The government has sufficient control relative to its involvement 9
Government sets clear and attainable objectives 9
The system is regularly reviewed to reflect changes in the private sector 8
Exporter Focus/Service
Summary Assessment:
Malaysia EXIM is very much market-driven and proactive, identifying enterprises/entrepreneurs
that may be participating in the international trade and investment. This is outreach is done
directly or in concert with relevant Government Agencies overseeing specific sectors. Ongoing
efforts are made to ensure existing facilities offered cater the needs of business in venturing
abroad, including a feedback mechanism on the website. Any new product developments are
tailored towards supporting specific business needs and are developed based on the opportunity
as well as engagements with related clients. Pricing is based on commercial consideration which
incorporates credit, market risk as well as internal operational cost plus a margin, which can
vary. New product development as the Bank’ corporate KPIs every year, which in 2014 included
four new Islamic products. The credit insurance product has been less of a focus in year years,
since MECIB was absorbed into MEXIM.
Key Dimension Ratings: (1 – lowest, 10 – highest)
Exporters get the coverage they need in the markets they are doing business 9
The product range meets the needs 9
Pricing is internationally competitive 9
ECA is proactive and demonstrates innovation and flexibility 8