Improving the Role of Eximbanks/ECAs in the OIC Member States
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to 180 days as well as third country exports (exports from the supplier's countries to their
destination without passing through Malaysia). There are three variations to the policy:
providing cover to from the date of shipments, date of contract and date of services
rendered.
 Bank Letter of Credit Policy (BLCP): BLCP covers participating banks that negotiate
Irrevocable Letters of Credit (ILC) issued by foreign banks against the foreign issuing bank's
failure to reimburse payment to the beneficiaries (Malaysian exporters) under the ILC. This
ensures payment of the ILC to the exporter’s bank.
 Multi Currency Trade Financing Scheme (MCTF): Malaysian participating commercial banks
finance the production of goods and services by SMEs against ILCs issued by the overseas
Issuing Banks.
 Indirect Exporters' Financing Scheme (IEFS): Benefits SMEs who are indirect exporters
(sellers) by providing coverage to participating commercial banks who discount commercial
documents from the supply of goods and services to direct exporters (buyers).
Medium & Long Term
 Specific Policy: Insures Malaysian exporters who undertake contracts for export of capital
goods or turnkey projects, construction works or provide services abroad, against the risk of
non-payment by the overseas buyer.
Investment Insurance
 Political Risks Insurance: Protects Malaysian entrepreneur’s investments and profits
overseas against political instability.
Bonding Facilities
 Bond Risk Insurance: Insurance for contractor (who is required to provide surety bond to its
principal or contract awarder when undertaking a project overseas) covering any fair calling
on the bond during the validity period. This may be a result of political events in the country
where the project is located that deters the contractor from performing its duty.
Advisory and Other Services
 Advisory services on insurance
Islamic Finance Instruments
Credit
 Overseas Project/Contract Financing-i: Shariah compliant financing for Malaysian investors/
contractors undertaking projects overseas such as infrastructure, manufacturing and other
developmental projects.
 Buyer Financing-i: Financing based on Islamic concepts of Ijarah, Istisna’. Murabahah or
Tawarruq and provided to foreign government/foreign buyers/importers to buy Malaysian
goods and services produced in Malaysia and services rendered in Malaysia or overseas
respectively.
 MalaysiaKitchen Financing-i: Financing based on the Islamic concepts of Ijarah, Murabahah
Istisna’ Murabahah or Tawarruq provided to Malaysians venturing into the restaurant
business overseas with the goal of promoting the export of Malaysian Cuisine and to develop
international Malaysian restaurant franchises overseas.
 Term Financing-i: Financing based on the Shariah principle of Tawarruq provided to
Malaysian owned or controlled companies to serve as working capital financing, financing
overheads or non-asset based transactions in support of exports, projects or contract
requirements and activities.
 Supplier Financing-i: Pre and post shipment financing (working capital for production and
financing of export bill after shipment respectively) based on the principle of Murabahah
and Bai Al Dayn provided to Malaysian manufactures and traders to support their export
trade financing requirement.
 Import Financing Facility-i: Shariah compliant financing to Malaysian owned or controlled
companies, which trade in both exports and domestic markets that demands specialized,
finished or intermediary goods that are unavailable in Malaysia. Eg, high-tech instruments,
calibration instruments and specialized medical equipment.