Exim Bank eyeing big projects in Asia

THE Export-Import Bank of Malaysia Bhd (Exim Bank), which signed a technical collaboration with the Asian Development Bank (ADB) yesterday, is on the lookout to fund big infrastructure projects in the continent to tap the region's potential economic boom.

Source from (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/XIMALI/Article/
Published: August 12, 2012

Exim Bank managing director and chief executive officer Datuk Adissadikin Ali said the government-owned bank had the potential to bag future construction projects in Asia, leveraging on ADB's experience in funding various infrastructure developments involving some of its 67-member countries.

"Malaysian contractors are already investing in infrastructure projects in Indonesia, Laos and Vietnam and they are able to go further in Asia," Adissadikin said here yesterday.

He said together with ADB's expertise in tackling market risks, project financing, due dilligence and diverse legal issues, Exim Bank would be able to penetrate new markets in Asia.

Adissadikin said Exim Bank and the Economic Planning Unit of the Prime Minister's Department had identified construction projects in the Indonesia-Malaysia-Thailand growth triangle, which has funding opportunities for local contractors.

Meanwhile, ADB director for regional cooperation (Southeast Asia department) Arjun Goswani said the less developed areas in Asia were growing at a fast rate and the middle-income side of the region still had potential to absorb susbstantial infrastrucutre projects.

The region's infrastructure needs over the next 10 years are estimated at between US$700 billion and US$750 billion (RM2.1 trillion and RM2.3 trillion), therefore there is still a huge gap to be filled.

"Malaysia has strategically taken the view that it is supporting infrastructure development in Asean through the development of the Asian Infrastructure Fund (AIF), whereby it is a major contributor, major shareholder and co-chair of the board," Goswami said.

The AIF offers much opportunity for Malaysian companies to be involved in the new generation of cross-border regional projects, with the assistance of Exim Bank.