Exim Bank to fund infrastructure projects in Asean

KUALA LUMPUR: The Export-Import Bank of Malaysia Bhd (Exim Bank), which signed a technical assistance agreement with the Philippines-based Asian Development Bank (ADB) yesterday, is keen to fund infrastructure projects in Asean.

Source from (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2012/8/11/business/11838786&sec=business
Published: August 12, 2012

Exim Bank managing director and chief executive officer Datuk Adissadikin Ali said there were already several Malaysian contractors who had already invested in infrastructure projects namely in Indonesia, Laos and Vietnam.

“We have capable contractors and the infrastructure, and the region provides us with a more viable market as we are familiar with the legal system and economy here, as compared with the other side of the world,” he told a press conference after the signing ceremony.

He said the Exim Bank had discussed with the Economic Planning Unit of the Prime Minister's Department and identified possible projects, mostly in the construction industry, under the ambit of the Indonesia-Malaysia-Thailand Growth Triangle (IMT-GT), and expected them to come onstream within two years.

Meanwhile, Arjun Goswami, ADB director for regional cooperation, South-East Asia Department, said the less developed areas in Asean were growing at a fast rate while the middle-income side of the region still had potential to absorb substantial infrastructure projects.

“The region's infrastructure needs over the next 10 years are estimated between US$700bil and US$750bil; 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 Asean 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 Malaysia.

ADB would assist Exim Bank Malaysia in bolstering its capacity, knowledge support and project development preparation to support key areas of the 10th Malaysia Plan and the Economic Transformation Programme. - Bernama