Exim wants higher Islamic financing gains

Export-Import Bank of Malaysia Bhd (Exim Bank)'s Islamic financing contribution to total loans is targeted to increase to 30 per cent within the next two years from 20 per cent, currently.

Its managing director and chief executive officer Datuk Adissadikin Ali said the increase would be supported by higher loan disbursements, targeted to grow at least 30 per cent, annually, until 2015.

"Last year, total loans disbursement surpassed 30 per cent growth, year-on-year, to exceed RM3 billion.

"In 2013, we are targeting RM5 billion in loan disbursements driven by demand from companies to expand business overseas amid slower domestic consumption," he told reporters after the signing of an Islamic financing facility agreement between the bank and Dolphin Application Sdn Bhd today.

Exim chief business officer Md Harris Md Taib signed on behalf of the bank while Dolphin Application was represented by managing director and chief executive officer Eric Low.

On the agreement, Adissadikin said Exim Bank would provide US$10 million (US$1=RM3.10) in Islamic financing facility to Dolphin Application to part finance the contract for the supply of
integrated automation system to palm oil millers in Indonesia.

Meanwhile, Low said the company was currently focusing on marketing its system to Indonesia and Malaysia, two of the world's major producers of crude palm oil and crude palm oil derivatives, after already exporting the system to 11 countries including Thailand, Myanmar, India, Papua New Guinea and Latin America.

"The integrated solution developed by Dolphin Application provides palm oil millers with the productivity that will minimise the operation costs of the production," he said.

The Indonesian palm oil industry grew eight per cent last year to a market size valued about US$49 billion and is expected to expand further by 8.6 per cent this year to reach US$53 billion.-- Bernama