MUMBAI: A deal has been signed between Export-Import Bank of Malaysia Bhd (Exim Bank) and ICICI Bank Ltd and YES Bank of India to further enhance Malaysia-India trade — especially for palm oil.
Through this collaboration, Exim Bank will provide credit lines to ICICI Bank — India’s largest private sector bank — and YES Bank to facilitate the imports of goods from Malaysia.
“It is hoped with this enabling financing infrastructure, Exim Bank can partake in increasing the movement of goods and services between the two countries,” Exim Bank managing director and chief executive offi cer Datuk Adissadikin Ali said in a statement.
Although the facility is open to all manufactured goods and commodities from Malaysia, it is envisaged that palm oil will be among the leading sectors that will benefi t from the scheme in view of the importance of Indian market to Malaysia’s palm oil.
Exim Bank is expected to replicate the scheme in other economies as well.
Palm oil plays a significant role in the trade structure between the two countries.
Malaysia’s palm oil export to India is expected to exceed 1.82 million tonnes in 2012, Plantation Industries and Commodities Minister Tan Sri Bernard Dompok said.
“This year, even though it is still too early to tell what the final figure will be, the observation during the first quarter of 2012 looks very promising, with Malaysia’s export of palm oil products to India expected to exceed what was recorded last year.”
He said palm oil import by India in the first quarter of 2012 almost doubled to 576,645 tonnes from 286,214 tonnes in the first quarter of 2011.
Malaysia exported more than 1.82 million tonnes of palm oil products to India in 2011 valued at RM6.03 billion.
Source : The Malay Mail