- Region: Asia
- Manufacturing and Services
- Untied Loans
May 28, 2009
- JBIC*1 signed an Untied Loan agreement for an aggregate amount of up to US$100 million with the RHB Bank Berhad, a Malaysian commercial bank.
- The loan aims to support corporate financing activities amid the pervasive impact of the global financial crisis. Specifically, the loan will provide long-term financing to Japanese companies in Malaysia, where 1,432 Japanese firms*2 are operating businesses mainly in the manufacturing sector, as well as local companies within their supply chain in Malaysia, through RHB Bank Berhad, the 4th largest bank in Malaysia.
- A plunge in economic activity worldwide triggered by the global financial crisis has seen Japanese affiliates and Malaysian firms confronted with severer business conditions and rapid decrease in production. This is especially pronounced in the export sector. In January this year, the Japanese Chamber of Trade and Industry, Malaysia (JACTIM) submitted an urgent proposal, which included financing measures to counter a rapid downturn in the business environment, to the Malaysian government. This reflected growing expectation for an effective policy response. To meet the needs of these firms in a timely manner, JBIC has considered this loan as a concrete support measure. Previously, JBIC had provided two loans to RHB Bank Berhad, in April 2006 and March 2008. Based on cooperative experience to date between JBIC and RHB Bank Berhad, this third loan is expected to quickly promote funding access for Japanese affiliates and Malaysian firms.
- Japan and Malaysia signed an Economic Partnership Agreement (EPA) in December 2005 (which came into effect in July 2006) that included cooperation to improve the business environment. This loan will support business activities, including trade and investment, by improving the financing environment, thereby contributing to strengthening of the mutually beneficial economic partnership between Japan and Malaysia.
- In response to the current global economic deterioration, JBIC is committed to implementing effective measures to support the overseas business activities of Japanese affiliates by utilizing a variety of financial instruments.
- *1 JBIC is the international wing of the Japan Finance Corporation (JFC; Governor: Shosaku Yasui).
- *2 As of April 2009, according to JACTIM.