National Trade Blueprint

28 National Trade Blueprint 8 Strategic Thrusts Objective / Pain points Increasing awareness of alternative sources of trade financing. Key Stakeholders: MOF (Lead), Bank Negara, MATRADE, Securities Commission Malaysia, Financial Institutions Implementation timeline : Short-term (continuous effort) Action plans 1. Create awareness on alternative funding options available for exporters a) Intensify education and awareness initiatives on available alternative financing avenues through joint events and development programmes and related information on the single information portal 2. Facilitate exporters in accessing alternative financing options a) Provide assistance / incentives (e.g., matching investments, tax exemption to providers, helping providers to conduct thorough credit checks, facilitate documentation processes etc.). 3. Develop joint financing programmes for new exporters a) Establish a mix of public and private funds (co-investment fund in the form of matching grant or soft loan) to support new exporting companies. b) Focus on assistance with initial cost of exporting such as certification cost, complying to regulation needs, brand promotion, market research, prototype development etc. 4. Continuous development of alternative financing to cater to the needs of exporters and supply chain ecosystems Objective / Pain points Financing has been restrictive and expensive, and includes stringent collateral requirements, complicated paperwork, lengthy application processes, lack of feedback on applications, etc. Key Stakeholders: MOF (Lead), Bank Negara, EXIM bank, Financial Institutions Implementation timeline: Short-term (continuous effort) Action plans 1. Explore the feasibility of project-based financing structure a) Conduct further studies to assess the feasibility of project- based financing structure, based on viability of the business plan and financial forecasting . 2. Continuous improvement of existing financing initiatives a) Key components of trade financing such as loan and grant requirements should be reviewed on a periodic basis to ensure it is not overly restrictive for exporters. 3. Leverage alternative data to allow better understanding of borrower’s risk profile a) Conduct a study to evaluate the opportunities and risks of leveraging alternative data in export financing. b) Promote the usage of alternative data in credit evaluation. Promote other sources of financing to widen the options for exporters 1.4 Lower the barriers to access financial assistance 1.5 Strengthening Export Ecosystem Thrust 1: