The Exporter Development Incentive Scheme or “Exporter Sustainability Incentive Scheme” (SIP2) announced in Budget 2023 will strengthen business and develop the business of local entrepreneurs or exporters internationally, said Export-Import Bank of Malaysia Bhd (EXIM Bank).
“We hope to help exporters achieve their cross-border aspirations with this scheme that will help them,” EXIM Bank President and CEO Arshad Ismail said in a statement today.
He said under the SIP2 scheme amounting to RM1 billion, EXIM Bank is ready to offer financing assistance to exporters which is the Financing Incentive.
“Financing is provided up to RM10 million while the financing rate is reduced by 1.5 percent for up to seven years,” he said.
He said reasonable financing rates will encourage exporters to find new markets for their products and further increase the ability of small and medium enterprises (SMEs) as exporting companies for the long term.
“It will also help exporters reduce their operating costs and at the same time increase their income,” he said.
The 2023 Budget Allocation was revised up to RM386.14 billion from the RM372.3 billion budget in October 2022.
Of that amount, management expenses are expected to amount to RM289.1 billion while development expenses are RM99 billion and RM2 billion for unexpected expenses.
In addition, the Ministry of International Trade and Development (MITI) welcomes the allocation of RM1.585 billion for ministries and MITI agencies that are focused on three main areas such as industrial development, international trade and domestic and foreign investment which remain important to the ministry in maintaining the momentum of economic growth , improving the global supply chain and empowering Malaysia’s human capital development.
Among the main initiatives in the 2023 Budget for MITI to achieve its objectives is the easy loans and schemes for SMEs worth RM3.5 billion which will be distributed by various agencies including EXIM Bank.
