KUALA LUMPUR: The Exporters' Development Incentive Scheme or "Skim Insentif Pemampanan Pengeksport" (SIP2) announced in Budget 2023 will strengthen businesses as well as develop the business acumen of local entrepreneurs or exporters to international levels, Export-Import Bank of Malaysia Bhd (EXIM Bank) said.

"We look forward to helping exporters to achieve their cross-border aspirations with these schemes aiding them," president and chief executive officer Arshad Ismail said in a statement today.

He said under the RM1 billion SIP2 scheme, EXIM Bank is set to offer exporters financing assistance namely Incentive for Financing.

"The financing is given up to RM10 million while the financing rate is reduced by 1.5 per cent for up to seven years," he said.

He said the affordable funding rate would encourage exporters to find new markets for their products and further increase the capability of SMEs as exporting companies in the long term.

"It will also help exporters reduce their operating costs and at the same time increase their income," he said.

The Budget 2023 allocation is revised upward to RM386.14 billion from RM372.3 billion budget in October 2022.

Out of this, management spending is expected at RM289.1 billion while development expenditure is RM99 billion and RM2 billion is for unexpected expenditures.

In addition to that, the Ministry of International Trade and Development (MITI) welcomed the allocation of RM1.585 billion for the ministry and its agencies, which is focused on three key areas such as industry development, international trade and domestic and foreign investment that remain crucial to the ministry in sustaining the economic growth momentum, improving the global supply chain and empowering Malaysia's human capital development.

Among the main initiatives in the Budget 2023 for MITI to achieve its objectives is the easy loans and schemes for small and medium enterprises (SMEs) worth RM3.5 billion, which will be disbursed by various agencies, including EXIM Bank of Malaysia.

- BERNAMA

https://www.nst.com.my/business/2023/02/884054/sip2-announced-2023-budget-will-strengthen-businesses-exim-bank