Service expected to boost growth in trade finance business with China by 15%
Maybank has introduced a Renminbi (RMB) Trade Settlement Service at all its Malaysian branches as well as selected regional offices. The services are available at all 387 Maybank branches nationwide as well as 17 trade finance centres, 39 business centres and 80 international offices located in Singapore, Hong Kong, Labuan, Vietnam, Indonesia, Cambodia, Philippines and Brunei.
The RMB Trade Settlement Service will enable importers and exporters in the region to settle cross-border trade transactions with eligible companies located in Shanghai, Guangzhou, Dongguan, Zhuhai and Shenzhen as well as external enterprises in designate countries, namely ASEAN, Hong Kong and Macau. Mainland Designated Enterprises (MDEs) which are registered with the Chinese Authority are allowed to settle their cross-border trade transactions in RMB. To date, 365 MDEs are designated to undertake RMB Trade Settlement.
"We are seeing signs of continued recovery both in Malaysia and China which will no doubt translate into growth in trade between the two countries. With this new RMB Trade Settlement service launched today, we expect Maybank trade finance billings with China to grow by 15% in the current financial year ending June 2010," said Maybank Head of International, Abdul Farid Alias.
Abdul Farid said that the new service would significantly benefit customers of Maybank in the ASEAN region and Hong Kong who have business relationships with the MDEs. "The RMB Trade Settlement Service offers cost savings as customers now have another currency option apart from the other major currencies being used including the US dollar."
The RMB Trade Settlement Service includes Documentary Collections, Letters of Credit as well as open account transactions involving trade payments via telegraphic transfer.
"The new service will complement Maybank's conventional and Islamic Foreign Current Account (FCA) facility. The FCA facility enables businesses to reduce their foreign exchange risk exposure and save on exchange rate fluctuations. We will also be expanding FCA services to our overseas operations in the coming months to give customers more convenience in their cross-border payments with China and other countries," he said.
"We also believe China's RMB Trade Settlement programme will further enhance trade flows between Malaysia and China. In the first eight months of this year, China was Malaysia's top trading partner with a total two-way trade valued at RM77.32 billion. It was also the second market for Malaysian exports at RM40.14 billion and the top country of origin for imports into Malaysia. This reflects the tremendous potential for the RMB Trade Settlement service," added Abdul Farid.
In China, Maybank currently has a branch in Shanghai and Hong Kong as well as a representative office in Beijing.