Malaysian exporters are urged to be more aggressive in exporting their products by not relying on letters of credit (LCs), in line with the current trend in developed countries of exporting on non-LC terms.
According to Bank Industri & Teknologi Malaysia Bhd group managing director Md Noor Yusoff, exporters in other countries now offer to export their products without LC terms but they do take insurance. “So Malaysian exporters should utilise Malaysia Export Credit Insurance Bhd's (MECIB) policy as promoted by the government,” he said.
A subsidiary of Bank Industri, MECIB is the national export credit insurance agency that provides a wide range of export credit insurance and guarantee facilities.
Md Noor expressed disappointment that only slightly above 1% of Malaysian exports are covered by the MECIB scheme of insurance. He said exporters should now change their attitude and position to become competitive.
