After the regional financial crisis of 1997 the Malaysian market is finally beginning to turn around. With a recorded growth in GDP of 19.1%, Mr Quek of Arab-Malyasian Merchant Bank said that factoring companies are now preparing to re-enter the market, buoyed by low interest rates and having gained more confidence than they had just a few years ago.
Whilst the situation in Malaysia has remained relatively stable, the upturn in the economy has meant that banks are now liquid and stable and able to resume loan extension facilities including those to factoring companies which rely largely on financial institutions for funding.
Although membership of the local factoring association has fallen from 17 to 13 this is largely due to the absorption of bank backed factoring houses into factoring divisions. Factoring is also following the banks trend of moving towards more internet transactions and going on-line.
