Malaysia Exim-Bank to increase shariah loan portfolio

Encouraged by growing demand and acceptance for shariah loans.

The Export-Import Bank of Malaysia Bhd (Exim Bank) wants to boost its shariah loans and plans this segment to contribute some 30% of its total loans by 2015 from 20% currently.

CEO Datuk Adissadikin Ali said the growth of shariah loans could become more robust if other countries had adequate infrastructure for Islamic finance like Malaysia.

He noted that the legal systems in other countries may not be well developed as in Malaysia, which explains why this part of the business has not been growing fast.

On the government allocation for total disbursements of US$1.6 billion this year, a total of of US$946 million was disbursed as of June 30.