FOR MALAYSIAN CONTRACTORS

Client

Construction Industry Development Board (CIDB) Malaysia

Products & Services

• Policy Planning
• Strategic Business Planning
• Implementation Support

“Devising a portfolio of financing policies and products that could strengthen the access to financing for local contractors who are aspired to undertake overseas assignments.”

Description of Project

Client

The client is a government agency mandated to regulate, develop and facilitate the nation’s construction industry towards achieving global competitiveness. It is responsible to advises the Federal and the State Governments, as well as other stakeholders on matters affecting or connected with the construction industry.

Background

As a national collaborative effort the continued growth and success of the construction industry, a Construction Industry Transformation Programme (CITP) was launched in 2015.

The client’s division is responsible to spearhead the initiatives under the Internationalization Thrust of CITP, focusing on initiatives to strengthen Malaysian construction companies’ access to international market.

Challenges & Expectations

According to industry insights, one of the key challenges faced by Malaysian contractors is the access to project financing. In light of this, the client wish to conduct a study to identify potential financing products that could support contractors for overseas assignments.

Our Role on the Project

Scope of Services

Our scope is to identify sufficiency & efficiency of existing financing products, and recommend innovative solutions in enhancing access for financing for Malaysian companies in undertaking construction & construction-related projects abroad.

Solutions / Outcomes Delivered

The project team begin with a situational analysis to understand the issues & challenges faced by Malaysian construction players and SMEs in getting financing for overseas projects.

With the challenges identified, we have studied the effectiveness of current disbursement of financing products provided by financial institutions (FIs) and development agencies for overseas project financing. This includes a detail evaluation on the existing financing products offered.

With the evaluation outcomes and rounds of syndications with relevant stakeholders, we have proposed a list of 12 financing products, together with the roles & responsibilities of stakeholders (policy maker, banks, FIs, industry players) to be involved in the implementations.