KUALA LUMPUR: The Export-Import Bank of Malaysia Bhd (EXIM Bank Malaysia) and the Export-Import Bank of China (China EXIM Bank) have signed a framework agreement to strengthen economic and trade ties between Malaysia and China. This collaboration is anticipated to open new avenues for trade and investment, benefiting both nations, as highlighted in a joint statement by EXIM Bank Malaysia chairman Datuk Charon Mokhzani.

According to BERNAMA News Agency, the agreement includes a provision where China EXIM Bank will grant EXIM Bank Malaysia a line of renminbi credit facilities. This credit line is designated for eligible Malaysian companies engaged in business and trade activities in China, focusing on the purchase of Chinese mechanical and electronic products, complete sets of equipment, and high-tech products and services.

Further stipulations of the agreement emphasize cooperation in natural resources and energy exploration, as well as construction contracting projects between Chinese and Malaysian enterpri
ses. This collaboration extends to various fields such as energy trading, raw materials trading, and mechanical and electronic products trading. The agreement also supports third-party market cooperation projects and other mutually agreed initiatives aimed at facilitating trade growth between the two countries.

The framework agreement underscores cooperation in third-party market projects in Belt and Road Initiative countries and trade transactions between China and Malaysia. It also prioritizes energy and infrastructure projects, including clean energy financing and development, contracting projects involving enterprises from both countries, and green and decarbonized projects developed by Chinese and Malaysian enterprises.