KUALA LUMPUR: Six banks signed a letter of intent (LOI) yesterday with the Ministry of Economy, advancing financial facilitation to support the Johor-Singapore Special Economic Zone (JS-SEZ), said Economy Minister Datuk Seri Rafizi Ramli.
The six banks are Malayan Banking Bhd (Maybank), CIMB Bank Bhd, Bank of America, HSBC Bank Malaysia Bhd, Sumitomo Mitsui Banking Corporation and CGS International Securities.
According to Rafizi, the LOI is the first decisive step in realising the economic vision of JS-SEZ.
“It (the LOI) is centred on the four key pillars, the first being financing support in strategic areas. The second and third focus on promotion and stakeholder engagement, and the fourth pillar looks at research and market intelligence,” he said at the S-SEZ Partners Dialogue: Advancing Facilitation Forum today.
Rafizi highlighted that the partnership with a wide array of banks spanning each corner of the globe indicates something bigger than two Asean countries coming together.
“With banks being the conduits of capital, their presence is critical to galvanising private sector participation through the pooling of capital and commerce.
“Having the buy-in from these anchors of the financial system is perhaps the best show of progress and belief in JS-SEZ to date,” he added.
The minister also noted that the international, regional and local banks would plan and develop their own programmes on how much their allocation or commitments to facilitate the financing program in supporting the JS-SEZ and future investors.
“When we pre-select the banks, we judge them on their strategy and clientele to fit with JS-SEZ. The idea is to make sure that we have large international banks to cater to each region.
“At the moment, we leave it to the banks to decide their capital allocation or to develop their own programmes for JS-SEZ, but these banks know they have direct access to government policy and assistance that provides them the advantage when they try to convert their clients to come to JS-SEZ,” he added.
In the meantime, Rafizi gave an assurance that the JS-SEZ Blueprint will be launched at the end of the year. It will comprise a comprehensive roadmap outlining the long-term vision, strategic aspirations, and investment opportunities within the special economic zone.
“Think of it as a one-stop document for potential investors, policymakers, and the general public,” he said. – Bernama
