As part of efforts to update Japanese investors in Malaysia on economic and banking issues, Maybank and Mizuho Corporate Bank jointly organized a seminar today at Menara Maybank.

The seminar is part of an on-going series to keep these investors abreast of latest developments in the financial and economic aspects which can assist them in their business operations.

Maybank's Japanese corporate customers totals 230 with outstanding facilities of RM1.9 billion. Maybank's facilities to Japanese businesses range from deposits to financial facilities such as overdrafts, term loans, revolving credits, trade finance to remittances and forex as well as cash management services.

"The Japanese customers are therefore important to us and in 2003, Maybank created the Japan Desk in collaboration with Mizuho Corporate Bank to focus on enhancing our services to Japanese clients both in Malaysia and Japan. Since the establishment of the Japan Desk, we have managed to increase our Japanese client's loan portfolio by about RM400 million," said Encik Agil Natt, Deputy President of Maybank in a welcome address at the Seminar

Also present at the seminar was Mr. Kazumasa Domen, General Manager of Mizuho Corporate Bank Ltd. Two papers were presented, one by Maybank entitled: "Options for Financing under Islamic Banking" while another was by Mizuho entitled: "Southeast Asia's Economy vis-?vis China's Economy and prospects of return of high growth".

Maybank's collaboration with Mizuho via the Japan Desk covers areas such as credit facilities, cash management services, remittance, M&A and investment banking, exchange of economic and forex information and advisory services. The seminar is part of Japan Desk's services to Japanese customers. Encik Agil said that Islamic banking is already a well accepted and viable financial alternative and Maybank Malaysia with an established framework and delivery channels is able to provide a comprehensive range of Islamic products and services for Japanese businesses.

According to Bank Negara Malaysia as at end-2004, the total assets of the Islamic banking sector increased to RM94.6 billion, which accounted for 10.5% of the total assets in the banking system. The market share of Islamic deposits and financing also increased to 11.2% and 11.3% respectively. In 2000, the domestic Islamic banking industry has been growing at an average rate of 18% per year in terms of assets. The authorities have implemented a 10 year structured consumer education program to increase consumer awareness on the unique characteristics of Islamic financial products and products offered by Islamic financial service providers.

Maybank is the largest Islamic Banking player in the country and as March 2005, it has share of 32% in financing. Islamic financing to business customers has grown to 39% of total Islamic financing of over RM16.8 billion of which trade financing accounted for RM 2.9b or 56.4% of the country's Islamic trade financing market. Aseambankers, the investment arm continues to be a major leader in providing funding in the Islamic capital markets.

"Our portfolio of Islamic banking facilities for our Japanese clients is about RM700m comprising term financing and trade financing. Our commitment in promoting Islamic banking to our customers is reflected in the availability of our wide range of competitive products covering needs of our retail and business customers as well as our established network of delivery channels, including 9 full fledged Islamic banking centres to support customers," said Encik Agil.

On the prospects of Southeast Asia and China, Mizuho shared on the middle term prospects of these two regions as well as the risk issues affecting their economies.

Malaysia continues to be an investment destination for Japanese businesses and as of March 2005, Japan External Trade Organization (JETRO) reported the number of Japanese companies in Malaysia (that is, Japanese companies and individuals that have over 10% of total shares) totalled 1,307. In 2004, MIDA sources indicated that there were 85 investment projects from Japan worth over RM1.01 billion investments.