WT/TPR/S/292/Rev.1/Corr.1  
 
3 April 2014  
(14-2052)  Page: 1/2  
Trade Policy Review Body   
 
 TRADE POLICY REVIEW 
REPORT BY THE SECRETARIAT 
MALAYSIA  
Corrigendum* 
In Chapter 3, paragraphs 3.81 and 3.103 should read as follows: 
 
3.81.  Export finance schemes (facilities) are made available via Malaysian commercial and/or 
developmental financial institutions (FIs). Export-Import Bank of Malaysia Berhad a developmental FIs wholly owned by Minister of Finance Inc.  (section 3.4.2) promotes the development of 
cross-border transactions through provision of loan/financing facilities (at commercial rates) and 
insurance coverage to Malaysian businesses. The rates fixed to any lending are subject to credit 
assessment and mainly charged at cost of fund plus  an added spread. The range of spread reflects 
the bank's assumed risk. Exim Bank also provides commercial banks with coverage for losses 
against loans to exporters and suppliers. It also continues to provide various schemes including 
the Export Credit Refinancing (ECR) Scheme, and offers insurance against non-payment by buyers 
arising from commercial and political risks. The Bank's total assets were RM 7.3 billion on 
31 December 2012, a 16% growth over the previous  year. Net loans and financing grew by 62% 
with RM 3.2 billion compared to RM 1.9 billion in 2011. Total disbursement more than doubled, from RM 1.2 billion to a total of RM3.1 billion. Under Malaysia's Palm Oil Credit and Payments Arrangement (POCPA) scheme for palm oil and its products, government to government MOUs and 
central bank to central bank agreements set out the following terms: long-term contract between 
supplier and buyer, repayment period up to two years, and interest based on three-month LIBOR  
determined on a quarterly basis.  
3.103.  GLCs and their controlling shareholders, the seven GLICs
132, remain a significant part of 
the Malaysian economy as they have been used to spearhead infrastructure and industrial projects, and constitute the main actors in oil and gas, key strategic utilities, and services 
including electricity, telecommunications, postal services, airlines, airports, public transport, water 
and sewerage, banking and financial services.
133 GLCs employ an estimated 5% of the workforce, 
and accounted for approximately 36% and 54%, respec tively, of the market capitalization of Bursa 
Malaysia134 and the benchmark Kuala Lumpur Composite Index. In April 2012, there were 
30 non-financial public enterprises (NFPEs), of which 9 are listed on the Bursa Malaysia, and the 
Government operated more than 200 industrial estates through its 13 state economic development 
                                               
* In English only. 
132 GLCs are controlled by GLICs such as Khazanah Nasi onal (the Government's sovereign wealth fund), 
Permodalan Nasional or the Employees Provident Fund  (EPF), holds control. Khazanah owns stakes in 
companies competing in many of the country's major in dustries, and the Prime Minister chairs its Board of 
Directors (EIU, 2012a; and U.S. Department of Commerce/U.S. Commercial Service, 2012). 
133 State-owned entities own sizeable stakes in the financial sector, including in the two largest domestic 
commercial banks: Malayan Banking (Maybank) and CIMB  Bank. The Government has traditionally used this 
control to, inter alia,  help fund political programmes and to grant loans in exchange of favours, though these 
practices have become less common with improvements in corporate governance (s ection 3.4.5) (Putrajaya 
Committee on GLC High Performance online information. Viewed at: http://www.pcg.gov.my/FAQ.asp ; 
U.S. Department of Commerce/U.S. Commercial Service, 2012; and EIU (2012a).  
134 GLCs in which the Government holds a controlling stake represented 5% of all companies listed on 
Bursa Malaysia in April 2012. Only a minority portion of stock is available for trading for some of the largest publicly listed companies (EIU, 2012a ; and U.S. Department of Commerce/U.S. Commercial Service, 2012). WT/TPR/S/292/Rev.1/Corr.1 
 
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  corporations (SEDCs).135 The three largest NFPEs are PETRONAS (petroleum), Tenaga Nasional 
(electricity) and Telekom Malaysia (telecommunications), which together generated around two thirds of the estimated aggregate NFPE revenues of RM 307.4 billion in 2011. Another 30 GLCs listed on the Bursa Malaysia are either financial public enterprises or companies controlled through 
GLICs; they are involved in, inter alia , automotive, tractors, and building activities.
136 The 
Minister of Finance Inc.  had partial or full ownership in 95 companies. No data on the 
production and trading (domestic sales, imports, exports) activities of all GLCs/SOEs since 2010 
were provided by the authorities. 
__________ 
                                               
135 SEDCs often offer incentive packages to inve stors, and several have set up manufacturing 
enterprises, sometimes jointly with the federal government an d sometimes with privat e (including foreign) 
investors (EIU, 2012a). 
136 They are: Affin; Avenue Capita l Resources; Boustead Holdings; CIMB Bank; CIMB Group (formerly 
Bumiputra-Commerce Holdings); Guthrie Ropel; Island & Peninsular; Kinta Kellas; Malayan Banking; Malaysia 
Building Society; Malaysia National Reinsurance; Malaysian Industrial Development Finance; NCB Holdings; 
PLUS Expressways; MNI Holdings; Petaling Garden; Pharmaniaga; Proton; RHB Bank; Sime UEP; Time 
DotCom; Time Engineering; Tractors Malaysia; UEM Builders; UEM World; and UMW Holdings (EIU, 2012a).