China Construction Bank makes move to build regional digital trade platform

China Construction Bank makes move to build regional digital trade platform

15 Jul 2021

China Construction Bank (Malaysia) Bhd (CCBM) and China Construction Bank Corporation Labuan Branch (CCBL) have signed a Memorandum of Understanding (MoU) with three firms to build a comprehensive “regional single window” (RSW) digital platform to facilitate trade.

The RSW has been mooted to promote international trade facilitation with major trading partner nations and to assist small and medium enterprises (SMEs) in export and import financing through an ecosystem approach. It is an artificial intelligence-based trade facilitation digital platform that connects trade finance, insurance and logistics in one single marketplace.

In a statement to Bernama today, CCBL said the three firms — SealNet Sdn Bhd, Bay Supply Chain Technology Sdn Bhd (CapBay) and Labuan Digital Authentication Centre Inc (DAC) — signed the MoU on Wednesday, witnessed by Export-Import Bank of Malaysia Bhd (EXIM Bank).

CCBM chief executive officer Felix Feng Qi, SealNet representative Datuk Patrick Wong, CapBay executive director Ang Xing Xian and DAC director Datuk Tee Ting Cham signed the document in a ceremony.  

To complement the RSW, the Chinese banking group’s smart matchmaking platform — CCB Match Plus —- will integrate domestic and international data to facilitate the matching of cross-border merchandise.

CapBay will supplement the RSW ecosystem with an e-trade financing platform to present Malaysian SMEs with better access to trade financing while SealNet will connect the RSW to importers, exporters, manufacturers and trade-related businesses.

During the ceremony, EXIM Bank’s officer-in-charge Chin Chon Young said in a joint statement that the MoU signified “the start of an exciting development for the exporters and importers in Malaysia as the RSW is designed with convenience and financial accessibility in mind, backed by digital technology”.

CCBM deputy general manager Wang Qijie said CCBM has shown support for the establishment of the RSW.

“By having direct linkage, it would create a business value chain for our customers where a match-made business in CCB Match Plus could flow through seamlessly to the RSW for transaction execution,” he said.

SealNet’s Wong said the company is looking to address the “pain points” that have hindered efficiency and led to unnecessary costs in the industry.

“SealNet is built to bridge global supply chains and logistics to enhance the efficiency of transport and trade facilitation mechanisms, to improve the productivity of freight logistics, and to provide a better electronic system for logistics and cross-border trade.

“Customers, big and small, can have easy and secured access to SealNet’s digital trade platform anytime, anywhere to enjoy time and cost savings, as well as operate in real-time with data accuracy,” he said.

In 2020, Malaysia’s total exports represented 26% of its GDP, compared with 22.1% in 2019.

“With the growing export trend, the RSW will further support and create a strong foundation to ease and cultivate additional trades within the region. Under the MoU, by leveraging on the expertise of the partners, the parties will collaboratively build a comprehensive trade financing credit model as the key component to support the e-trade financing platform,” he added. Collaborating partners also agree to work together in the area of linking CCB Match Plus to the RSW ecosystem, with CCBM to handle clearings and settlements behind the scenes.

Source: Bernama