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improves traceability and reporting. Electronic documents can be integrated with a range of IT systems
to support data collection, visibility and analysis. EDI automation supports positive customer

experiences. Enables efficient transaction execution and prompt, reliable product and service delivery.

The disadvantages of EDI are EDI programs are extremely expensive and it is very difficult for

small business to implement. There are various compliance standards working toward in developing a
consistent document format for EDI which can cause problems with cross compatibility between partner
companies. Many large organizations will only require working with others who utilize EDI. A small

company attempting to do business with a large organization may be limited. Each year, most standards
bodies publish revisions to the standards. This poses a problem to EDI users which may be using one
version of the standard while the trading partners are still using older version.

TRADE FINANCE (EXPORT CREDIT REFINANCING

A loan facility that extended to an exporter by a bank in the exporter country that can be used for
multiple purposes such as financing a project. There are two types of ECR whereas pre-shipment ECR,

(financing before exportation of goods) a loan advanced by EXIM Bank to facilitate the production of
eligible goods for export prior to shipment, in order to promote backward linkages to benefit the local

supplier (indirect exporter. In addition, there are post-shipment financing, a loan advanced by EXIM
bank to finance export of eligible goods on usance terms at certain prescribe interest rate. The example
of eligible goods of ECR are agricultural products, selected primary commodities and manufactured

products. The purpose of ECR is to enable financing of production and exporting costs of local
manufacturers and traders. This is intended to promote Malaysia's exports and international trade.

There are several advantages of choosing Public Bank’s Export Credit Refinancing whereas offer

low interest rates, maximum financing period of 120 days (pre-shipment) & 183 days (post-shipment),
minimum nominal value RM10K or up to 95% of export order or amount specified in the Certificate of

Performance (pre-shipment) and 100% value of export bill (post-shipment) and also their financing
available for pre-shipment and post-shipment transactions.

Hence, several disadvantages of Export Credit Refinancing by Public Bank are they did not offer

in Shariah Concept. Like Affin Islamic Bank, they offered Murabahah and Bay al-Dayn concept Next,
Public Bank’s website did not mention specific benefits that they offered to customers. Unlike CIMB
Bank, they stated benefits of ECR which is financing overhead expenses and purchase of domestic

and foreign input.

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