MEDIA RELEASE
For immediate release
EXPORT COVERAGE SCHEME LAUNCHES LIMIT TOP UP FACILITY
MR No.: 055/09
Singapore, Tuesday, 6 October 2009
1. International Enterprise (IE) Singapore’s Export Coverage Scheme (ECS, 出口保证计划) now has
a limit top-up facility. This allows Singapore companies to increase their trade credit insurance by
two times of their underlying policy, up to an additional S$2 million per insured buyer.
2. Launched in March 2009, the ECS offers qualified Singapore-based companies protection
against non-payment from buyers, with 50% of the insurance premium (up to S$100,000)
subsidised by the government.
3. The global economic downturn has made insurers increasingly conservative, resulting in
reductions in insured amount. This means that Singapore-based companies are now more
vulnerable to the risk of non-payment from their buyers. For Singapore companies whose trade
financing is supported by trade credit insurance, their bank lines will then also be correspondingly
reduced.
4. An example of how the top-up facility works: A Singapore-based wholesaler of petrochemicals
supplies coating resins to its customers in China and other parts of Southeast Asia. It requires
S$3 million of trade credit insurance to cover against default payment by its major customers.
However its underlying policy can only provide S$1 million of coverage. Under the ECS, the
company can then buy top-up to cover two times the amount provided by the underlying policy,
up to S$2 million, to restore cover to its required amount and maintain its business operations.
5. Since its launch, ECS, with its subsidised insurance premium, has insured a total trade turnover
of almost S$400 million. Said Mr Roy Teo, Managing Director of FHF Safety Products Pte Ltd,
“The export credit insurance scheme is a great form of assurance especially during this difficult
business period. Ever since employing this scheme, we have been able to trade confidently with our
customers and at the same time, lower our costs through the premium subsidy. The increase in credit
limit and better terms to our customers have helped them increase their business. This in turn is a
win-win business partnership.”
6. For more information on the ECS scheme subsidy and top up, please contact Aon Singapore,
Scheme Manager, at 1800-266 4327 (AONIECS) or visit the website: www.aoniecs.sg.
Note to Editor:
Please use ‘IE Singapore’ or ‘IE’ if an acronym for ‘International Enterprise Singapore’ is required. In
addition, unless otherwise stated, the use of statistics cited in our media releases, website or Statlink,
should be attributed to IE Singapore.
For media enquiries or interview requests, please contact:
Ms Daphne Lye
Assistant Manager, Corporate Communications Group
DID: + 65 6433 4476
HP: + 65 9436 1227
Fax: + 65 6337 8136
Email : daphne_lye@iesingapore.gov.sg
Please visit www.iesingapore.com for more information
