Matrade Dubai seeks ways to crack late payment issue

DUBAI: The Malaysia External Trade Development Corporation (Matrade) is taking steps to help some Malaysian companies overcome problems of late payments from Dubai developers and clients.

"Together with the (Malaysian) embassy, we intend to talk to the authorities concerned, some of the principle contractors here towards resolving the issue," Matrade senior trade commissioner Dzulkifli Mahmud told Bernama Dec 23.

He said the Malaysian firms had to pay suppliers and employees' salary as well as complete projects within the specified timeframe, while weathering tough financial times.

"I hope this can be settled by next year. This is part and parcel of the risks we have to face in business," said Dubai-based Dzulkifli.

Dubai has been adversely affected by the global financial crisis and a deflated property market.

The Gulf Arab state had received US$10 billion funding from the neighbouring emirate of Abu Dhabi to help settle its debt woes.

"Late payments don't mean default on payments. They (clients) still want to pay but at rescheduled dates," Dzulkifli explained.

He believed the same situation occurred in other countries as well.

The trade commissioner also encouraged Malaysian companies embarking on projects overseas to talk to the relevant government agencies, including Exim Bank Berhad, to seek ways to protect their investments.- Bernama


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