Bank Islam, Petronas And SJPP Ink An Mou To Assist Petronas Vendors Through Sme Vendor Financing Programme


7 May 2018


Caption: Standing from left to right: En. Mazuin Ismail, Senior Vice President, Project Delivery and Technology, PETRONAS; Puan Norliza Nawi, Senior General Manager, Corporate Project, PETRONAS; Tan Sri Wan Zulkiflee Wan Ariffin, President and Group Chief Executive Officer, PETRONAS; En. Samsudin Miskon, Vice President, Group Procurement, PETRONAS; En. Abdul Rashid Abdul Hamid, Head, Commercial Banking, Bank Islam; En. Chen Yin Heng, Senior General Manager, SJPP; Datuk Zamani Abdul Ghani, Chairman, Bank Islam; Dr. Nungsari Ahmad Radhi, Principal Officer, SJPP; En. Khairul Kamarudin, Chief Executive Officer, Bank Islam; Puan Juanita Rusmini Abdul Jalil, General Manager, SJPP; Puan Noorshiha Mohammad, Assistant General Manager, SJPP.

KUALA LUMPUR, May 7 (Bernama) - Bank Islam Malaysia Berhad (“Bank Islam”) today signed a Memorandum of Understanding (“MOU”) with Petroliam Nasional Berhad (“PETRONAS”) and Syarikat Jaminan Pembiayaan Perniagaan Berhad (“SJPP”) to provide financial solution to PETRONAS vendors nationwide via SME Vendor Financing Programme aimed at benefitting the local Oil & Gas Services and Equipment (“OGSE”) sector.

SMEs makes up 97% of total business establishment in Malaysia and 65% of Malaysia’s employment. This segment contributes 36% of Gross Domestic Product (GDP) of the country and 18% of Malaysia’s export. As at March 2018, Bank Islam has financed 1,235 SME customers with a total financing of approximately RM2.9 billion. With the aim of improving access to financing and liquidity to the OGSE players, Bank Islam, PETRONAS and SJPP collaborate via the SME Vendor Financing Programme, open to Malaysian SMEs, which have contracts with PETRONAS and are in compliance with Bank Islam’s credit assessment and SJPP’s eligibility and criteria.

Signing on behalf of PETRONAS was the Vice President of Group Procurement, Encik Samsudin Miskon and Bank Islam was represented by the Head of Commercial Banking, Encik Abdul Rashid Abdul Hamid. SJPP was represented by its Senior General Manager, Mr. Chen Yin Heng.

The signing ceremony was witnessed by Tan Sri Wan Zulkiflee Wan Ariffin, President and Group Chief Executive Officer of PETRONAS; Encik Khairul Kamarudin, Chief Executive Officer of Bank Islam and Dr. Nungsari Ahmad Radhi, Principal Officer of SJPP.

Encik Khairul Kamarudin said, “Bank Islam has been taking realistic approach towards designing innovative products to meet the need of the Small Medium Enterprises (“SMEs”). Through this partnership, we are able to serve the real economy which represents one of our value-based intermediation initiatives as well as to support the government’s initiative to enhance and stimulate the SME business growth in this country. We are also committing ourselves to looking after the larger enterprises and communities, thus contributing towards economic resiliency and social wellbeing.”

PETRONAS Senior Vice President of Project Delivery & Technology, En Mazuin Ismail said: “PETRONAS initiated this collaboration as part of the many efforts undertaken to sustain and maintain the resiliency of the Malaysian OGSE sector. We value the partnership that we have entered today with Bank Islam and SJPP which we believe will ease the challenges faced by the OGSE vendors.”

As part of the initiative, SJPP, a wholly owned agency under the Ministry of Finance, will act as the credit guarantee provider. SJPP will support the programme by providing up to 70 percent credit guarantee to eligible OGSE SME vendors in obtaining financing facilities. As a collaboration partner, PETRONAS’ role is solely to promote the financing facility to its SME vendors, as well as validate the vendors’ information and contracts.

Dr. Nungsari Ahmad Radhi, Principal Officer of SJPP said, “The Government is committed to support the SME businesses and has been providing continuous support in developing SMEs via various initiatives, products and services, including the various Government guarantee schemes managed by SJPP. To date, 15,780 SMEs have benefited from the various schemes under SJPP. We welcome any collaboration with Financial Institutions (“FIs”) and other parties that can fit our mandate to assist and reach out as many SME market players as possible since SME industry is targeted to contribute 41% towards the economy by 2020 as stated in the SME Masterplan.”

Bank Islam is committed to be part of the financial ecosystem in providing financial solutions to the OGSE vendors. We are keen to provide financing option to the vendors, as one of the many ways it can add value to the sector. The Bank takes great pride in its innovative approach towards client servicing by offering the most extensive network coverage and capabilities to support OGSE sector’s requirements. This programme also helps promote its existing products particularly financing facilities that cater to the needs of SME customers for their specific procurement or contract.

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