Bank Islam, Petronas, SJPP ink MOU to assist Petronas vendors

Bernama

7 May 2018

BANK ISLAM, PETRONAS, SJPP INK MOU TO ASSIST PETRONAS VENDORS

KUALA LUMPUR, May 7 (Bernama) -- Bank Islam Malaysia Bhd (Bank Islam), Petronas and Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) will collaborate to provide a financial solution to Petronas' vendors, nationwide, via the Small and Medium Enterprises (SMEs) Vendor Financing Programme.

This follows the signing of a memorandum of understanding (Mou) today between the three parties which aims to improve access to financing and liquidity to the local oil & gas services and equipment (OGSE) sector.

In a joint statement, the parties said the financing programme was opened to Malaysian SMEs, which have contracts with Petronas and were in compliance with Bank Islam's credit assessment and SJPP's eligibility and criteria.

The SMEs, which make up 97 per cent and 65 per cent of Malaysia's total business establishment and employment, respectively, contributed 36 per cent to the country's Gross Domestic Product (GDP).

"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," said Bank Islam Chief Executive Officer, Khairul Kamarudin.

As at March 2018, Bank Islam had financed 1,235 SME customers with a total financing of approximately RM2.9 billion.

Meanwhile, as part of the initiative, SJPP, a wholly-owned agency under the Ministry of Finance, would act as the credit guarantee provider that provides up to 70 per cent credit guarantee to eligible OGSE SME vendors in obtaining financing facilities.

"The government is committed to support 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," said its Principal Officer, Dr Nungsari Ahmad Radhi.

To date, a total of 15,780 SMEs have benefited from various schemes under SJPP.

- BERNAMA

Web source: http://www.bernama.com/en/news.php?id=1462130