Petronas Continues To Assist OGSE Vendors Through Financing Solutions With CIMB
20 January 2020
KUALA LUMPUR, 20 January 2020 – Petroliam Nasional Berhad (PETRONAS) and CIMB Bank Berhad and CIMB Islamic Bank Berhad (collectively “CIMB”) have entered into a partnership under the PETRONAS Vendor Financing Programme to offer financing solutions to Small and Medium Enterprise (SME) vendors in the Oil and Gas Service Equipment (OGSE) sector to grow their business and reach their full potential.
The collaboration was marked by a Memorandum of Understanding (MoU) exchange ceremony held here today.
PETRONAS was represented by Project Delivery and Technology (PD&T) Group Procurement Vice President Liza Mustapha, while CIMB was represented by CIMB Group Commercial Banking Deputy CEO Ahmad Shazli Kamarulzaman. The ceremony was witnessed by CIMB Group Commercial Banking Head of MidCorp - Business Banking Yew Teik Beng and PETRONAS Group Procurement Corporate Projects Head of Programme Delivery Norielim Yusoff.
The Vendor Financing Programme is one of the initiatives under the Lestari programme – a solution and collaborative platform to empower SME vendors in the OGSE ecosystem; a strategic collaboration between the Ministry of Entrepreneur Development (MED) and PETRONAS. The Vendor Financing Programme was established in May 2018, to assist Malaysian OGSE vendors adversely affected by the oil price crisis in securing working capital and improving their cash-flow to sustain their businesses.
Under the programme, PETRONAS helps banks facilitate their due diligence through vendor verification, thus simplifying the risk assessment process and reducing approval time.
At the event, Liza said the strategic alliance between PETRONAS and CIMB would further empower SME vendors in embracing market volatility and challenging realities with an array of financing solutions well-matched to SME needs while catalysing the development of the oil and gas ecosystem for the benefit of the nation.
She said the programme continues to make positive impacts on the industry with around 130 applications and RM814 million worth of funding approved as of December 2019.
“The Vendor Financing Programme has benefitted a good and increasing number of SME vendors in the industry. This has resulted in not only vendors being able to stay afloat during trying times, but also propel them towards achieving significant success,” Liza said.
“It goes without saying that the programme would not have achieved such a positive impact without the support of financial institutions such as CIMB that shares the passion to support SME growth in line with the government’s aspiration. We thank CIMB for its proactiveness and commitment to these initiatives that contribute towards empowering and elevating the SMEs in Malaysia,” she added.
CIMB Group Commercial Banking CEO Victor Lee Meng Teck said with SMEs currently contributing to more than one-third of Malaysia’s GDP, banks have a responsibility to grow this sector and to support the National Entrepreneurship Policy’s objective to have SMEs contribute 50% to the GDP by 2030.
“The collaboration with PETRONAS is well-aligned with the nation’s SME agenda, as well as CIMB’s strong commitment and focus in the SME sector. We look forward to working hand-in-hand with PETRONAS to boost the growth and financial well-being of SMEs while supporting OGSE, a key sector in the Malaysian economy, under the PETRONAS Vendor Financing Programme,” he added.
CIMB will support the OGSE vendors of PETRONAS on value-chain financing with extensive Commercial Banking coverage across Peninsular Malaysia, Sabah and Sarawak. Following the exchange of the MoU, vendors of PETRONAS will have access to these financing facilities to cater to their specific needs for procurements or contracts.
CIMB joins the Vendor Financing Programme as the ninth panel bank which includes Bank Islam, Malayan Banking Berhad (Maybank), RHB Bank, HSBC Bank Malaysia Berhad, United Overseas Bank (UOB), Export-Import Bank Malaysia Berhad (EXIM), Bank Rakyat and Bank Muamalat.
PETRONAS Project Delivery and Technology Group Procurement Vice President Liza Mustapha (second from right) and CIMB Group Commercial Banking Deputy CEO Ahmad Shazli Kamarulzaman (second from left) exchanging the MoU, witnessed by CIMB Group Commercial Banking Head of MidCorp - Business Banking Yew Teik Beng (left) and PETRONAS Group Procurement Corporate Projects Head of Programme Delivery Norielim Yusoff, during the ceremony.
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