KUALA LUMPUR — May 7, 2018: Bank Islam, Petronas and Syarikat Jaminan Pembiayaan Perniagaan (SJPP) will collaborate to provide a financial solution to Petronas’ vendors via the small and medium enterprises Vendor Financing Programme.
This follows the signing of a memorandum of understanding today 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 programme is 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.
The SMEs, which make up 97 per cent and 65 per cent of Malaysia’s total business establishment and employment, respectively, contribute 36 per cent to the country’s gross domestic product.
“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,” said Bank Islam Chief Executive Officer Khairul Kamarudin.
As of last March, Bank Islam had financed 1,235 SME customers for approximately RM2.9 billion.
As part of the initiative, SJPP, a wholly-owned agency under the Ministry of Finance, will act as the credit guarantee provider that provides up to 70 per cent credit guarantee to eligible OGSE SME vendors.
“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, 15,780 SMEs have benefited from various schemes under SJPP. — Bernama