BANK MUAMALAT ALLOCATES RM500 MLN FINANCING TO HELP INDUSTRY 4.0 VENDORS

KUALA LUMPUR, May 6 -- Bank Muamalat Malaysia Bhd is allocating RM500 million in financing facilities to assist vendors in business and technology development in line with Industry 4.0.

The financing package will be offered through a structured programme with attractive rates to facilitate the target companies' potential in line with their customers' business expansion.

To facilitate the assistance programme, the bank today inked a memorandum of understanding (MoU) on the development of an Automotive Vendor Financing Programme with Malaysia Automotive, Robotics and IoT Institute (MARii).

The MoU aims to help automotive parts and component manufacturers registered under MARii gain access to better banking facilities to improve their cash flows while doing business with car manufacturers/ original equipment manufacturers (OEMs).

Bank Muamalat chief executive officer (CEO) Khairul Kamarudin said in a joint statement that the programme is a win-win strategy for both parties, as it will allow the bank to deliver the intended outcomes of Shariah through practices and offerings that generate positive impact on the economy, community, and environment.

Meanwhile, MARii CEO Datuk Madani Sahari said the institute will identify eligible automotive vendors for various OEMs operating within the country, and serve as a referral for the vendors, as well as act as the advisory focal point to Bank Muamalat on automotive industry knowledge.

“Technology investments require long-term, data driven strategic planning to mitigate the associated risks, therefore, also requiring innovative supply chain financing packages that are attractive to both industry players and the banking sector.”

He added that the MoU signifies an important step to allow the banking sector in Malaysia to be more inclusive in the intricacies of this high technology sector.

Madani said in order to be eligible for the Automotive Vendor Financing Programme, selected vendors will undergo specific value chain development programmes organised by MARii, such as the Lean Production System (LPS) programme, Automotive Supplier Excellence Programme, CEO Growth Mindset Programme, Design Engineering Programme.

-- BERNAMA