proton vendors financing scheme

ALL Proton vendors can now opt for an Islamic supply chain financing programme from CIMB Group.
The financial services provider signed a memorandum of understanding (MOU) with Proton on the financing programme at the Proton Centre of Excellence in Shah Alam last Tuesday.
A similar MOU was also signed between CIMB Group and Perodua recently.
The objective of the financing programme is to enable vendors to have better cash flow for their operations by closing the working capital gap from the cost of procuring raw materials to the final stage of payments by the automakers.
The Islamic supply chain financing is divided into pre- and post-delivery financing.
Through pre-delivery financing, vendors can obtain financing based on monthly order value to pay for raw materials.
Subsequently, vendors can obtain post-delivery financing upon submission of invoices and documentations to the automakers for acceptance.
“We are proud to be the first financial institution to offer this syariah compliant facility to the manufacturing industry,” said CIMB Group deputy CEO (corporate and investment banking) Datuk Charon Wardini Mokhzani.
Also present at the event were CIMB Group chief executive Datuk Seri Nazir Razak and CIMB Islamic Bank CEO Badlisyah Abdul Ghani as well as Proton Holdings Bhd group managing director Datuk Syed Zainal Abidin Syed Mohamed Tahir, chief financial officer Azhar Othman and director of group procurement Klaus Liske.
Syed Zainal pointed out that the supply chain financing programme would be critical in the company’s aspirations to become a competitive global automaker.
“Vehicle build quality is also heavily reliant on the components supplied by vendors,” said Syed Zainal.