Proton and CIMB Group has signed a MoU to help the vendors.Read the full news from Bernama below.
PROTON, CIMB SIGN SUPPLY CHAIN FINANCING MOU
KUALA LUMPUR, Aug 10 — Perusahaan Otomobil Nasional Sdn Bhd (Proton) has signed a memorandum of understanding (MOU) with CIMB Group to offer syariah-compliant supply chain financing programme to Proton vendors.
Proton Holdings Bhd group managing director, Datuk Syed Zainal Abidin Syed Mohamed Tahir, said the programme was a critical component in the company’s strategy to become a competitive global car manufacturer.
“The programme aims to alleviate the cash flow burden faced by vendors by closing the working capital gap from the initial stage of procuring raw materials to the final stage of payment by the company,” he said at a joint media briefing here Tuesday.
CIMB Group corporate and investment banking deputy chief executive officer, Datuk Charon Wardini Mokhzani, said between the buying and delivery of the products, someone has to fund the capital used in producing the products and the bank would provide loans for the pre- and post-delivery processes.
“The bank has allocated over RM100 million under the programme.
“Through the pre-delivery financing, the vendors will be able to obtain financing based on monthly order value to pay for the raw materials.
“Subsequently, they will get post-delivery financing upon submission of invoices and documentations to Proton for acceptance,” he said.
The pre-delivery financing applies the Murabahah concept and the post-delivery financing the Bai al-Dayn concept.
Moving ahead, Syed Zainal Abidin said the company would launch a new model this November and a new turbo engine next year.