KUALA LUMPUR: Sarawak Energy Bhd has inked a memorandum of understanding (MoU) with RHB Islamic Bank Bhd, Small Medium Enterprise Development Bank Malaysia Bhd (SME Bank) and Ikhtiar Factoring Sdn Bhd to provide financing solutions for local contractors under the energy developer and power utility’s vendor financing programme.

       In a statement issued yesterday, the group said that the collaboration with the three financial institutions focuses on boosting local contractors’ financial capacity by providing better access to financing facilities as well as strengthening the vendor ecosystem and accelerating vendor transformation.

       “Support from these financial institutions will improve contractors’ working capital and cash flow for more to be eligible to participate in the procurement of Sarawak Energy’s infrastructure development projects.

       Sarawak Energy group chief executive officer Datuk Sharbini Suhaili said the strategic collaboration, which is open to all of its eligible vendors, would assist eligible vendors mitigate financial constraints when participating in Sarawak Energy’s projects.

       As such, he added that vendors will have access to comprehensive and flexible financing facilities, reinforcing their financial standing and encourage more local small medium enterprises (SMEs) to participate in its large-scale projects.

       “This is in line with our efforts to support the Sarawak government’s goal of encouraging the growth and development of local vendors, ensuring their long-term sustainability,” explained Sharbini.

       Meanwhile, RHB Islamic Bank managing director Datuk Adissadikin Ali noted that many SMEs in various industries continue to require additional assistance to manage and sustain business operations during these challenging times.

       “As such, we continue to proactively engage with our SME customers and this allows us to better understand and anticipate their needs in building business resilience, enabling us to play a more effective role in accelerating their recovery.

       “We are happy to be given this opportunity to help empower SMEs in Sarawak with access to the right banking solutions and tools - enabling them the opportunity to sharpen their skills and build resilience through joint training programmes and by co-organising seminars, roadshows, webinars, and briefings.” he added.

       On the other hand, SME Bank group president and chief executive officer Aria Putera Ismail said the collaboration would assist targeted SME contractors to resolve the issues of access to financing and liquidity in order for them to complete projects awarded by Sarawak Energy.

       “This MoU is a testament of government agencies working together with the spirit of Keluarga Malaysia to revive the SME businesses in this economic recovery stage. This collaboration also further strengthens the cooperation between SME Bank and Sarawak Energy for the development of Sarawak Energy contractors,” he added.

       Given the strategic collaborations between Sarawak Energy and financial institutions, Ikhtiar Factoring executive director Noor Roslizam Alias said it would also contribute to business growth of SMEs and in turn, improving the country’s journey to economic recovery.

       “This initiative will also open up more access for them when it comes to government or government-linked companies’ contracts.

       “This pandemic has been a challenge to our SMEs and we will continue to express our support towards their recovery in these difficult times,” he pointed out.