It said in a statement the collaboration will focus 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, it added.
“This strategic collaboration, which is open to all of Sarawak Energy’s eligible vendors, is a focused effort to help eligible vendors mitigate financial constraints when participating in Sarawak Energy’s projects; they will have access to comprehensive and flexible financing facilities that will reinforce their financial standing and encourage more local small medium enterprises or SMEs to participate in our large-scale projects," said Sarawak Energy group CEO Datu Sharbini.
Meanwhile, RHB Islamic Bank, SME Bank and Ikhtiar Factoring expressed said they were looking forward to help vendors bridge their funding and collateral gaps, in support of Sarawak Energy’s initiatives to encourage more local participation in the integrated power utility’s contract and procurement activities.
The signing of the MoU builds on a similar MoU that was signed in 2019 with Bank Islam Malaysia Bhd and Syarikat Jaminan Pembiayaan Perniagaan under Sarawak Energy’s Vendor Financing Programme.