MBSB Bank to offer customised financing to MRT Corp's contractors, vendors

KUALA LUMPUR: MBSB Bank Bhd has inked a memorandum of understanding with Mass Rapid Transit Corporation Sdn Bhd (MRT Corp) to offer customised financing to MRT Corp’s contractors and vendors involved in its current and future projects.

"This financing programme is aimed at assisting Grade G1 to G7 category contractors who are involved in MRT projects and registered under the Construction Industry Development Board (CIDB) to increase their competitiveness in the open market,” the parties said in a joint statement today.

They said that the programme would include contractors for the Rapid Transit System (RTS) Link project between Johor Bahru and Singapore.

Under the programme, MBSB Bank will also provide start-up funds to 15 Bumiputera companies under the new MRT Young Entrepreneur Programme (MYEP-RTS).

According to the statement, the MYEP-RTS programme is an initiative by MRT Corp, CIDB, and Johor Centre for Construction Development to develop fresh Bumiputera graduates to become competent and successful young contractors in the industry.

"Similar MYEP programmes were organised for the first two MRT projects, namely the MRT Kajang (MYEP 1) and Putrajaya Line (MYEP 2) projects.

"The MYEP 1 saw 16 graduates forming 14 companies among them, whereas the MYEP 2 produced 54 graduates who established 24 companies among themselves,” the parties said.

They said these graduates not only completed the awarded MRT subcontracts following the completion of the MYEP initiative, but they also independently bid for projects from work package contractors and were successful in their delivery.

Additionally, MBSB Bank group chief executive officer Datuk Nor Azam M Taib said, this specially-designed Shariah-compliant financing initiative would address the financial situation of contractors and vendors, and enable them to focus on delivering their work timely and efficiently.

"We hope that MRT Corp’s contractors and vendors will find this new offering attractive and beneficial to their businesses,” he said.

MRT Corp chief executive officer Datuk Mohd Zarif Hashim said this collaboration would enhance the participation of qualified Bumiputera entrepreneurs in the construction industry.

"(The entrepreneurs will) strive to develop their competencies further to produce strong, committed and formidable players in line with industry needs.

"MBSB Bank’s commitment to providing financing to the contractors involved in MRT projects will help jumpstart activities needed to grow the economy, creating a lasting multiplier impact on the economy,” he added. - Bernama