Bank Islam, Petronas, SJPP ink MoU to help Petronas vendors

KUALA LUMPUR: Bank Islam Malaysia Bhd has signed a memorandum of understanding (MoU) with Petroliam Nasional Bhd (Petronas) and Syarikat Jaminan Pembiayaan Perniagaan Bhd (SJPP) to provide financial solution to Petronas vendors nationwide via the SME Vendor Financing Programme aimed at benefiting the local oil and gas services and equipment (OGSE) sector.
The programme is open to Malaysian SMEs which have contracts with Petronas and are in compliance with Bank Islam’s credit assessment and SJPP’s eligibility and criteria.
As at March 2018, Bank Islam has financed 1,235 SME customers with a total financing of RM2.9 billion.
As part of the initiative, SJPP, a wholly owned agency under the Ministry of Finance, will act as the credit guarantee provider. SJPP will support the programme by providing up to 70% credit guarantee to eligible OGSE SME vendors in obtaining financing facilities.
As a collaboration partner, Petronas’ role is solely to promote the financing facility to its SME vendors, as well as validate the vendors’ information and contracts.
To date, 15,780 SMEs have benefited from the various schemes under SJPP.