Perodua collaborate with CIMB to aid vendor financing
Perodua today signed a memorandum of understanding with CIMB Bank to provide vendors of its supply chain the option of attractive financing packages to better facilitate their cash flows. The two companies announced this new facility at the Memorandum of Understanding signing ceremony held earlier today.
The financing facilities on offer are divided into pre-delivery financing and post-delivery financing. Pre-delivery financing allows vendors to obtain financing for the purchase of raw materials in the manufacture of parts for Perodua, while post-delivery financing sees CIMB pay off Perodua’s vendors immediately on submission of invoices. It then falls to Perodua to pay back CIMB at a later date.
“With such a financing programme, our vendors will have better cash flow for their operations, which will hopefully translate to higher productivity and quality of work,” said Perodua MD En Aminar Rashid Salleh at the signing ceremony.
The memorandum was signed by Executive Director En Zainal Abidin Ahmad on behalf of Perodua, and CIMB Investment Bank Bhd’s Head of Regional Banking, Mr KC Kok on behalf of the CIMB Group.
As of 2009, Perodua takes its supplies from no less than 141 vendors. Over its 17-year history, the company has steadily increased the percentage of local content in its cars, from 47% when the Kancil was first launched in 1994 to 80% in the Myvi in 2005, to 90% in the Alza in 2009. The company’s expenditure in parts purchase is estimate to hit RM3.8 billion this year, compared to a mere RM200 million in 1995.
