About this series
Building Asia is a collection of business stories on CNA that examines the financial forces driving Asia’s position as an economic powerhouse.
PETRONAS – Powering the supply chain ecosystem was first aired on 14 November 2022 under the Building Asia with UOB series. It looks at how UOB supported PETRONAS and its suppliers with innovative vendor financing solutions, paired with the Bank’s sector expertise to strengthen existing supply chain relationships.
Mohd. Khairul Ghazali (Director, Haluan Cekap):
I used to work here as PETRONAS staff…
But now, I work as a service provider to PETRONAS.
Syaharudin Hassan (Head of Industry Shaping and Collaboration, Group Procurement, PETRONAS):
In our industry, oil and gas vendors are very important. Because you see, our vendors, mostly are small medium enterprises and they do have challenges to access fluid, intensive and fast working capital.
Ng Wei Wei (CEO, UOB Malaysia):
Given UOB's track record in banking the entire value chain, I do understand where you're coming from.
I think this is where our partnership with the Vendor Financing Programme (VFP) has been very helpful for many of your vendors, just like Haluan Cekap.
I'm really glad to see that UOB is able to provide anchors like PETRONAS, greater stability and help you build stronger relationships within your value chain.
Many of your vendors who come on board the programme, they're able to obtain working capital financing and this helps them focus on carrying out your projects in a smooth and efficient manner.
Yes, in fact the Vendor Financing Programme is to assure and ensure that our vendors are supported so that they can build their resiliency, they can be innovative and they can also grow in their business.
Ng Wei Wei:
That's why the MOU that PETRONAS and UOB signed back in February 2019, put in place a holistic Vendor Financing Programme.
Your vendors get end-to-end financing support from the bank.
It definitely gives PETRONAS the confidence that your vendors have the capability to fulfil requirements and leveraging on PETRONAS’ strong credit standing and the performance track record of your vendors, the overall supply chain financing costs gets lowered.
Ahmad Zahari Mat Shaari (Business Development Manager, Haluan Cekap):
Well for new projects, the challenge is always making sure that we have the financial capability to perform new energy or the new ventures, which the risks are unprecedented.
Mohd. Khairul Ghazali:
Basically, with this VFP and the UOB support, we can manage our cash flow in terms of the project executions.
Ahmad Zahari Mat Shaari:
It makes our lives as a vendor, much more assured for us to do business for PETRONAS.
We are very much grateful to UOB Malaysia as our vendor financing partner that truly elevates the resiliency of our vendors.
Ng Wei Wei:
I'm really delighted. UOB'S Vendor Financing Programme has provided PETRONAS with a strong base for your ecosystem to thrive.
It is for the whole ecosystem. Thank you.