Group provides additional financing packages of close to RM400 million to Perodua dealers and vendors
Maybank and Perodua Sdn Bhd recently signed a Memorandum of Collaboration (MoC) on providing seamless end to end integrated digital financial services for Perodua via Maybank’s M2e platform as well as offering additional financial support via financing packages worth close to RM400 million to help further expand Perodua’s business.
The agreement was inked by Rajenthiran Koru, Head Consumer Finance Maybank and JH Rozman bin Jaafar, Chief Operating Officer Perodua. The signing was witnessed by Datuk Hamirullah Boorhan, Head, Community Financial Services Maybank, Malaysia and Dato' Sri Zainal Abidin Ahmad, President & CEO Perodua at Menara Maybank.
In the MoC, Maybank via its seamless and secure M2e platform, will offer a one-stop comprehensive banking and financing products and services access across the entire supply chain to Perodua as well as its dealers and customers in Malaysia. This would cover all aspects of Perodua’s operations - from manufacturing, distribution, vendors retailing and after sales services. The collaboration will cover financial services such as Floor Stocking Facility, Direct and Blanket Hire Purchase, Credit Card Merchant facilities, Cash Management, Distributor-Supplier Financing package, MaxiPlan and Green/EV Financing.
An added benefit of the partnership is on the system integration between the Perodua Sales Operating System (PSOS) & the M2e platform which enables the automation of stock purchase by the dealers through debiting their respective Floor Stocking account and to also simultaneously facilitate the auto-reconciliation of stock payment between Perodua and the dealers on a real-time basis.
Datuk Hamirullah said “Maybank has always been cognisant on the vital role that end-to-end digitisation plays within the auto finance industry. As business processes are done online via Maybank’s M2e platform, it allows Perodua dealers to perform their businesses with agility, enhance operational efficiencies, save cost and at the same time to have an upper advantage within their marketplace.”
“With their banking and financing needs being taken care of by Maybank, we are confident that the dealers can then focus on business development and sales, leading to better overall profitability in line with our mission of Humanising Financial Services,” added Datuk Hamirullah.
On additional financing packages for Perodua, Maybank will also be offering an immediate overdraft line of RM750,000 to cater to the short term financial needs of dealers on top of the generic Floor Stocking facility which is set at a minimum limit of RM1 Million for each Perodua dealer. To support upgrades to 3S flagship stores, Maybank will also offer workshop financing programmes which is set at a minimum of RM 500,000 for each dealer, with the most affordable rates.
“In this collaboration, Maybank has committed a total funding amount of close to RM400 million by offering attractive and exclusive financing packages which aims to support Perodua’s dealers in the expansion of their business in addition to other interesting benefits for Perodua employees,” said Datuk Hamirullah.
“We see great potential in this partnership and we are targeting to increase our market share of Perodua Hire Purchase financing to exceed 30% in the year 2023 from the average of 24% achieved in the previous year. We also believe that our collaboration will be further intensified in the future as we work towards Perodua’s aspiration of realising their 2030 EV mission which is also in line with our M25+ strategy which is to become a leader of sustainability in the region,” said Datuk Hamirullah.
“It is a pleasure for us to formalise this Memorandum of Collaboration between Perodua and Maybank as this agreement will further improve our respective operations and open up many more potential areas of growth for both parties,” Perodua President and Chief Executive Officer Dato’ Sri Zainal Abidin Ahmad said.
He said that this collaboration provides a more efficient financing facility for floor stocking for Perodua’s sales operations and retail hire purchase for its customers, this collaboration also include digital adaptation of current processes and ultimately enhance the compact carmaker’s value chain.
“These improved processes would have a multiplier effect to our sales operations, especially for our 148 authorised sales dealers throughout the country as the credit facility would allow for better cash flow in their operations. This will go a long way in improving delivery time to our customers, which we are currently trying to reduce,” Dato’ Sri Zainal said.
“Maybank is in a strong position to support the growth and development of the automotive sector across the entire industry value chain with our extensive banking, financing and insurance solutions. Over the years, Maybank has seen strong growth in our Automobile Financing franchise with growth rates beyond 9% and above the industry average at 7%. What’s more, this has been achieved by maintaining superior asset quality with our impaired loans ratio among the lowest in the industry. This further signifies Maybank’s capabilities and ongoing commitments to be the leading automotive financier in Malaysia,” added Datuk Hamirullah.