PEKEMA And Funding Societies Team Up To Offer Digital Financing To Members
The Malay Vehicle Importers and Dealers Association of Malaysia (PEKEMA) have partnered with Funding Societies to facilitate accessible financing through a digital financial platform.
Funding Societies is one of the largest unified digital finance platforms for small and medium enterprises (SMEs) in Southeast Asia.
With this partnership, the two organisations will work towards finding new ways to extend financial support to PEKEMA members. This encompases vehicle dealers from all corners of Malaysia. This is in line with PEKEMA’s unwavering commitment to empower its members and elevate the prestige of the Malaysian automotive sector.
Acting President of PEKEMA, Datuk Mohamed Nazari Noordin, underlined the significant potential of this collaboration.
“One pivotal aspect of this accord is the enhanced financial support it affords to PEKEMA members, streamlining their acquisition of vehicle stock for ‘floor stocking’ purposes,” he said.
He emphasised the importance of ensuring smooth and effective business operations in the pursuit of fulfilling customer demands.
“This innovative approach is poised to invigorate automotive industry sales and provide members with the latitude to explore diverse financing models, aligning with prevailing market trends and requisites.
“The essence of this collaboration with Funding Societies harmonises with PEKEMA’s mission to fortify Malaysia’s automotive sector amid global transformation,” said Datuk Mohamed Nazari.
He added that PEKEMA’s intention to collaborate with both conventional and non-conventional financial institutions to maximise the options within the financing ecosystem.
Last year, PEKEMA has made huge contributions to the automotive sector, importing over 46,000 vehicles and retailing TIV for the current year is projected to reach 725,000 units.
PEKEMA itself has a massive network that consists of more than 340 distributors and 400 warehouses and showrooms throughout the nation.
Bridge SME financing gap for the automotive industry
Chai Kien Poon, Country Head of Funding Societies Malaysia, has also expressed enthusiasm regarding the collaboration. He highlighted the potential to introduce a groundbreaking vehicle stock financing paradigm, seamlessly integrated within PEKEMA’s vast network.
“Through synergising Funding Societies’ acumen in SME digital financing with PEKEMA’s expansive network, we are confident in our ability to positively impact vehicle dealers aiming for nationwide expansion. This aligns with our objective to bridge the SME financing gap and fuel economic growth,” Chai elaborated.
The automotive sector in Malaysia contributes a massive RM64.5 billion to the Gross Domestic Product (GDP) as at 2022. This figure is projected to rise to RM104.2 billion by 2030.
Despite this, certain parts of the industry continue to face challenges, especially with regards to financing access. The collaboration between PEKEMA and Funding Societies aims to address these issues. They hope to offer tailored financing solutions that meet the needs of emerging vehicle dealers.
This collaboration will offer a range of advantages for AP holders. This includes lower financing cost, higher financing limit, credit period up to 120 days, and streamlined application process.
“AP holders that meet the following criteria – private and public limited companies, with at least 30 percent Malaysian ownership, a minimum of one year in active business operation, and no pending legal actions or litigation – can apply for the financing,” he affirmed.
