UOB Malaysia and PAAB launch Vendor Financing Programme to strengthen water infrastructure supply chain

(From left to right): Mr Atish Rahman, Head of Financial Institutions Group, UOB Malaysia, Mr Lucas Chew, Country Head of Transaction Banking, UOB Malaysia, Mr Andy Cheah, Country Head of Wholesale Banking, UOB Malaysia, Puan Zaleha Abdul Hamid, Chief Financial Officer, Pengurusan Aset Air Berhad (PAAB), Ir. Abdul Samad Sulaiman, Chief Operating Officer, PAAB, at the launch of the Vendor Financing Programme (VFP) between UOB Malaysia and PAAB.

KUALA LUMPUR, Malaysia, April 6 (Bernama) -- UOB Malaysia and Pengurusan Aset Air Berhad (PAAB), a wholly owned company of the Minister of Finance (Incorporated), today launched the UOB-PAAB Vendor Financing Programme (the Programme), aimed at improving financing access for suppliers and vendors across PAAB’s supply chain ecosystem. In line with the launch of the Programme, the Bank is providing financing for PAAB’s vendors participating in the Supplier-Financing Irrevocable Payment Undertaking (SF-IPU) facility.

Under the Programme, vendors who are mostly SMEs, are better positioned to secure financing, supporting their appointment to new projects. It also offers a simplified post‑shipment financing facility. Anchored on PAAB’s project payment undertaking, the Programme offers competitive, non‑recourse funding to help vendors better manage their cash flow, reduce financial constrain and maintain operational continuity.

Mr Lucas Chew, Country Head of Transaction Banking, UOB Malaysia, said, “The launch of the Vendor Financing Programme with PAAB reflects UOB Malaysia’s commitment to uplift the country’s water infrastructure ecosystem and support the suppliers and vendors who are central to delivering national water projects.

“By offering predictable, non‑recourse financing and digitising key supply chain processes, we are helping vendors manage cash flow more efficiently, shorten processing cycles and improve overall operational readiness. This will lead to faster execution, stronger supply chain resilience and a healthier ecosystem that can better support the long‑term development of Malaysia’s water infrastructure.”

Malaysia continues to prioritise the expansion and upgrading of national water infrastructure, with more than 700 water related projects rolled out under recent development plans. Reliable access to working capital and efficient financing are essential for vendors to operate smoothly, meet project timelines and support sector wide growth.

The launch of the Programme is timely as it strengthens project delivery, enhances supply chain readiness and contributes to the Government’s broader efforts under the Ministry of Energy Transition and Water Transformation (PETRA) to improve efficiency, quality and long-term sustainability within the water services industry.

Puan Zaleha Abdul Hamid, Chief Financial Officer, PAAB, said “the Programme directly strengthens PAAB’s project execution capabilities by improving the financial readiness of its vendors. We are proud to partner with UOB Malaysia on this programme, that helps our contractors, consultants and suppliers manage cash flow, handle rising costs and plan their work with greater financial certainty. The Programme enables our vendors to deliver more reliably, contributing to smoother project execution nationwide. This initiative aligns with PAAB’s commitment to providing sustainable, efficient and high quality water infrastructure for the communities we serve.”

The launch marks a key milestone in the partnership between UOB Malaysia and PAAB, reinforcing their shared commitment to supporting Malaysia’s water sector through financial innovation, operational efficiency, and ecosystem development.

SOURCE: UOB Malaysia

FOR MORE INFORMATION PLEASE CONTACT:
UOB Malaysia
Name: Averlyn Lim
Brand, Media and Communications
Tel: 018-2299 168
Email:averlyn.limsl@uob.com.my

Name: Nizam Arop
Brand, Media and Communications
Tel: 603- 2638 6304/ 6017-333 6329
Email: nizam.arop@uob.com.my

Pengurusan Aset Air Berhad
Name: Rozaifee Abu Zaharim
Head of Corporate Services Division
Tel: +60 12 329 4769
Email: rozaifee@paab.my

--BERNAMA