UOB Malaysia and Pengurusan Aset Air Berhad have introduced a Vendor Financing Programme aimed at improving financing access for suppliers and vendors across PAAB’s supply chain ecosystem. In line with the launch the Bank is providing financing for 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.
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.
