HSBC Bank partners Proton to aid automaker’s suppliers

by FARA AISYAH/ pic credit: HSBC

HSBC Bank Malaysia Bhd and Proton Holdings Bhd have partnered to provide support to the automotive company’s suppliers via the HSBC Supply Chain Finance (SCF) programme.

The SCF programme allows Proton’s automotive suppliers, mainly local small and medium enterprises (SMEs), to obtain early payment of the proceeds from their sales to Proton.

HSBC Malaysia CEO Stuart Milne said the bank and Proton have successfully collaborated on several initiatives for the past few years.

“This customised SCF programme represents yet another milestone for the HSBC-Proton partnership as it also involves Proton’s suppliers who would benefit from it too, particularly the local SMEs.

“With this solution, we are indeed pleased to be able to help improve the efficiency of the supply chain in the Malaysian automotive industry,” he said in a statement last week.

He added that the initiative also reinforces HSBC’s continuous support for local businesses, especially SMEs, particularly during the Covid-19 pandemic where access to working capital is vital for businesses to operate.

Milne said HSBC’s business model allows it to support a broad spectrum of customers from SMEs, to corporates and multinational corporations during these challenging times.

The SCF arrangement began during the Movement Control Order period with multiple virtual briefings and online training sessions organised by HSBC for Proton and its suppliers.

It does not only help suppliers accelerate cashflow, but also provides them with access to working capital at a cost typically lower than their traditional source of financing by leveraging Proton’s stronger credit profile.

The programme is fully digitalised in which Proton can access the programme via the HSBC’s SCF platform, upload invoices and authorise payments.

Additionally, HSBC has put together a simplified supplier onboarding process to extend support to more suppliers within a shorter period, which would result in increased sustainability and lowered cost along the supply chain.

Proton deputy CEO Datuk Radzaif Mohamed said the initiative is one example of how the group assists the vendor ecosystem.

“By leveraging our strength, we allow vendors access to more liquidity so that they can continue to have good cashflow and focus on their core business.

“This facility is also a recognition by a strong global financial partner of their confidence in Proton and our future,” he said.