by SHAHEERA AZNAM SHAH/ pic credit: kenanga.com.my
KENANGA Capital Islamic Sdn Bhd (KCI), a subsidiary of Kenanga Investment Bank Bhd (KIBB), has collaborated with a financing company, Bay Group Holdings Sdn Bhd, to enhance digitisation in the local factoring market.
KIBB group MD Datuk Chay Wai Leong said short-term financing solutions such as this have become a significant tool for entrepreneurs as businesses continue to grapple with the impact of the Covid-19 pandemic.
“Through this partnership with Bay, Malaysian entrepreneurs will have access to a complete and seamless digital supply chain of financing solution which will transform the way working capital is accessed in the country,” he said in a statement yesterday.
The collaboration will introduce a maiden local solution to the local factoring market through merging private and public sectors under a platform to tap into an underserved market, which is expected to grow fivefold from its current RM20 billion value.
“With KCI’s long-standing track record in supply chain financing coupled with the government’s initiatives in supporting the small and medium enterprises, the collaboration will introduce Malaysia’s first solution that will unify both the private and public sectors under one platform.
“For the first time, entrepreneurs in the country who are seeking to finance their invoices and receivables, regardless if they are from the public or private sector, will have a fully digital end-to-end online platform to access cashflow, as well as fast and peer-to-peer (P2P) financing that will unlock their ability to grow,” it said.
The partnership with Bay is expected to advance KCI’s position in the factoring market, reduce its overall operational costs as well as improve its efficiencies.
Registered and regulated by the Securities Commission of Malaysia in 2016, Bay provides innovative digital solutions through its supply chain management platform and Bay P2P financing platform.