Logistics & financing scheme for SMI

Related Topics: | Logistic Industry | News Flash |

Logistics and financing scheme for SMIs

Source: The Star Publications, 08/04/00

Konsortium Logistik Bhd has launched its SMI Logistics Enterprise (SMILE) scheme to provide logistics and financing assistance to small- and medium-sized industries (SMIs).

Its strategic tie-up with Multi-Purpose Bank Bhd would enable the company to support the growth of SMIs by providing sophisticated logistics capabilities and make available special financing facilities to reduce SMIs' inventory costs, said Konsortium Logistik executive chairman and president Mirzan Mahathir.

He said that because companies ordered parts and components to prevent stock-outs, the size of their inventories tended to grow significantly. This, he added, tied up valuable working capital that could be used to finance the sale of the products.

"As a result, interest cost rises and inventory sits in the warehouse for long periods and cash-flow deteriorates," Mirzan said at the launch of SMILE in Subang yesterday.

"As we enter an era of globalisation that blurs borders and brings to our doorsteps a large number of competitors as well as potential partners, the focus will increasingly be on productivity and efficiency," he said.

Meanwhile, Multi-Purpose Bank chief executive director Ng Siek Chuan said the bank had set aside an initial RM20mil to jump start the SMILE scheme.

For eligible SMIs, the maximum interest rate under the scheme is 5% per year. The range of financing is from RM200,000 to RM1.5mil per SMI customer.

Besides the memorandum of understanding with Multi-Purpose Bank on the SMILE, Konsortium Logistik also signed an agreement with Volvo (M) Sdn Bhd on the purchase of 90 prime movers for RM22mil to enhance its haulage and trucking operations.

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