UOB Malaysia, PAAB to Strengthen Water Infrastructure Supply Chain

KUALA LUMPUR, April 6 (Bernama) -- UOB Malaysia and Pengurusan Aset Air Bhd (PAAB) today launched the UOB-PAAB Vendor Financing Programme to improve financing access for suppliers and vendors across PAAB’s supply chain ecosystem.

“Under the programme, vendors who are mostly small and medium enterprises (SMEs) are better positioned to secure financing, supporting their appointment to new projects.

“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,” it said in a statement today. 

UOB Malaysia country head of transaction banking Lucas Chew said by offering predictable, non-recourse financing and digitising key supply chain processes, the bank is 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,” he said. 

PAAB is a wholly owned company of the Minister of Finance (Incorporated), established in 2006 under the Water Services Industry Act 2006.

Meanwhile, PAAB chief financial officer Zaleha Abdul Hamid said the programme enables 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,” she said. 

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 Energy Transition and Water Transformation Ministry to improve efficiency, quality and long-term sustainability within the water services industry.

-- BERNAMA