Volvo Malaysia’s financial solution for SMEs
11 October 2012, Selangor – Volvo Malaysia and Standard Chartered Bank Malaysia have formed a strategic alliance to offer a first-of-its-kind financial solution to enable small-and-medium sized (SME) enterprises in Malaysia to purchase high-quality trucks.
The partnership between the two companies was sealed by Mansoor Ahmed, Managing Director of Volvo Malaysia and Vishal Shah, General Manager, SME Banking of Standard Chartered Bank Malaysia at the Volvo Malaysia headquarters in Shah Alam recently.
For the first time in Malaysia, a commercial vehicle company and a bank joined forces to derive a total financial solution that enables the purchase of commercial vehicles to be more affordable and cost-effective in the long-term for SMEs. Although common with passenger vehicles, this tailor-made financial solution by Standard Chartered Bank Malaysia, coupled with the Total Profitability Over-Lifecycle (TPOL) consultation by Volvo Malaysia is set to make significant strides in the logistics and haulage industry.
Commenting on the financial solution initiative, Mansoor said, “With the demand for logistic services on the rise, we believe that it is important for the commercial vehicle industry to emulate some of the best practices of the consumer automotive industry. Our tie-up with Standard Chartered Bank Malaysia is a first step in this direction of providing financial support, particularly to small-and-medium sized enterprises, to own a Volvo truck as well as the transportation solutions that come packaged with our products.
“We are pleased to be the pioneers in the commercial vehicle industry to offer a comprehensive financial solution along with our TPOL consultation to logistics companies that need such services to ensure business profitability.”
According to Mansoor, the TPOL solution is about partnering with our customers and bringing to them best practices and analytics towards understanding the key components of profitability in their business by looking at investment, operational cost and revenue drivers. The TPOL solution is offered and has been tested by key Volvo customers and they have found it to be beneficial towards their business operations. It is an innovative value-added service that enables Volvo Malaysia to be engaged with their customers and map out their business to maximise profitability creating a strong win-win partnership.
“SMEs are the backbone of our country’s economy and they rely heavily on bank financing to fund their growth and business needs. This is where the financial solution will be a catalyst in providing an instrumental thrust to their business growth. As a leading global commercial vehicle company, Volvo Malaysia is committed to continually provide innovative total transport solutions to local haulage companies to meet the increasingly aggressive requirements of the market,” Mansoor further stated.
The financial solution is specially catered for Volvo Malaysia’s customers. Both Volvo Malaysia and Standard Chartered Bank Malaysia will work closely in assessing and responding to the customer’s requirements with a two-week turnaround time.
“We are honoured to partner with Volvo and assist them in financing their fleet of trucks. Standard Chartered, as the preferred financier to Volvo’s fleet of commercial vehicles, demonstrates its comparative strength in liquidity and capital; and its specialist expertise in SME Banking. We look forward to supporting Volvo in the future, towards the successful pursuit of its business strategy,” said Vishal Shah, General Manager SME Banking, Standard Chartered Bank Malaysia Berhad.
“Our Bank has the history, presence and experience to make a tangible difference in facilitating the rapid growth of the SME sector. We continue to lead the market in our ability to strongly support the business community via providing a comprehensive suite of financial solutions, from managing their working capital, aiding in their business expansion locally and beyond borders, maximizing yield on surplus business funds, managing and protecting their business from uncertainties in the Forex & commodities prices. We look forward to working with Volvo in the successful pursuit to leverage growth opportunities in Malaysia,” added Vishal.