PKMM-Planworth Empowers Malay Contractors with Easier Access to Working Capital
28 February 2025
KUALA LUMPUR – The Malaysian Malay Contractors Association (PKMM) has signed a Memorandum of Understanding (MoU) with Planworth Global Factoring Sdn Bhd (Planworth) to provide collateral-free alternative financing to local contractors, particularly small and medium enterprises (SMEs).
Planworth, a market leader in invoice financing and supply chain financing in Malaysia, has also expanded its operations to Singapore. The company offers reliable, flexible, and innovative financial solutions to vendors and service providers in the micro, small, and medium enterprise (MSME) sector, government-linked companies (GLCs), and the private sector across various industries.
In addition to being registered with the Ministry of Finance (MOF) and ePerolehan, Planworth provides fast financing facilities to suppliers and service providers dealing with government agencies and GLCs.
Planworth has won numerous prestigious awards, including the Enterprise 50 (E50) 2024 organized by SME Corp, and is recognized with a 4-star SME Competitiveness Rating Enhancement (SCORE) accreditation by SME Corp and MRANTI.
Through this collaboration, more than 60,000 PKMM members will gain access to financial facilities that are easier and faster compared to conventional bank loans.
PKMM President, Datuk Mohd Rosdi Ab Aziz, said the initiative aims to help contractors overcome a key challenge in the construction sector – obtaining working capital to execute projects.
“Following our study, PKMM found that Planworth offers a more flexible and effective financing alternative. Contractors can obtain early capital through invoice financing and purchase order financing, allowing them to pay suppliers directly for construction materials.
“In addition, Planworth provides working capital facilities in the form of collateral-free loans, giving contractors early access to cash. This enables them to focus on project execution without relying entirely on banks,” he told the media after the MoU signing ceremony between PKMM and Planworth.
Mohd Rosdi further explained that obtaining financing from conventional financial institutions is increasingly challenging, especially for small and medium contractors.
“Banks are more cautious in approving loans because they manage public funds. With the Planworth financing platform, the application process is easier and faster, with approval taking only one week compared to three months through banks.
“We also encourage contractors outside PKMM to consider this programme and take advantage of the financing opportunities offered. We want to ensure financial issues no longer become a major obstacle in executing construction projects,” he said.
He expressed confidence that this collaboration will positively impact the local construction industry, particularly in enhancing the competitiveness of Malay contractors and ensuring the sustainability of their businesses amid current economic challenges.
Meanwhile, Planworth CEO, Datuk Kuek Andy, said the collaboration helps accelerate contractors’ cash flow and ensures projects run smoothly without financial disruptions.
“We are committed to providing faster and more accessible financing solutions so that contractors can focus on project execution.
“We understand the key challenges faced by contractors in the construction industry, particularly in obtaining working capital. Many projects are delayed due to cash flow problems. With the financing facilities we provide, contractors can access funds in a shorter period, helping them meet project schedules more efficiently.”
Additionally, Planworth issues support letters to contractors to strengthen their financial credibility when applying for or bidding on projects. These letters are in high demand and are increasingly popular among local contractors and service providers dealing with government agencies and GLCs.
Through this strategic collaboration, PKMM and Planworth hope to empower the local construction sector and ensure contractors, especially SMEs, grow sustainably and remain competitive.
You can read the full media press release below:
