SME Bank and JPDC Announce Strategic Partnership to Enhance Johor Economic Landscape

Johor Bahru, 3 Apr 2024 – SME Bank, a key player in supporting small and medium enterprises (SMEs), has entered into a Memorandum of Understanding (MoU) with Johor Petroleum Development Corporation Berhad (JPDC) to foster economic growth in Johor.

SME Bank Group President/Chief Executive Officer, Datuk Wira (Dr.) Aria Putera Ismail said, “SME Bank remains committed in its dedication to delivering SMEs with financial assistance and advisory support. Since its inception, SME Bank has successfully approved over RM47 billion in financing for a total of 23,820 MSMEs, with RM560.74 million allocated specifically to entrepreneurs in Johor. We are prepared to leverage our expertise in collaboration with JPDC, the lead Federal Government agency overseeing the planning and coordination of the Pengerang Integrated Petroleum Complex (PIPC). Together, we aim to facilitate investments and enhance local participation in workforce and business resource readiness for the downstream oil and gas, petrochemical, and chemical industries within PIPC. Our goal is to foster the expansion of local businesses and entrepreneurship, benefiting not only Pengerang but also the broader region of Johor and beyond.”

“Under the MoU, both parties will collaborate on identifying and nurturing prospective vendors from Pengerang, Johor, and Malaysia, offering them guidance in business and financial management, access to funding, and other essential support services. This endeavour aims to equip local contractors with the skills and capabilities needed to thrive in the downstream oil and gas, petrochemical, and chemical industries. SME Bank anticipates providing more than RM35 million in financing to support 30 customers,” added Datuk Wira (Dr.) Aria.

Izhar Hifnei Ismail, Acting Chief Executive of JPDC says, “The Contractor Development Program (CDP) is a progression from the Skills in Oil and Gas (SOGA) Program that JPDC have been implementing in PIPC since 2013. We have provided skills and job competency training, including re-skilling and upskilling training, for almost 7,000 Malaysian manpower, with 95 percent of them successfully finding gainful employment in the downstream oil and gas, petrochemical, chemical and energy-related sectors in PIPC and other places in Malaysia.”

“Under the CDP, JPDC aims to provide small and medium-sized Malaysian contractor companies and enterprises with business management skills and competencies, to enable them to continually upgrade their capabilities and capacities, and qualify them to provide services to the downstream oil and gas, petrochemical and chemical industries not only in PIPC and Malaysia, but also at the international level,” Izhar Hifnei adds. “The thirty participants who meet the CDP criteria will be undergoing training in two batches, with the first batch of fifteen to be trained in 2024, and the second batch of fifteen to be trained in 2025.”

JPDC will nominate prospective candidates to SME Bank for evaluation and inclusion in training and coaching programs, facilitated in partnership with the Centre for Entrepreneur Development Research Sdn Bhd (CEDAR), a subsidiary of SME Bank. These programs will focus on enhancing the entrepreneurial and managerial competencies of local businesses, entrepreneurs, and contractors.

As part of the collaboration, JPDC will provide regular updates on industry developments to SME Bank, facilitating informed decision-making and strategic planning. The partnership will also extend to the scope of conferences, seminars, training sessions, workshops, and engagement sessions to further engage stakeholders and foster knowledge exchange.

Furthermore, both entities will collaborate on developing capacity-building initiatives tailored to the specific needs of Pengerang and Johor, with the ultimate goal of nurturing a pool of skilled and competent local vendors capable of meeting industry demands. The MoU signing signifies a commitment to driving socio-economic development in Pengerang and Johor, aligning with the broader national agenda of promoting inclusive growth and empowering local communities.

The MoU between SME Bank and JPDC was signed by SME Bank Group President/Chief Executive Officer, Datuk Wira (Dr.) Aria Putera Ismail and JPDC Acting Chief Executive Officer, Izhar Hifnei Ismail, in the presence of SME Bank Group Chief Corporate Strategy Officer, Datuk Dr. Mohammad Hardee Ibrahim. Izhar Hifnei later presented a letter to CEDAR’s Chief Executive Officer, Amirul Imran Ahmat, appointing CEDAR to provide customised training in business capacity building under the CDP.

SME Bank embraces strategic collaborations to cultivate additional initiatives, reaffirming its commitment to empowering MSMEs and significantly contributing to the nation's economic prosperity. For further details on SME Bank’s programs and initiatives, please visit www.smebank.com.my, SME Bank's Facebook page, or contact SME Bank’s Contact Centre at 603-26037700.