CIMB Bank Berhad and CIMB Islamic Bank Berhad have launched a new financial support programme for petrol station dealers in Malaysia. The initiative, called the Petrol Station Dealer Programme, was developed with the Petroleum Dealers Association of Malaysia (PDAM) to help dealers manage financial challenges following changes to fuel subsidies.
Lawrence Loh, Co-CEO of Group Commercial and Transaction Banking at CIMB Group, said: “As the industry adapts to the new floating fuel price mechanism, CIMB remains committed to supporting Malaysia’s petrol distribution network which is predominately driven by small and medium-sized enterprises (“SMEs”), through our Petrol Station Dealer Programme. The tailored programme not only addresses immediate cash flow needs but also strengthens the petrol dealers’ long-term resilience, enabling them to thrive amid evolving market dynamics. We believe that through this holistic programme, we are not only advancing our customers’ business sustainability but reinforcing their role as a vital part of the nation’s oil and gas ecosystem.”
Dato’ Khairul Annuar Abdul Aziz, President of PDAM, added: “This is a timely and strategic initiative by CIMB that offers much-needed support to our industry. It represents a positive step towards ensuring the long-term sustainability of petrol dealers, particularly as we adjust to the changes arising from the subsidy rationalisation. By providing access to affordable working capital, this targeted programme will be able to support dealers with better cash management, while enhancing their financial resilience for the future.”
The new programme includes business financing options and cash management solutions under CIMB’s product bundling proposition. Dealers can select offerings based on their operational requirements.
One feature is Cashline-i, an unsecured standby credit facility that offers up to RM500,000 in financing depending on monthly fuel sales. This aims to help dealers handle daily cash flow needs at competitive rates. Preferential rates under CIMB’s Daily Investment Account (DIA-i) are also available so that dealers can maximise returns on operational funds.
Beyond financing and cash management tools, CIMB will provide advisory services focused on renewable energy adoption and sustainable practices. Using its Low Carbon Transition Facility-i, dealers may install solar panels at their stations for greater energy efficiency and cost savings over time.
CIMB says these measures are designed to help petrol station operators stay competitive as they adapt to recent policy changes affecting fuel prices.
