Kuala lumpur: Bank Islam Malaysia Bhd has signed a memorandum of understanding (MoU) with Pengurusan Aset Air Bhd (PAAB) to offer RM100 million in financing to PAAB contractors in 2026. The collaboration aims to enhance access to financing and banking solutions, enabling contractors to execute awarded contracts more effectively and unlock growth potential.
According to BERNAMA News Agency, the joint statement by both companies highlighted that the MoU would facilitate financing and implementation of water-asset works. This initiative is expected to accelerate the reduction of non-revenue water and support other water-related initiatives under the 13th Malaysia Plan (13MP) and Budget 2026.
The initiatives include sustainable infrastructure investment, improved service reliability, and funding aligned with environmental, social, and governance (ESG) principles. Bank Islam’s group chief business officer of institutional banking, Sharifah Sarah Syed Mohamed Tahir, stated that the MoU reflects the bank’s commitment to national ESG priorities and growth opportunities in the water sector.
With the RM100 million targeted financing for PAAB contractors, the bank aims to play a pivotal role in financing sustainable development. The partnership promises faster and more reliable access to working capital through direct contract verification and PAAB’s assignment of payment mechanism.
Sharifah Sarah added that the collaboration enhances transparency, streamlines processes, and supports timely project delivery by ensuring efficient fund flow across the supply chain. The MoU signing ceremony was attended by Deputy Energy Transition and Water Transformation Minister Akmal Nasrullah Mohd Nasir, with the agreement signed by Bank Islam’s group CEO Datuk Mohd Muazzam Mohamed and PAAB CEO Zulkiflee Omar.
Zulkiflee expressed that the MoU represents an innovative approach to supporting vendor development by strengthening business sustainability. It aims to bridge financial gaps faced by vendors through tailored financing solutions, maintaining steady cash flow, and ensuring smooth project implementation within the stipulated timeline.