Kota Kinabalu: As Sabah positions itself as a regional hub for oil and gas, access to alternative financing will be crucial in enabling local businesses to participate in the State’s growing industrial ecosystem, said MoneySave founder and Chief Executive Officer Vincent Soh.
He explained that peer-to-peer (P2P) financing has evolved into an important complement to conventional banking, particularly for small and medium enterprises (SMEs) serving the oil and gas supply chain.
“P2P can fill the gaps that a conventional banking ecosystem can’t support enough,” he said during the Sabah Oil, Gas and Energy Conference and Exhibition, recently.
Vincent said Malaysia’s P2P financing industry is regulated by the Securities Commission Malaysia and has matured significantly since its inception. Today, more than 20 licensed platforms have collectively facilitated over RM11 billion in financing for more than 14,000 SMEs across the nation.
He highlighted that MoneySave specialises in financing businesses within the oil and gas and semiconductor supply chains, providing financing ranging from RM500,000 to RM35 million.
While banks remain the primary source of financing, Vincent said many industrial projects require funding beyond what traditional lenders are prepared to provide. These limitations often leave viable businesses without sufficient capital.
“The bank can only lend you 70pc of what you need for a project, or the bank may issue the funds two or three months later. This is where P2P financing comes in to complement the bank structure,” he said.
He cited vessel acquisitions as one example, where companies often struggle to raise the remaining down payment after securing bank financing.
“If you want to buy a vessel, the bank gives you 70pc, but you’re short 20 or 30pc. We help bridge that gap,” he said.
Beyond major capital expenditure, Vincent said alternative financing also addresses operational cash flow challenges. He shared the example of a Sabah-based marine operator purchasing fuel, noting that businesses buying on credit often pay higher prices than those purchasing in cash.
By providing short-term financing, companies are able to purchase fuel upfront, benefit from cash discounts and improve overall profitability.
“Our cost is about 1.4 to 1.6pc per month, all-in with no hidden charges,” he added.
Unlike conventional lenders, Vincent said MoneySave places less emphasis on physical collateral and instead assesses the commercial strength of businesses and their customers. He explained that collateral is optional and that payment assignments are not always mandatory.
Instead of relying solely on property or fixed assets, MoneySave evaluates the credibility of project owners and uses trade credit insurance to manage repayment risks.
He said if a large customer is considered insurable, MoneySave gains confidence that payment risks are manageable and is therefore more willing to finance SME suppliers.
He also argued that strengthening Sabah’s second, third and fourth-tier suppliers is just as important as attracting multinational corporations into the State.
“The stronger Tier 1 and Tier 2 companies are, the more likely we are to invest in the Tier 3 and Tier 4 supply chain because these are the underserved SMEs we need to service and support the state’s growth,” he said.
Vincent also called for greater flexibility in government payment assignments, arguing that allowing financiers to receive payment assignments from government contracts would significantly improve financing access for SMEs undertaking public sector projects.
He maintained that improving access to flexible financing would enable more Sabah-based businesses to participate in large-scale oil and gas developments, ensuring that local SMEs benefit alongside major investors as the state’s industrial ambitions continue to grow.
