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On 27 November the Monitor ERP System’s Malaysian subsidiary landed yet another milestone for 2019 by entering into a Memorandum of Understanding with OCBC bank. This new partnership will enable lending support to SMEs wishing to purchase the Swedish cutting-edge ERP system for manufacturing.

“Financing of software is, as we all know, very rare. So we do hope that with this initiative we will be able to make it easier for the SMEs to better prepare themselves for the competitive future to come,” said Monitor’s Managing Director Daniel Häggmark at the MoU signing ceremony.

YAB Chow KonYeow, the Chief Minister of Penang described this new MoU as an initiative undertaken by FMM (Federation of Malaysian Manufacturers) Penang – not only to assist FMM members in the SME sector but all SMEs in the state and even in the country.

“I understand that Monitor ERP System has a long and committed collaboration with the Federation of Malaysian Manufacturers. I believe that Monitor’s partnership with OECB bank to provide customised financing to the local SMEs to purchase the proprietary Monitor ERP system is a great initiative for the local SMEs. For SMEs cost is a very sensitive issue and they have to be prudent about costs. By initiating this partnership I believe it will help the SMEs to take the needed steps forward,” he said.

“Penang’s thriving industry would not have been possible with the robust supply chain, which is supported by more than 3,000 SMEs in Penang alone, so you’re looking at very big numbers and how many of these SMEs have a working system to help them? Maybe 15 per cent. We’re still looking at a very big number of SMEs to embark on this journey of improving the management of their business,” continued the Chief Minister.

“SMEs are vendors and suppliers to our 300 MNCs’ [multinational corporations] operating in Penang. So as MNCs have to upgrade themselves to meet Industry 4.0 they expect SMEs to do likewise; if not they will not be able to support the MNCs’ operation. It has now become a necessity, not a choice for SMEs to upgrade themselves – and a system like ERP software will definitely help them to meet the challenges.”

“So I think further collaboration between Monitor ERP System and local manufacturers can further strengthen Penang’s competitiveness as a global manufacturing hub. When we go out to attract investment we can say that SMEs have ERP software to help them to meet your needs. This will definitely be an attractive proposition for Penang as we attract investment here. I hope this initiative will give the extra boost to assist SMEs in Penang to transition towards Industry 4.0.”

Daniel Häggmark had the same ambition: “I want to express this: our only intention with this partnership is to help the SMEs become more competitive. Anyone, and then I mean anyone, that can contribute and help the SMEs should do so. Why? Because it will benefit us all. The more our SMEs can grow, can compete on a global market, the more it will benefit everyone. SMEs are the backbone of our economy, both in the state of Penang and in Malaysia.”

“We are very proud of this partnership and we are really looking forward to working closely with OCBC on the occasions where our customers need financial support in order to become more competitive. We feel very honoured that OCBC chose to work with us and we would like to thank you for the focus that you put on the SMEs,” he continued.

“Monitor has built up a very strong financial position after being market leader in Sweden for many years. That in combination with a great track record of successful implementations here in Malaysia I believe gave OCBC the trust and security they need before entering this partnership.”

The MD also outlined Monitor ERP System’s own track record, going back over 45 years, in contributing to the success of SMEs with manufacturing in Sweden as we well as in Asia.

“From day one Monitor ERP System worked with manufacturing SMEs, every day. We have built a solution that 40% of the SMEs in Sweden are using to run their businesses, complete business, from sales order, purchase orders, warehouse and logistics, production planning and shop floor all the way to finance.”

“For those who don’t know, an ERP System is the heart and lungs of an organisation. In an era of the 4th industrial revolution, where integrations between new technologies and automations are served at the breakfast table, you’d better be prepared and have full control of our processes – not only production processes but all your administrative processes as well. This is where the ERP system is a necessity. If you put in new technologies supposed to help you to produce faster and with better quality, but you don’t have full control of our whole supply chain and warehouse, then I can guarantee that you will not see any positive changes on your bottom line. Most probably it will give the opposite effect. SMEs in Sweden and Germany have used ERP systems going back many decades. They have absolute control of all their processes. In Malaysia around 20 per cent are using such a system. So before companies here start to look for all the new available technologies and solutions, I would strongly recommend to build aproper and solid foundation first. And here the ERP system plays a very important role.”

“Last but not least I look forward to the partnership between the business community and the state government to continue realising the Penang 2030 Vision. We have been talking about the state’s persistent emphasis of advanced readiness of the manufacturing industry for the digital age and Penang can definitely be a role model that inspires the nation in modernising the country’s manufacturing industry,” ended YAB Chow KonYeow.

Source: https://scandasia.com/unique-monitor-erp-system-malaysia-ocbc-bank-mou-supporting-smes/