CO-PUBLISHED CHAPTER

2 FinanceAsia October 2007 www.financeasia.com

Praise for CIMB Biz-Channelfrom Perodua and dealers

CIMB’s online collections and payments system has significantly improvedPerodua’s operational efficiency

Perusahaan Otomobil KeduaSdn Bhd or Perodua,Malaysia’s second automobilemanufacturer recentlyannounced that it has

achieved a record 34% market share of carsales in the country. With an impressive fleetof passenger cars comprising the Myvi,Kancil, Kelisa, Rusa and the recentlylaunched Viva, the company has steadilyincreased its car sales since 2005. Peroduawas established in 1993 and launched its firstcar, the Perodua Kancil, in late 1994.

Commenting on the success, Datuk SyedAbdull Hafiz Syed Abu Bakar, chairman ofPerodua Sales Sdn Bhd who is also themanaging director of Perodua said “with thepast year’s upward trend in the sales ofPerodua models, we are confident of selling160,000 cars by the end of 2007.” Heattributed the success to his dedicated staffand the aggressive sales campaign by thePerodua dealers. In addition, the decision bythe Perodua management to embark on ane-collection system to facilitate the paymentof vehicles from its dealers paid off with thesystem provided by the CIMB Group’s cashmanagement team.

CIMB E-PAYMENT SYSTEM INCREASES

EFFICIENCY

Recalling the decision, Datuk Syed AbdullHafiz said the management wanted to set up

Datuk Syed Abdull Hafiz

Perodua’s market share of carsales in Malaysia

34%

CO-PUBLISHED CHAPTER

www.financeasia.com October 2007 FinanceAsia 3

a more efficient system within theorganisation when liaising with its dealers.“At present we have 140 Perodua dealers and40 sales branches nationwide,” he explained.Perodua approached several financialinstitutions to provide an online collectioncum payment system to enhance operationalefficiency between Perodua’s head office andits dealers. In February 2006, CIMB cashmanagement was appointed to provide it’sonline payment system that enabled thedealers to make payments instantly afterthey have placed orders for their vehiclesfrom Perodua. “CIMB Biz-Channel is anexcellent system for both the dealers andPerodua as the transactions areinstantaneous. It also enables us to deliverour vehicles faster to the dealers as well,” saidDatuk Syed Abdull Hafiz. The system hasfacilities that include auto-update and auto-reconciliation that enables Perodua to trackrecords of orders for vehicles and paymentsmade by the dealers. “What is more amazingis that, our dealers can ensure customers’orders are confirmed as the transactions areinstantaneous,” he enthused. Dealers alsohave the convenience of using the systemanytime, anywhere, which enables them tolog in their sales targets for that period.Previously dealers ordered the vehicles viatelephone and fax while payments weremade over the counter. “After depositingtheir payments into our account at thebranches, the dealers needed to fax us thereceipts as proof of payment,” he added.

“It is a win-win situation for the dealersand Perodua and proved successful when ourdealers were able to meet the high demand

from customers for the new model, Viva,which we were able to meet due to ourincreased output capacity,” he said. CUTTING DOWN ADMINISTRATIVE

PROCESSES

CIMB’s e-payment system now enables thedealers to place orders and make paymentsonline via CIMB Biz-Channel. “We areimpressed with the capability of the CIMBcash management team which has built aB2B online settlement function into ourfinancial system using our dealer sales ordersystem.” explained Datuk Syed Abdull Hafiz.He added that the system has cut down allthe unnecessary administrative processesand has empowered the dealers to focus onselling the Perodua cars to customers.

In addition to the efficient system, DatukSyed Abdull Hafiz said the CIMB’s cashmanagement team headed by Ravi Gopal, thedirector/head of cash management, wascommitted to providing the highest servicequality to its customers. “They were willing towork with us and most importantly, they were

flexible enough to meet all our requirements,”he explained. The CIMB cash managementteam further added value to this partnershipby assisting the Perodua dealers to sign up forthis system. “To-date we have 73 dealers whoare using the CIMB Biz-Channel to make thepayments,” said Datuk Syed Abdull Hafizadding that Perodua will encourage all itsdealers to equip themselves with the systemby year end. “The process is faster and simplerwith the CIMB team conducting road showsand training for our dealers,” he said.

MANAGING CUSTOMER SATISFACTION

Datuk Syed Abdull Hafiz said Peroduaaims to meet the needs of customers. “Wecater to a cross-section of customersranging from those buying cars for the firsttime to those needing additional cars orreplacing it. Partnering with the CIMBGroup, which has innovative products andservices has enabled us to manage theexpectations of our dealers and customers,”he added. Perodua, he said, is proud to be apartner of a forward-looking organisationlike CIMB that is establishing its footprintin Southeast Asia. n

"In July 2007, FinanceAsia, Alpha Southeast Asiaand Asiamoney voted CIMB as the "Best CashManagement Bank in Malaysia" for 2007".

CONTACT

For enquiries, please e-mail at

cashmanagement@cimb.com or

contact Mr. Ravi Gopal,

director/head, CIMB’s cash

management at

ravi.gopal@cimb.com or Mr

Eugene Tan, head of sales

management at

eugene.tan@cimb.com

Ravi Gopal

“CIMB Biz-Channel is an excellent system for both Perodua and its

dealers as the transactions are instantaneous”Datuk Syed Abdull Hafiz, Perodua chairman

October 2007 Alpha Southeast Asia 37

SponSored profileAlpha Southeast Asia

RM80 million (~USD22 million) per day

– that is the staggering amount of duty

payments the Royal Malaysian Customs

(RMC) expects to collect in 2007. These

figures were inconceivable without the

technological advancement, infrastructure

and expertise that we have today. With the

rapid rise in information technology, such

numbers are no longer unachievable.

The launch of Malaysia’s first ever

internet-based Customs duty payment

system, DutyNet, two years ago immensely

enhanced such payments. DutyNet, jointly

developed by Dagang Net Technologies

Sdn Bhd (Dagang Net) and the CIMB Bank

Berhad (CIMB Bank), is a result of twelve

months of research and development effort

by the two companies in collaboration

with RMC.

Home Grown for Global Market“The Dagang Net – CIMB Bank

collaboration in DutyNet produced a

homegrown Malaysian product that is set

to put Malaysia on the map of technological

advancement. As the country that entered

its 50th year of independent nationhood,

Malaysia looks to become a competitive

global player in all areas of economic

growth” said Abdul Halim Othman, Head,

Government Relationship Management,

CIMB Bank.

DutyNet has spurred interest in ASEAN,

which is now looking at individual National

Single Window (NSW) where traders from

any originating ASEAN country will be able

to make duty payments to RMC via Dagang

Net’s financial services payment gateway.

RMC has a vision of becoming a world-

class Customs administration. In this

respect, RMC’s mission it to:

• collect duties and taxes efficiently

• promote the development of trade

and industrial sectors through

continuous Customs facilitations

• enhance legal compliance, safeguard

economic, social and security

interests.

This requires continuous promotion,

upgrading of products and services to

increase efficiency within processes as

well procedures.

Information and communications tech-

nology, particularly the internet, is an

important means for government

agencies to enhance efficiency. DutyNet

is innovative and forward-looking and is

a tool which will ensure realisation of

RMC’s full potential of excellent service.

A major upgrade from Dagang Net’s

existing Electronic Fund Transfer (EFT),

DutyNet is another value-added service

component of the entire range of MyPorts,

which is designed to further expedite

trading processes and provide overall

efficiency for the trading community.

Lifestyle Change with DutyNetCustomers, consisting of forwarding agents,

freight forwarders, importers and exporters,

are able to deploy and utilise DutyNet, in

a secured environment and are able to

access to pay Customs duties 24 hours a

day, 7 days a week from the luxury of their

office or home.

According to Yong Voon Choon, General

Manager of Dagang Net, “collaboration

by these two sophisticated Malaysian

companies aims to realize the nation’s

vision of a paperless environment and

straight through processing. Alliance

with CIMB Bank is part of Dagang Net’s

commitment to continuously leverage on

the existing infrastructure, expertise and

experience to bring additional benefits to

the trading community.”

Sharing his views, Ravi Gopal, Director/

Head, Cash Management, CIMB Investment

Bank Berhad added, “DutyNet is yet another

significant milestone for both Dagang Net

and CIMB Bank in providing the customers an

edge over their global business competition.

Convenience, flexibility, timeliness and

accuracy of duty payments will definitely

further enhance customer satisfaction.

DutyNet will drive profitable growth,

enhance competitive advantage and reduce

operational costs of customers businesses.”

He further stressed, “Transactions done

via DutyNet are processed on a real-time

basis. Goods will be cleared immediately

by RMC upon online payment at CIMB Biz-

Channel and completion of required trade-

related Customer’s documentations.”

In July 2007, Alpha Southeast Asia,

Finance Asia and Asiamoney voted CIMB

as the “Best Cash Management Bank in

Malaysia” for 2007.

dagang net – CiMB Bank CollaBoration, the 1St internet-BaSed royal MalaySian CuStoM’S duty payMent SySteM

For enquiries, please e-mail at cashmanagement@

cimb.com or contact Mr. Ravi Gopal, Director/Head,

CIMB’s Cash Management - ravi.gopal@cimb.com or

Mr. Eugene Tan, Head of Sales Management, CIMB’s

Cash Management - eugene.tan@cimb.com

For enquiries, please e-mail at *careline@dagangnet.

com or contact Ms. Rosilawati Faiz at wati@

exchange1.dagangnet.com.

Left: YongVoonChoon,GeneralManager, DagangNetTechnologiesSdnBhd

Centre: AbdulHalimOthman,Head, GovernmentRelationshipManagement, CIMBBankBerhad

Right: RaviGopal,Director/Head,Cash Management,CIMBInvestmentBank Berhad

CIMB_oct.indd 37 10/4/07 9:18:50 AM

August 2007 Alpha Southeast Asia 37

SPONSORED PROFILEAlpha Southeast Asia

Telekom Malaysia Berhad (TM) is the largest integrated telecommunication solutions provider in Malaysia and is

one of Asia’s leading communication companies with operations and interests in 13 countries. It has a diversifi ed telecommunications business in Malaysia and in the region. With an annual turnover of RM16.4 billion in 2006, TM is poised to become a strong regional player.

As a large corporate entity managing various subsidiaries and overseas networks, it is imperative that TM has a competent cash management solution in place. It is also essential for TM to have reliable online fi nancial solutions for real time processing accessibility and enhanced payment systems for its employees and vendors.

TM has appointed CIMB Group to provide specifi c cash management modules for the company in December 2006. CIMB Group has been one of TM’s bankers for many years and the relationship extends across investment banking, equity and debt advisory, corporate banking and retail banking.

It was CIMB Group’s ability to constantly innovate products and respond instantly to meet the needs of clients that enabled TM to select CIMB as a business partner for its cash management solutions. CIMB also met TM’s most important criteria, which is to partner with a progressive and dynamic fi nancial institution in domestic and regional markets.

Mr. Ravi Gopal, Director/Head, CIMB’s Cash Management (left) and Mr. Mohamad Haji Derwish, TM’s General Manager, Corporate Finance (right)

CIMB Host-to-Host Solution With the appointment, TM has embarked on CIMB’s Host-to-Host (HTH) connectivity to

perform Autopay (online) services for all its 20,000 staff salaries and statutory payments to Inland Revenue Board (IRB). It is a fast, secure and effi cient delivery channel which enables TM to upload its payment fi les to CIMB and at the same time leverage CIMB Biz-Channel, the internet banking portal, to retrieve account information any time, any where.

The process is now made simpler and TM no longer fi nds the need to deal with various banks or send diskettes containing payment fi les accompanied with written instructions. CIMB’s HTH solution has saved TM time and enhanced its operational effi ciency. In addition to salary payments, TM also uses HTH to process and pay staff claims and relevant expenses.

With the pre-authorised payment fi les feature in the system, TM now no longer needs to go through additional authorisation. Looking at the capability of CIMB’s HTH and its ability to take high transaction volumes, TM is now considering rolling this out for salary payments to all its subsidiaries within the group.

CIMB Liquidity Management System To ensure TM has an effi cient and fl exible liquidity management structure to enhance its working capital, manage risk and comply with local regulations, CIMB’s Liquidity Management System (CLMS) was adopted. It is applied for TM’s 39 Group Accounts in Phase One where CIMB provides an automated zero-balance sweep structure. This falls directly under the guidelines of the Purple Book issued by Khazanah Nasional Berhad, which is to optimize the available fl oat collection of TM under its capital effi ciency management. TM is the fi rst Government Linked Company (GLC) to pioneer this service together with CIMB.

The comprehensive CLMS offers visibility and control over TM’s liquidity positions, increasing opportunities to enhance interest earnings on surplus cash residing as idle cash balances, deploy inter-company funding more effectively and improve operating effi ciencies. CLMS enables TM to have automated overnight money market placements that can be monitored by authorised personnel. The service offers investment opportunities to maximize yields on idle balances in the accounts to assist corporate treasurers in maximising returns. TM is currently planning to include all TM’s subsidiaries’ accounts and explore inter-

company loans and interest re-allocations.

Cheque MatchingCIMB Group’s commitment to provide best of breed fi nancial services to its customers was evident when it conducted a complete process mapping exercise with TM’s retail business. It offered TM its cheque matching services. This expedites the current manual cheque collection and clearing process. Under this initiative, the process is focused on shortening the collection cycle, timely updating of collections, ease A/R reconciliation. In addition CIMB will also provide images of the cheques and enhanced exception management reporting for customer service enhancement.

CIMB Biz-Channel As the fi rst domestic bank to offer internet banking services for Cash Management services, CIMB Biz-Channel has become an essential tool for TM to conduct its various online banking transactions. Amongst others, CIMB Biz-Channel offers a fully integrated and complete Cash Management service with the following core components:

• Account Management • Accounts Payables Management • Accounts Receivables Management • Liquidity Management

CIMB Cash Management Team TM acknowledges CIMB’s commitment in providing excellent service for its clients. CIMB has a dedicated Cash Management advisory team focusing on innovating and providing solutions to TM and other corporates including SMEs. In July 2007, Alpha Southeast Asia, Finance Asia and Asiamoney voted CIMB as the “Best Cash Management Bank in Malaysia” for 2007.

TM is pleased to partner with CIMB’s Cash Management Team in its pursuit for excellence in managing the company’s fi nancial resources.

TM ENHANCES OPERATIONS WITH CIMB’S CASHMANAGEMENT SOLUTIONS

For enquiries, please e-mail at cashmanagement@

cimb.com or contact Mr. Ravi Gopal, Director/Head,

CIMB’s Cash Management at ravi.gopal@cimb.com

or Mr. Eugene Tan, Head of Sales Management, CIMB’s

Cash Management at eugene.tan@cimb.com

CIMB.indd 37CIMB.indd 37 8/9/07 3:06:22 PM8/9/07 3:06:22 PM