Synar Setara Resources managing director Azhar Jemani (right) and Cahaya Objektif managing director Yusoff Abu Bakar have seen improvement in their operations and growth in businesses since joining UEM Edgenta’s Vendor Development Programme. – LOW BOON TAT/The Star
SMALL and medium-size enterprises (SMEs) have been struggling to stay afloat amid the economic downturn caused by the Covid-19 pandemic.
Earlier this year, Entrepreneur and Cooperatives Development Minister Datuk Ewon Benedick revealed that the pandemic took a heavy toll on businesses – forcing over 176,000 entrepreneurs nationwide to shutter operations between 2020 and 2022.
Those that managed to stay in business did so by implementing measures which included cost or pay cuts.
Yet, Synar Setara Resources Sdn Bhd managed to keep operations running through tough times without having to cut workers’ wages – thanks to empowerment and guidance from the Vendor Development Programme (VDP) conducted by UEM Edgenta Berhad, a wholly-owned subsidiary of UEM Group Berhad.
Noting that his small private limited company would not have pulled through without UEM Edgenta’s help, Synar Setara Resources managing director Azhar Jemani is thankful to be part of the VDP since 2021.
“In these three years, the VDP provided us with the training we never thought we needed.
“UEM Edgenta representatives came to monitor and assess us, pointed out room for improvement, and guided us step by step to help us enhance our business.
“This gave us confidence, and helped us find our standing in the marketplace – leading us to be bolder in making effective decisions which included diversifying the business, which was something we would not have considered or dared to do before.
“We began thinking and operating like government-linked companies (GLCs) and wanted to leave a legacy, as opposed to just seeking more business and money.”
Azhar says that UEM Edgenta’s VDP inspired him to do the same for aspiring industry professionals.
“Synar Setara Resources began to up our game in technical and vocational education and training (TVET) by providing a training centre for TVET programmes, increasing internships as well as free training for students to lend support to the industry as part of our corporate social responsibility.”
Among the best practices that Synar Setara Resources adopted from UEM Edgenta is implementation of SWOT (strengths, weaknesses, opportunities, and threats) analysis for business health measurement, installing improved accounting and HR software to enable better strategic decisions, adoption of technology, and organisational restructuring which inspired career development growth.
“We have seen sales increase by 10% since joining the VDP,” says Azhar.
Set up in 2008, Synar Setara Resources began providing services to UEM Edgenta. The services include repair and maintenance of air conditioning systems, interior building designs, renovation works, and, fitting and designing of monitoring and evaluation technologies for healthcare and medical applications.
In concurrence with Azhar, Cahaya Objektif Sdn Bhd managing director Yusoff Abu Bakar says the VDP helped his company implement smart practices which enhance operations, in addition to expanding strategies.
“UEM Edgenta identified cost-saving opportunities by streamlining operations, reducing wastes and optimising supply chains.
“We also transformed into a better organisation through improved data collection by deploying various tools and software to improve on service delivery, especially after identifying the root cause of problem areas,” says Yusoff, adding that the company has even begun to align its operations with environmental, social and governance (ESG) standards.
Cahaya Objektif has been undertaking general construction, cleaning and maintenance services for UEM Edgenta since its inception in 1993.
Relatively unknown then, the company’s reputation and business increased after joining VDP.
“I was a nobody, a zero. I had no direction, except to make more money and generate more business. No one knew about the company.
“But this programme educated us, which led to business development and an increase in business.
“Cahaya Objektif was UEM’s subcontractor since 1995. We started with a RM25,000 project capital; now we are at RM1mil. I was lucky enough to be selected to be part of the VDP,” he says.
According to Yusoff, the VDP develops good synergy between the UEM Group and vendors.
“Other SMEs should join the VDP if given the chance. If you are unable to secure a spot in the VDP, do take part in other programmes conducted by other firms. It can really motivate and push your company to achieve more.
“Joining VDP has made me realise that the company is capable of expanding in South-East Asia – something I didn’t dare to think about prior to the VDP,” he says.
Uplifting vendors
Vendors provide goods and services that are critical to one’s business. They can help save money for the organisation regardless of size or function, as well as reduce unforeseen complications that may arise.
Recognising this, UEM Group through its subsidiaries set up the Vendor Development Programme which provides support to bumiputra vendors in various areas including business development, financial management, and technical competencies.
As part of the company’s long-term commitment to nurture the capabilities and capacity of bumiputra vendors, VDP’s goal is to prepare them to adapt to the dynamic business landscape and explore opportunities beyond the walls of the UEM Group of companies.
The right support system for bumiputra vendors can generate truly global players, says UEM Group managing director Datuk Mohd Izani Ghani.
“We have long been supportive of bumiputra vendors. We provide not only business opportunities, but also hold them to the highest standards of performance like business excellence initiative.
“We help them build their competencies organically – enabling them to move from the relatively lower value areas of the supply chain such as planning, design and maintenance to the relatively higher value areas such as financial management, human resource, procurement, supply, construction and development,” he says.
In 2022, UEM Edgenta outsourced 47% of its total contracts to 817 of its bumiputra vendors, exceeding its own target of 35% as well as the government’s target of 30%.
The UEM Edgenta Bumi VDP (BVDP) was derived from the government’s bumiputra empowerment agenda, which aims to elevate local entrepreneurial communities with training modules designed in-house to help underserved bumiputra businesses meet its governance and policy requirements to participate competitively in local and global markets.
Additionally, UEM Edgenta had in 2022 collaborated with HSBC Amanah Malaysia Berhad to develop its shariah-compliant supplier financing programme.
The first in Asia, this programme offers shariah-based financing facilities to vendors. It is aimed at strengthening the BVDP in Malaysia and supporting micro, small and medium enterprise (MSME) suppliers in obtaining very low financing rates and easy financing.
This programme also provides MSME with the necessary cash flow and working capital to finance their day-to-day operations, thus enabling them to grow into larger companies.
