cash flow


Amazon now second most valuable US-listed company, tops Alphabet

NEW YORK, March 21 — became the second most valuable publicly listed US company yesterday, surpassing Google parent Alphabet Inc for the first time. Amazon shares finished up 2.69 per cent at US$1,586.51 (RM4743.17), for a market…

Budgeting basics: Plan, follow and track your money

KUCHING: In financial planning, it is important to prepare a budget. Living according to a budget requires a lot of discipline but it helps you to live within your monthly income Keep aside money or savings. To reach your financial goals, prepare for financial emergencies and develop good habits, it is important to budget with […]

Ping An Insurance annual profit soars 43pct on life insurance sales

SHANGHAI, March 20 — Ping An today posted a forecast-beating 43 per cent jump in annual net profit, boosted by strong growth in its life insurance business. The firm navigated an intensifying crackdown on risk in the financial sector by…

New MREIT rules to provide more growth

KUCHING: The Securities Commission Malaysia’s (SC) new guidelines on listed Malaysian Real Estate Investment Trusts (MREITs) are expected to be mildly positive by providing more growth opportunities. New guidelines for MREITs were put forth by the SC last Thursday (March 15) with its main amendments being listed REITs are now able to undertake greenfield development […]

Shares in Britain’s Micro Focus halve after sales warning and CEO departure

LONDON, March 19 — Micro Focus International lost more than half of its value today after Britain’s leading software company ditched its CEO and cut its revenue outlook due to problems integrating assets from Hewlett Packard Enterprise. The…

Mavcom’s tariff key driver of MAHB’s credit profile, says Moody’s

KUALA LUMPUR, March 19 — Malaysian Aviation Commission’s (Mavcom) final decision over the new tariff setting rules for airports in Malaysia will be a key driver of Malaysia Airports Holdings Bhd’s (MAHB) credit profile over the next two to…

Qu Exchange brings back the barter system

PETALING JAYA: Homegrown Qu Exchange, an app that brings back the barter system of yesteryears, is aimed at bridging the financing gap and easing financial cash flow faced by small and medium enterprises (SMEs).

The app enables SMEs to pledge their products/services in exchange for other desired products/services.

In a recent interview with SunBiz, its founder Wayne Lim said the financing gap for SMEs has been widening in recent years due to lack of funding sources. The business environment is getting even tougher as delayed payment is generally a common issue faced by businesses.

Last year, Bank Negara Malaysia said there was a RM21.8 billion gap in financing for SMEs.

“Since we can’t find more money to help the SMEs, why don’t we just look at their collection problem…Businesses only get paid three months after they provide the services. This is why they need funding,” he said.

This gave birth to Qu Exchange last September, and the platform went live a month later. The word “Qu” is derived from a Mandarin character which means take/obtain.

Currently, a total of 1,700 companies across various industries have registered with the platform with outstanding products/services worth of RM140 million. Since its launch, some RM3 million worth of products/services have been transacted.

SMEs can secure instant trade points, known as “Qu points” by pledging their own products or services on the platform. The points are transferable but no cash-out is allowed to avoid companies taking advantages from point trading.

“We don’t want speculation, we only want these points to be used by the SMEs to buy and supply products and services to each other.

As most businesses would have excess in products and services, he said the platform will provide a good opportunity for them to look for more potential customers. However, products/services that are too “niche” will not be accepted given the difficulty to secure buyers.

The maximum amount of products/services that can be pledged is 10% of annual turnover. A company can only start a second pledge if it delivers the products/services during the first pledge.

Credit checks on participants are conducted together with RAM Credit Information Sdn Bhd (RAMCI), according to Lim, who revealed that the approval rate is almost 100% thus far.

“Our job is not to make the application more stringent, but to ease the difficulty of doing business.”

The exchange does not charge any transaction fee, but a 3% one-off facilitating fee does apply to the first pledge. Of the 3% facilitating fee charged, 1% will be retained as reserves in the event of defaults.

The exchange will be audited by Deloitte to ensure that each point is backed by an equal amount of products and services pledged. The company is also in talks with a few insurers to insure the Qu points.

Looking ahead, the company is looking to expand into the Asean, China and Hong Kong markets in the near future.

Lim said the initial investment cost for Qu Exchange is RM2.5 million and an additional RM10 million is needed for its expansion plan as well as the advancement of technology going forward.

The company is targeting to have 10% of the SMEs in the region registered with Qu Exchange within the next five years.

“There are one million SMEs in Malaysia and the target translates into RM100,000 customers from Malaysia alone.”

Slowly revving into the new year

  Slow, flat and sluggish — those were the words analysts used to describe the auto sector’s start in 2018, with the Malaysian Automotive Association (MAA) reporting that sales volume in January 2018 was at 44,575 units — 10,154 units lower than the month before. In fact, the 19 per cent decline in total industry […]

Spring cleaning your financial life

When was the last time you did a thorough spring clean in your house? Perhaps just recently before the Lunar New Year? Well, at least the Lunar New Year gives us a reason to clear our clutter once a year. A clutter-free home gives you a sense of well-being and clarity. The same goes with […]