Kuala Lumpur, 21 November 2018 – The Building Materials Distributors Association of Malaysia, (BMDAM) and RAM Credit Information Sdn Bhd (RAMCI) recently launched the ‘BMDAM Common Defaulter Database System”. This initiative was earmarked under the Memorandum of Understanding (MoU) signed between both parties in April this year to enable association members of the building materials industry to identify defaulters.
When broaching the issue earlier this year at the MoU signing, Mr. Yang Kian Lock, BMDAM’s Immediate Past President shared on the need for an effective system to promote a healthier trading environment in the current challenging economic. “As business operators, we extend trade credit and face credit collection risks which grow under trying market conditions. Therefore, there is an urgency for industry members to have a common platform to share our trade payment information.”
Commenting on RAMCI’s role, Dawn Lai, CEO of RAMCI, said “The ‘BMDAM COMMON DEFAULTER DATABASE’ works as a business referencing and networking among association members by tapping into the RAMCI Creditrack portal, a 24/7 online credit management system. The Database acts as a deterrent to prevent defaulters from getting credit facilities from other members of the association once they have defaulted someone else. In addition, association members have the option to share defaulters’ information via RAMCI’s Trade Bureau which will broadcast such trade payment behaviours to banks, financial institutions or other credit grantors.
“We are encouraged that 40% of BMDAM members have signed up with RAMCI and have started to contribute their payment records. Our immediate goal is to have at least 80% of the members to sign up and contribute by end of 2018,” added Lai.
Meanwhile, Mr. Bill Lee, Current President of BMDAM said, “Members of BMDAM will receive special ‘early warning alerts’ from RAMCI whenever someone within the industry defaults. This is a crucial and important aspect of the system. We are confident that our collaboration with RAMCI will value-add to BMDAM’s members across Peninsular Malaysia, Sabah and Sarawak. This collaboration will assist us to establish strong fundamentals in credit management, which will in the long run, help improve business efficiency, bottom-lines and business growth,” he said.
BMDAM is the national association for companies engaging in the business of supply and distribution of locally manufactured and imported building materials.