For contractors, securing projects is only half the battle. Maintaining cash flow while waiting for payment can be an even greater challenge.
For Syamer Zolkiflee, Managing Director of Shah Alam-based Mosaz Works Sdn Bhd, payment delays of three to six months once made running his highway maintenance business a constant struggle.
With around 80 employees and maintenance contracts covering the SUKE, DASH and SILK highways under Prolintas, the company could only sustain one or two projects at a time. Salaries were sometimes delayed, supplies had to be purchased on credit, and pursuing new tenders was difficult.
That changed when Mosaz Works joinedSelangor Advance, a Shariah-compliant supply chain financing programme powered by CapBay.
With access to cash within 48 hours of issuing an invoice, the company could focus on delivering its projects rather than worrying about cash flow.
“We used to have two big problems: maintaining our performance and our cash flow reserves. Now we only have one, which is keeping our performance strong,” said Syamer.
Since then, Mosaz Works has secured two additional highway contracts, overcome worker shortages, maintained a monthly performance rating of around 90% and reduced penalties to almost zero. The company also received a Contractor Award from the Malaysian Highway Authority (LLM), following a nomination by Prolintas.
Expanding Opportunities Through SA500
Syamer’s experience reflects a wider challenge among contractors: work may be completed, but operating expenses continue while payments remain outstanding.
Since its introduction during the COVID-19 pandemic, Selangor Advance has provided more thanRM2 billion in cumulative financing to nearly 1,500 companies, supported by an existing RM200 million revolving fund.
Building on this, the Selangor State Government has launchedSA500, an initiative aimed at reaching approximately 500 additional contractors and suppliers within the state project supply chain.
The initiative covers businesses working with the State Government, District and Land Offices, Local Authorities, State Statutory Bodies and State Government subsidiaries.
“For most contractors, the problem isn’t a lack of work, but waiting to get paid while operating costs keep running,” said Ang Xing Xian, Director of Selangor Advance.
By enabling earlier access to financing based on existing contracts or invoices, the programme helps businesses maintain operations, pay workers and pursue new opportunities.
For Syamer, the lesson is clear: contractors should explore legitimate financing options early, establish good credit records and avoid relying on private funders charging excessively high interest.
Applications for Selangor Advance are open year-round.
