RAM Credit Information Sdn Bhd (RAMCI) has inked a Memorandum of Understanding with Selangor and Federal Territory Engineering Motor Parts Traders Association (EMPTA) members, to mark the collaboration on a common framework to protect and enhance the welfare. 

With this agreement, RAMCI will now provide EMPTA members with critical business and credit information via RAMCI’s Credit Track, a web-based online system accessible 24/7, to assist them to effectively manage their credit risk. 

At the same time, the RAMCI Trade Bureau, an independent neutral collaborative platform, will serve as a channel for these automobile parts and components companies to share their customers’ payment behaviour on a reciprocity principle.

“With the sharing of overall payment information, EMPTA members benefit from a more holistic view of their customers’ payment history as well as how they pay other trade creditors. 

“Their credit decisions will be based not just on the negative but also positive information,” said RAMCI chief executive officer, Dawn Lai.

In addition, Lai said, the RAMCI Trade Bureau functions as an alternative debt recovery platform to deter defaulted companies from seeking new credit lines from other trade suppliers or credit grantors.

“Overall, RAMCI believes this collaboration augurs well for the industry as Credit Track and Trade Bureau are the proven and effective tools to help companies and SMEs minimise the risks of potential bad debts. 

“This is evident in the strong adoption rate amongst SMEs over the past few years.

“Especially in today’s challenging business climate, there is an increasing need to look into a customer’s payment history to strengthen our members’ financial management and to help them protect their businesses from potential risks,” added Lai.  

EMPTA chairman, Law Kwan said:” We are confident that our collaboration with RAMCI will value add to our members and assist them to establish strong fundamentals in credit management.”

For both EMPTA and RAMCI, this is an important step forward in forging a greater partnership to promote a more responsible business society and improve the speed of payment collection for EMPTA members. 

“With the current economic challenges, companies will need to be vigilant in pursuing monies owed and be more careful when making decisions to extend credit to another company,” stated Lai.

EMPTA is a non-profit association formed with the prime objectives of uniting and enhancing trade among members, providing welfare and services, protecting the interest and rights of members and fulfilling social obligations. 

Currently, EMPTA has over 900 memberships ranging from manufacturers, importers and exporters, distributors, franchise holders, wholesalers and retailers.

RAMCI, a leading credit information bureau in Malaysia providing comprehensive business and credit information, has over the past decades, helped banks, financial institutions, corporations and SMEs manage their business risks when extending credits to their customers.

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