PETALING JAYA: Malaysia Aviation Group (MAG) and Citi announced a US$75 million (RM306.3 million) structured trade finance facility to support MAG’s supply chain strategy and operational requirements across Asia.
By connecting suppliers across Malaysia, Singapore and China through a single financing framework, the solution is designed to improve working capital management, enhance liquidity and strengthen supply chain resilience.
The facility supports MAG’s efforts to optimise working capital across its supplier network while providing greater certainty and flexibility for strategic suppliers operating across multiple markets.
As aviation businesses continue to operate within complex international supply chains, efficient working capital management and strong supplier relationships remain critical to maintaining operational resilience and supporting long-term growth.
Developed with suppliers across multiple markets, the facility brings participating entities together under a single financing framework.
Drawing on Citi’s global network, the solution supports efficient cross-border payment flows and helps address the challenges of managing suppliers across multiple jurisdictions.
Through structured collaboration with a supplier in China, the solution required close coordination across multiple regulatory, legal and operational environments to address the unique requirements of a cross-border aviation ecosystem.
As aviation businesses continue to operate within complex international supply chains, efficient working capital management and strong supplier collaboration remain critical to ensuring operational resilience and long-term sustainability.
“With the structured trade facility in place, MAG looks forward to enhancing the cross-border payment solutions we have while further strengthening our relationship with our valued vendors across multiple markets,” said MAG acting group chief finance officer Muhammad Najmi Mansor.
Highlighting Citi’s commitment to delivering innovative solutions for clients operating across complex international supply chains, Vikram Singh, Citi country officer and banking bead, Malaysia,said, “We are pleased to support MAG with a solution tailored to the complexities of managing its regional supply chain.
“By leveraging our strong regional footprint and collaboration across Malaysia, Singapore, and China, our Services business delivered an industry-leading bespoke trade solution for the aviation sector.
“This transaction demonstrates how innovative trade finance solutions can help businesses navigate increasingly complex cross border operating environments while maintaining financial flexibility.”
By combining MAG’s operational scale with Citi’s global trade finance capabilities, the transaction highlights the power of cross-border collaboration and efficient deployment of capital in supporting supply chains linked to the aviation sector.