1 October 2024
As of August 2024, CIMB is on track to exceed RM50 billion committed financing to SMEs
Kuala Lumpur: CIMB Bank and CIMB Islamic Bank (“CIMB” or “the Bank”) and Credit Guarantee Corporation Malaysian Bhd. (“CGC”) today entered into a strategic partnership to offer an additional RM1.5 billion for small and medium sized enterprises (“SMEs”) through CGC’s portfolio guarantee (“PG”) scheme, bringing the Bank’s current working capital financing to RM6.5 billion to propel SMEs with wider scopes of financing for ESG adoption, digitalization and investing in strategic technology.
The partnership was signed by Jaya Balan Kathiravalu, Head, SME Banking Malaysia, Group Commercial Banking, CIMB Bank and Sean Tan, Chief Business Officer, Credit Guarantee Corporation Malaysia Berhad, witnessed by Novan Amirudin, Group Chief Executive Officer, CIMB Group, Datuk Mohd Zamree Mohd Ishak, Chief Executive Officer, Credit Guarantee Corporation Malaysia Berhad and Lawrence Loh, Co-CEO of Group Commercial and Transactional Banking, CIMB. Others in attendance included Ahmad Shazli Kamarulzaman, Co-Chief Executive Officer, Group Commercial & Transaction Banking; and CIMB Ahmad Shariman Mohd Shariff, Chief Executive Officer, Group Islamic Banking, CIMB. The signing also marked CIMB’s decade long partnership with CGC.
The RM6.5 billion financing with CGC is part of CIMB’s overall financing commitment to support SME development since 2019 to the end of 2024. With this, CIMB is on track to exceed the RM50 billion commitment that the Bank has made to the sector.
Novan said, “CIMB reaffirms its unwavering support to the growth of SMEs in Malaysia. We have plans to grow our current market share of 11%, reflecting our leadership in the sector. The Malaysian government has provided various financing incentives as well as grants for technology adoption, innovation, market expansion and training to spark the evolution of the SME industry. The time is now for SMEs and micro-SMEs to seize the opportunity to upskill talents, adopt ESG principles, embrace automation and digitalisation to remain relevant and emerge as reliable and valuable business partners, allowing them to capitalise on the foreign direct investment (FDI) inflows and attract more FDIs to Malaysia. CIMB is pleased to continue our partnership with CGC in supporting SMEs as they continue to benefit from increased adoption of new technology, automation, research and development, as well as human capital and talent development as levers to enhancing business."
Datuk Mohd Zamree said, “Over the past decade, CIMB and CGC have forged a strong partnership, delivering impactful financial solutions to Malaysian SMEs. Since the launch of a RM100 million Portfolio Guarantee on 1 October 2014, we have achieved a remarkable milestone of RM5.22 billion in financing across 36 tranches."
The Bank also took the opportunity to show its appreciation to its valued SME clients who have benefitted from the Bank’s roster of programs and products.
In addition to financing, CIMB has also undertaken educational and enabling programs as part of the Bank’s financial inclusion efforts, providing guidance on financial planning, marketing strategies, technological advancements, and compliance requirements, to assist SMEs in becoming more competitive, adaptable, and resilient in the dynamic business environment. In helping SMEs to future-proof their businesses, CIMB empowers them to realise sustained growth through initiatives such as CIMB SMEBizReady. Additionally, CIMB MicroBizReady, iTEKAD CIMB Islamic Rider Entrepreneur Programme and Program Keusahawanan CIMB Islamic-Taylor’s are targeted to micro SMEs and B40 customers, and CIMB SME Community Outreach Programme enables greater awareness of financial solutions and partners that can help SMEs accelerate their growth. CIMB has also deployed various measures to detect and safeguard better against scams and other forms of fraud to ensure customers are protected and informed, ultimately fostering a secure banking environment.
