KUALA LUMPUR: CIMB Bank Bhd (CIMB Bank) and CIMB Islamic Bank Bhd (CIMB Islamic) have allocated RM50mil for micro Small and Medium Enterprises (SME) segment.
The allocation will be disbursed via CIMB SME Micro Financing-i, an Islamic working capital with financing amount of up to RM50,000, according to a CIMB statement on Thursday.
CIMB said the banks’ support of the micro SME sector complements the government’s measure to assist the growth of SMEs in the Budget 2020.
The focus on SMEs was also in line with the government’s National Entrepreneurship Policy to have 50% of the country's GDP contributed by SMEs by 2030.
CIMB said its micro financing solution was made available via Credit Guarantee Corporation Malaysia Bhd’s (CGC) imSME platform, an online SME financing referral platform launched in 2018.
Bank Negara Malaysia mooted the imSME, which is supported by other participating banks. The online platform enables SMEs to access fast and real-time information on financing options.
SMEs can sign up for CIMB’s micro financing solution via imSME – Malaysia’s first financing/loan referral platform – at 30 CIMB branches currently.
The platform will be made available at all CIMB branches nationwide by year-end.
Victor Lee Meng Teck, CEO, group commercial banking, CIMB Group said the collaboration with CGC focused on helping micro SMEs meet their unique developmental needs by making financing more accessible.
“Our RM50mil allocation is aimed at encouraging not only the growth of micro SMEs but also entrepreneurship among the B40s to help them improve their income and livelihood.
“This is in line with CIMB’s earlier commitment to support and spur the SME segment in Malaysia by allocating RM15bil to help finance 100,000 Malaysian SMEs in the next two years,” Lee said.
Leong Weng Choong, chief business officer, CGC said SMEs accounted for majority of the business establishments in Malaysia but they were often underserved due to lack of collateral.
The CIMB SME Micro Financing-i with CGC guarantee was timely to drive the financial inclusion agenda, especially in support of micro SMEs.
Leong said the CGC and CIMB joint effort would ensure financing access for micro SMEs nationwide through imSME.
“imSME will enable micro SMEs to secure financing online, at their convenience and it is easy to use," he said.
In April 2019, CIMB and CGC teamed up to provide SMEs access to RM2bil in financing through CGC’s Portfolio Guarantee-i scheme.
Separately, CIMB Bank also recently launched the CIMB SME Renewable Energy Financing to help SMEs in Malaysia. This scheme covers 100% financing – from as low as RM20,000 and up to RM1mil – for SMEs to install solar photovoltaic systems
on their rooftops to help offset energy cost.
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