CIMB Bank scaling-up financing for small businesses in 2019 - 2020

KUALA LUMPUR, March 28 (Bernama) -- CIMB Bank Berhad (“CIMB” or “the Bank”) has announced its commitment to disburse at least RM15 billion in the next two years to help finance 100,000 small and medium-sized enterprises (“SMEs”) in Malaysia. The Bank will focus on helping SMEs have easier access to loans below RM500,000, in support of the government’s push for an entrepreneur-friendly enabling environment to boost Malaysia’s economy.

CIMB Bank disbursed a total of RM17.8 billion in 2016-2018 to support the growth of 17,000 Malaysian SMEs by providing working capital, asset financing and trade finance. Its latest offerings include leveraging on business assets as additional working capital; and extending unsecured loans to SMEs who are awaiting their GST refund. The latter is offered at a lower interest rate, with a flexible payment period and interest servicing up to six months, to help small businesses manage their cash flow.

Tengku Dato’ Sri Zafrul Aziz, Group CEO of CIMB Group commented, “SMEs make up a major pillar of the Malaysian economy and CIMB is committed to boost the SME industry in Malaysia as well as across ASEAN by leveraging our deep expertise and extensive network within the region. In fact, in 2018, SMEs made up 62% of CIMB’s unsecured lending below RM500,000.”

“This year, in line with Forward23, our new mid-term growth plan, CIMB’s refreshed SME proposition is aimed at not just financing smaller firms and entrepreneurs, but also by helping them grow their businesses locally or beyond Malaysia’s shores. With Forward23’s focus on Tech & Data, we are also investing at least RM2 billion to strengthen the Group’s digital proposition. For SMEs, this means simpler and speedier access to our products and services, so they can really focus on running their businesses,” continued Tengku Zafrul.

SME loans contributed more than 20% to CIMB Group’s revenue in FY2018 and this is expected to grow by at least 20% in 2019 through CIMB’s refreshed SME proposition. CIMB also sees huge potential in its unique halal corridor proposition, with its strong ecosystem and regional network that could support SMEs’ venture into the export market beyond Malaysian borders. Focusing on agribusiness, cosmetics, F&B, modest fashion and pharmaceuticals, CIMB’s halal corridor proposition is poised to help SMEs access, for example, the ASEAN-China corridor with a combined customer base of 266 million Muslims. One recent example is how CIMB is helping SimplySiti, a home-grown halal cosmetics brand, to venture into Indonesia.

About CIMB Group

CIMB Group is one of ASEAN’s leading universal banking groups and is Malaysia’s second largest financial services provider, by assets. It offers consumer banking, commercial banking, investment banking, Islamic banking and asset management products and services. Headquartered in Kuala Lumpur, the Group is present in all 10 ASEAN nations (Malaysia, Indonesia, Singapore, Thailand, Cambodia, Brunei, Vietnam, Myanmar, Laos and Philippines). Beyond ASEAN, the Group has market presence in China, Hong Kong, India, Sri Lanka, Korea, the US and UK.

CIMB Group has the most extensive retail branch network in ASEAN of around 800 branches as at 31 December 2018. CIMB Group’s investment banking arm is also one of the largest Asia Pacific-based investment banks, offering amongst the most comprehensive research coverage around 600 stocks in the region.

CIMB Group operates its business through three main brand entities, CIMB Bank, CIMB Investment Bank and CIMB Islamic. CIMB Group is also the 92.5% shareholder of Bank CIMB Niaga in Indonesia, and 94.8% shareholder of CIMB Thai in Thailand.

CIMB Group is listed on Bursa Malaysia via CIMB Group Holdings Berhad. It had a market capitalisation of approximately RM54.6 billion as at 31 December 2018. The Group has over 36,000 employees located in 16 countries.

Source: CIMB Group

FOR MORE INFORMATION, PLEASE CONTACT:
Name: Suria Zainal
Head
Group Corporate Communications
CIMB Group Holdings Berhad
Tel: +603 - 2261 0638
Email: suriawati.zainal@cimb.com

--BERNAMA