Dato' Mohamed Ross Mohd Din, Chairman, CIMB Islamic Bank Berhad (third right) and Choong Tuck Oon, Director, Credit Guarantee Corporation Malaysia Berhad (CGC) (third left) with (R-L) Ahmad Shazli Kamarulzaman, Deputy CEO, Group Commercial Banking, CIMB Group; Rafe Haneef, CEO, Group Islamic Banking, CIMB Group; KJ Balan, Head, SME Banking Malaysia, Group Commercial Banking, CIMB Bank; Leong Weng Choong, Chief Business Officer, CGC; Datuk Mohd Zamree Mohd Ishak, President/CEO, CGC and Rahim Raduan, Chief Corporate Officer, CGC at the signing ceremony of the strategic partnership between CIMB and CGC to provide SMEs access to RM2 billion in financing


KUALA LUMPUR, April 26 (Bernama) -- CIMB Group, through its entities CIMB Bank Berhad (“CIMB Bank”) and CIMB Islamic Bank Berhad (“CIMB Islamic”) have entered into a strategic partnership with Credit Guarantee Corporation Malaysia Berhad (“CGC”) to provide small and medium enterprises (“SMEs”) access to RM2 billion in financing through CGC’s Portfolio Guarantee-i scheme.

The strategic partnership was signed by KJ Balan, Head, SME Banking Malaysia, Group Commercial Banking, CIMB Bank and Leong Weng Choong, Chief Business Officer of CGC, witnessed by Dato' Mohamed Ross Mohd Din, Chairman of CIMB Islamic Bank Berhad; Rafe Haneef, CEO, Group Islamic Banking, CIMB Group; Ahmad Shazli Kamarulzaman, Deputy CEO, Group Commercial Banking, CIMB Group; Choong Tuck Oon, Director, CGC, Datuk Mohd Zamree Mohd Ishak, President/CEO, CGC and Rahim Raduan, Chief Corporate Officer, CGC.

This financing scheme will see CIMB Bank and CIMB Islamic disburse up to RM2 billion through Portfolio Guarantee-i, an Islamic working capital financing where 70% of the loan amount is guaranteed by CGC, without collateral. Financing amount is up to RM1 million per customer, with maximum tenure of seven years.

Victor Lee Meng Teck, CEO of Group Commercial Banking, CIMB Group, said, “We’re pleased to partner with CGC in nation building as SMEs are projected to contribute 41% to Malaysia’s GDP by 2020. CIMB is also committed to support the SME industry not only in Malaysia, but also across ASEAN, powered by CIMB’s 800 branches and 2,000 relationship managers. In line with Forward23, CIMB’s next mid-term growth plan, our refocused proposition includes an investment of more than RM300 million in the next five years to strengthen our end-to-end tech-driven SME banking solutions to help transform our customers’ business.”

Datuk Mohd Zamree Mohd Ishak, President / CEO of CGC, said, “I am pleased to share that over the last six years, both CIMB and CGC have successfully launched 13 Portfolio Guarantee Schemes totalling RM1.4 billion, benefiting over 2,000 SMEs.”

CIMB Bank recently announced its commitment to disburse at least RM15 billion in the next two years to help 100,000 SMEs in Malaysia, particularly for financing 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 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.

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.

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 March 2019. 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 RM49.3 billion as at 31 March 2019. The Group has over 36,000 employees located in 16 countries.

About Credit Guarantee Corporation Malaysia Berhad

Credit Guarantee Corporation Malaysia Berhad (CGC) was established on 5 July 1972. It is 78.65% owned by Bank Negara Malaysia and 21.35% by the commercial banks in Malaysia. CGC aims to assist SMEs with inadequate or without collateral and track record to obtain credit facilities from financial institutions by providing guarantee cover on such facilities. CGC has availed over 460,000 guarantees and financing to SMEs valued over RM70 billion since its establishment.

In addition, CGC provides credit information and credit rating services through its subsidiary Credit Bureau Malaysia. The Bureau enables CGC to assist SMEs build credit history and track record to enhance their credibility and bankability. Through this, the SMEs will be able to secure financing on their own merit and at reasonable cost. In February 2018, CGC introduced imSME, Malaysia’s first online SME financing/loan referral platform. imSME serves as an alternative channel for SMEs to find financing products. At different stages of their business developments, SMEs will be guided to legitimate and authorised channels to source for their business financing needs.

CGC also manages the Bumiputera Entrepreneur Project Fund (TPUB-i) with a total allocation of RM300 million. To date, CGC managed a total of 45 guarantee and financing schemes including 16 government-backed schemes. Currently, seventeen (17) Commercial Banks, fifteen (15) Islamic Banks, and seven (7) Development Financial Institutions (DFIs) are participating in CGC’s guarantee schemes in providing financing to customers through a wide network of more than 2,600 branches nationwide.

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

Name: Mohana Arumugam
Vice President,
Corporate Communications
Credit Guarantee Corporation Malaysia Berhad
Tel: +6017-237-6366
Email: mohana.arumugam@cgc.com.my

--BERNAMA