KUALA LUMPUR: CIMB Bank Bhd and CIMB Islamic Bank Bhd have partnered with Credit Guarantee Corporation Malaysian Bhd (CGC) to offer an additional RM1.5 billion for small and medium sized enterprises (SMEs) through CGC's portfolio guarantee (PG) scheme.
With this new funding, the bank's total working capital financing for SMEs increases to RM6.5 billion, allowing for greater support in areas such as environmental, social, and governance (ESG) initiatives, digitalisation, and investments in strategic technology.
According to CIMB, 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.
CIMB noted that with this, it is on track to exceed the RM50 billion commitment that the bank has made to the sector.
CIMB Group Holdings Bhd group chief executive officer Novan Amirudin said CIMB reaffirms its support for the growth of SMEs in Malaysia and has plans to increase its current market share of 11 per cent, reflecting its leadership in the sector.
"The 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," he noted.
Meanwhile, CGC president and chief executive officer Datuk Mohd Zamree Mohd Ishak said over the past decade, both CIMB and CGC have forged a strong partnership, delivering impactful financial solutions to Malaysian SMEs.
He added that since the launch of a RM100 million PG on Oct 1, 2014, they have achieved a remarkable milestone of RM5.22 billion in financing across 36 tranches.
CIMB also took the opportunity to show its appreciation to its valued SME clients who have benefitted from the bank's roster of programmes and products.
In addition to financing, CIMB has also undertaken educational and enabling programmes as part of its financial inclusion efforts, providing guidance on financial planning, marketing strategies, technological advancements, and compliance requirements.
This is to assist SMEs in becoming more competitive, adaptable, and resilient in the dynamic business environment.