CIMB Group and Credit Guarantee Corporation Malaysia Berhad (CGC) inked a strategic partnership to provide small and medium enterprises (SMEs) access up to RM2 billion in financing through CGC’s Portfolio Guarantee-i scheme.
Eligible SMEs able to apply for Islamic working capital financing amount is up to RM1 million per customer, with maximum tenure of seven years at CIMB Bank or CIMB Islamic Bank. CGC that guarantees and finance SMEs over RM70 billion since its establishment will provide 70% of the loan amount guarantee without any collateral.
“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,” said Victor Lee Meng Teck, CEO of Group Commercial Banking, CIMB Group.
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.”
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.
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.