by NURUL NAJMIN ABU BAKAR

CIMB Bank and CIMB Islamic Bank Bhd are partnering Credit Guarantee Corp (M) Bhd (CGC) to provide an additional RM1.5 billion in financing for small and medium enterprises (SMEs) under CGC’s portfolio guarantee scheme.

This raises CIMB Islamic’s total working capital financing to RM6.5 billion, aimed at driving environmental, social and governance (ESG) adoption, digitalisation and technology investments.

CIMB Bank Bhd co-CEO Ahmad Shazli Kamarulzaman said the RM6.5 billion financing with CGC is part of CIMB’s commitment to support SME development from 2019 to the end of 2024, with the bank on track to exceed its RM50 billion target for the sector.

“We have supported SMEs from their early days, like 99 Speedmart, helping it grow into a well-known brand that is now everywhere and has even gone for an IPO,” he said to the media after the signing ceremony.

Meanwhile, CIMB group CEO Novan Amirudin said the bank reaffirms its commitment to SME growth in Malaysia, aiming to grow its market share of 11%.

“The government incentives, including grants for technology adoption, innovation and market expansion, offer SMEs the opportunity to upskill, adopt ESG principles and embrace digitalisation to stay competitive and attract foreign direct investments,” he said.

CGC CEO Datuk Mohd Zamree Mohd Ishak said CIMB and CGC have built a strong partnership over the last decade, providing RM5.22 billion in financing across 36 tranches since launching a RM100 million portfolio guarantee in October 2014.