26 September 2022

Collaborations with SJPP and CGC provide pivotal financing and guarantee schemes for SMEs to capitalise on opportunities post pandemic


Kuala Lumpur: CIMB Bank Berhad and CIMB Islamic Bank Berhad (collectively “CIMB” or “the Bank”) have announced their continued commitment to support and spur the recovery of the small and medium enterprise (“SME”) businesses through RM30 billion in financing by 2024.


The commitment was announced at a signing ceremony to mark the collaboration between CIMB, Syarikat Jaminan Pembiayaan Perniagaan Berhad (“SJPP”) and Credit Guarantee Corporation Malaysia Berhad (“CGC”). This is to mobilise financing, as well as guarantee schemes, that will spur the acceleration of SME growth as businesses continue to take advantage of the opportunities post pandemic, in tandem with the economic recovery momentum.


The RM30 billion commitment also includes SME financing which will be guaranteed by both SJPP and CGC, such as:


  • CIMB-CGC Financing Programme
  • Low Carbon Transition Facility (“LCTF”)
  • PEMULIH Government Guarantee Scheme (“PGGS”)


Signing on behalf of CIMB was Victor Lee Meng Teck, Chief Executive Officer of Group Commercial Banking, CIMB Group, while Azlan Mohd Agel, Senior General Manager of SJPP, and Leong Weng Choong, Chief Business Officer of CGC represented their organisations respectively. The ceremony was witnessed by YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of Finance; Dato’ Abdul Rahman Ahmad, Group Chief Executive Officer of CIMB Group; Dato’ Mohammed Hussein, Chairman of CGC; and Chen Yin Heng, Principal Officer of SJPP.


YB Senator Tengku Datuk Seri Utama Zafrul said, “The Government will continue to provide provisions for the guaranteed schemes targeted at MSMEs to help them gain easy access to financing facilities. The support from the Government is implemented through the strategic collaborations with agencies such as CGC and SJPP, as well as local banks. This has enabled all MSMEs, including those with inadequate collateral and no financial track record to obtain holistic financial support at competitive rates. This ensures the resilience of the MSMEs and contribution to the national recovery efforts, which has recorded a GDP growth of 8.9% for the second quarter of 2022. The joint initiative will be continued throughout Budget 2023 in empowering the MSMEs to remain resilient and continue to grow."


The commitment marks another step forward in CIMB’s ongoing efforts at being a committed partner for the SMEs throughout their growth journey. Prior to the COVID-19 pandemic, CIMB had successfully achieved its target of disbursing RM15 billion in financing to support SMEs between 2019-2020.


Dato’ Abdul Rahman Ahmad, Group Chief Executive Officer of CIMB Group said, “We continue enhancing support to all of our customers including SMEs and the newly committed RM30 billion in SME financing over the next two years, reinforces our efforts for this important economic group. We are committed to playing a role as a partner to our SME customers and charting their next phase of growth post pandemic. As a purpose-driven organisation, we are pleased to collaborate with SJPP and CGC in aiding the acceleration of economic activity with a set of guarantee schemes offered to businesses in order to continue to innovate and grow further.


Chen Yin Heng said, “SJPP continues the Government’s mission to foster the growth of SMEs through enabling their ability to gain access to financing, and today’s signing with CIMB marks another milestone in our efforts at strengthening the health of these businesses which provide the key building blocks for the Malaysian economy to continue recovering and thriving. We are pleased to be able to partner with CIMB in ensuring the long-term sustainability of the SME business community."


Dato’ Mohammed Hussein said, "SMEs must continue to be viable and keep evolving to remain relevant and sustain the nation's economic recovery. In support of this, CGC, whilst remaining focused on our key objective of supporting SMEs and driving Malaysia's financial inclusion agenda, will commit ourselves to enhancing our own organisational readiness to fulfil that role. We are therefore pleased to collaborate with CIMB in the CIMB-CGC Financing Programme, enabling SMEs, through our guarantee programmes, to realise their respective business goals across a wide range of sectors in business and commerce."


CIMB-CGC Financing Programme


The programme is available for the purchase and refinancing of property under CIMB’s SME Banking, where customers can monetise their property for working capital of up to 150% of the value of the property.


SMEs that require collateral-free financing can opt for working capital of up to RM1.5million through CIMB’s Term Financing-i and Cash Line-i facilities, according to their business needs. This supports the revitalisation of SMEs with greater flexibility for business expansion in the post pandemic recovery phase.


Both of the financing products are supported by CGC with a 70% guarantee under the Portfolio Guarantee Mechanism.


Low Carbon Transition Facility (“LCTF”)


The LCTF is being offered as part of the LCTF financing scheme, established by Bank Negara Malaysia in January 2022, where CIMB has already committed RM100 million in financing. Through CIMB’s LCTF, businesses are encouraged and empowered to adopt low carbon and sustainable practices for business resilience. They will benefit from collateral-free financing of up to RM10 million with an affordable repayment period of up to 10 years at a low interest rate of up to 5% per annum.


The financing can be utilised for the installation of solar power systems, the adoption of recycled or biodegradable materials, improved process efficiency to reduce waste, as well as obtaining sustainability certification.


The LCTF is supported by both CGC and SJPP with guarantee cover ranging from 30% to 80%.


PGGS – PEMULIH Government Guarantee Scheme


The PEMULIH Government Guarantee Scheme (“PGGS”) is a Government Guarantee Scheme managed by SJPP, which provides up to 80% guarantee cover for new banking financing facilities or additional working capital of up to RM20 million, with a maximum loan tenure of 10 years. Meanwhile, for restructuring or rescheduling, the guarantee period is three years inclusive of a 12-month moratorium.


Beyond financial assistance, CIMB commits its resources and expertise through capacity building initiatives for SMEs. This includes, SME knowledge enhancement programmes which give access to partner services, including e-commerce and digitalisation, as well as CIMB MicroBiz Ready, its signature training and upskilling programme for B40 entrepreneurs. In addition, CIMB also empowers businesses to embark on their sustainability journey through the CIMB GreenBizReady programme by providing financial solutions and incentives such as sustainability-linked financing benefits, access to sustainability service providers, training and capacity building, certification and advisory services, and business matching with support from industry leaders and government agencies.

(From left): Ahmad Shazli Kamarulzaman, Deputy CEO, Group Commercial Banking, CIMB Group; Victor Lee Meng Teck, Chief Executive Officer of Group Commercial Banking, CIMB Group; Leong Weng Choong, Chief Business Officer, CGC; Dato’ Mohammed Hussein, Chairman, CGC; YB Senator Tengku Datuk Seri Utama Zafrul Tengku Abdul Aziz, Minister of Finance; Dato’ Abdul Rahman Ahmad, Group Chief Executive Officer, CIMB Group; Chen Yin Heng, Principal Officer of SJPP; Azlan Mohd Agel, Senior General Manager of SJPP and Ahmad Shahriman Mohd Shariff, Chief Executive Officer of CIMB Islamic at the signing ceremony.