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KUALA LUMPUR: CIMB Bank Bhd and CIMB Islamic Bank Bhd recently announced a RM50 million allocation to benefit the micro small and medium enterprises (SME) segment.

The allocation will be disbursed via CIMB SME Micro Financing-i, an Islamic working capital with financing amount of up to RM50,000.

CIMB Group said its support of the micro SME sector complemented the government’s newly-announced stimulus measure to aid the growth of SMEs in the 2020 Budget.

It is also in line with the national entrepreneurship policy to have 50 per cent of Malaysia’s gross domestic product contributed by SMEs by 2030.

The micro financing solution is made available via Credit Guarantee Corp Malaysia Bhd’s (CGC) imSME platform, an online SME financing referral platform launched in 2018.

imSME is an innovative idea mooted by Bank Negara Malaysia and supported by other participating banks.

The online platform enables SMEs to access fast and real-time information on financing options.

SMEs can sign up for CIMB’s micro financing solution via imSME at 30 CIMB branches currently.

CIMB Group said the platform would be made available at all CIMB branches nationwide by year-end.

CIMB GRoup chief executive officer of commercial banking Victor Lee Meng Teck said: “This is yet another great collaboration with CGC where the focus is on helping micro SMEs meet their unique developmental needs by making financing more accessible.

“Our RM50 million allocation is aimed at encouraging not only the growth of micro SMEs but also entrepreneurship among the B40s to help them improve their income and livelihood.”

Lee added that this was in line with CIMB’s earlier commitment to supporting and spurring the SME segment by allocating RM15 billion to help finance 100,000 local SMEs in the next two years.”

Leong Weng Choong, chief business officer of CGC said while SMEs formed a majority of the business establishments in Malaysia, they were often underserved due to lack of collaterals.

Other collaborations between CIMB and CGC include a strategic partnership sealed in April 2 to provide SMEs access to RM2 billion in financing through CGC’s Portfolio Guarantee-i scheme.

Separately, CIMB Bank recently launched the CIMB SME Renewable Energy Financing. This scheme covers 100 per cent financing, from as low as RM20,000 and up to RM1 million , for SMEs to install solar photovoltaic systems on their rooftops to help offset energy cost.