Image credit: Retail News from Asia
KUALA LUMPUR (Aug 1): CIMB Bank Bhd and CIMB Islamic Bank Bhd are offering the NCIA-CIMB Entrepreneur Scheme (NCES) to eligible micro, small and medium entrepreneurs (MSMEs) in the northern region, namely the states of Perlis, Kedah, Penang, and Perak, which make up the Northern Corridor Economic Region (NCER).
In a statement on Monday (Aug 1), the banking group said the scheme provides up to RM5 million in rebates on interest and profit from CIMB’s SME loans and financing, and this is intended to further stimulate the growth of local businesses, and support the development as well as recovery of the economy.
It said the NCES is a partnership between CIMB and the Northern Corridor Implementation Authority (NCIA), which was launched in February.
CIMB said the partnership aims to revitalise the development of close to 1,500 MSMEs, in line with the 12th Malaysia Plan, via the reduction of financing cost through interest/profit subsidies.
It said eligible SMEs will be provided with a 50% rebate on the total interest/profit of their CIMB SME Quick Biz Financing.
The bank said this includes financing under the Targeted Relief and Recovery Facility (TRRF), a financing facility established by Bank Negara Malaysia to provide relief and support the recovery of SMEs affected by the Covid-19 pandemic.
SMEs eligible for the TRRF include those in wholesale and retail trade and business services sub-sectors, as well as other sectors, including food and beverage services, human health and social work, arts, entertainment and recreation.
The TRRF covers working capital financing, with a tenure of up to seven years, and financing of up to RM500,000 for each business.
CIMB Group group commercial banking chief executive officer Victor Lee Meng Teck said the country’s recovery continues to accelerate in parallel with the easing of pandemic-related restrictions, contributing to a climate of re-emerging, as well as new business opportunities, which include both the supply and demand parts of the value chain.
“The NCES is timely, as we reaffirm our commitment to the rejuvenation and growth of MSME businesses, which are key drivers of the revival of the Malaysian economy.
“As a newly on-boarded bank, the scheme gives us the opportunity to provide much-needed assistance in the form of rebates on financing packages for SMEs in the northern region, while also promoting the spirit of entrepreneurship at the same time,” he said.
Meanwhile, NCIA chief executive Mohamad Haris Kader Sultan said the pandemic had had a profound impact on communities and affected the livelihoods of many.
“The NCIA has always placed emphasis on the sustainability of the rakyat in the NCER, in our short-term and long-term efforts to revitalise the socio-economic development for all.
“This includes the business community, which forms the backbone of the nation’s recovery.
“Our collaboration with CIMB is one more initiative among the many which the NCIA has implemented in order to further boost the recovery of MSMEs, which in turn will spur the continued growth trajectory of Malaysian businesses,” he said.
Source: https://www.theedgemarkets.com/article/cimb-offers-rm5m-smefriendly-initiative-msmes-ncer