Seeking to deepen presence in SME market
Group expects strong growth in sustainable finance “With CIMB’S origins in Malaysia, we take pride in supporting and catalysing the growth of SMES operating in the country.”
CIMB Group is striving to deepen its presence in the small and medium enterprise (SME) space to capture the lucrative segment.
Its co-chief executive officer (group commercial and transaction banking) Lawrence Loh tells Starbizweek judging from the fact that SMES are the backbone of the Malaysian economy, with close to 40% contribution to the gross domestic product (GDP), this segment is a key focus for CIMB.
“With CIMB’S origins in Malaysia, we take pride in supporting and catalysing the growth of SMES operating in the country.
“The SME business sector is an important contributor to CIMB Group’s revenue. Our market share of the business is about 15%, being one of the leading banks for SMES in the country,” he stresses.
Elaborating on some of its strategies to command a stronger foothold in the SME segment, he says the group is committed to supporting SMES to embark on a sustainable journey while boosting productivity via digitalisation and automation.
In the sustainable finance landscape, he says the bank expects strong growth over the three to five-year horizon.
To achieve this, he says the bank aims to continue fostering closer relationships with industry partners who can help provide SMES with solutions to improve, enhance and adopt sustainable practices.
“CIMB Greenbizready is our award-winning complimentary proposition for our customers to embark on or advance in their sustainability journey.
“It goes beyond financing by offering training and capacity building, connectivity with service providers and access to simple tools and templates, among other benefits.”
He said since its launch in 2021, customers have benefited from CIMB’S Greenbizready associates such as renewable energy and energy efficiency service providers, government agencies and others to help them progress on their sustainability journey.
“In addition, as we progress, we have also been concurrently engaging relevant stakeholders including regulators, government agencies, customers and business associations while we proactively respond to the constantly changing environment,” Loh adds.
As a whole-of-nation approach, he says all stakeholders must play their part equally. It is also crucial for SMES to progress by taking action, bringing their businesses ahead from the initial awareness phase, which has been the focus for the past two to three years or even more, he explains.
Loh says one such event to catalyse sustainable practice is The Cooler Earth Summit – CIMB’S flagship sustainability event, where the group engages with clients and partners to better understand their sustainability needs and how it can act as their preferred financial solutions partner in support of their transition towards sustainability.
He says the niche which CIMB has and which differentiates itself from its peers is that the bank focuses on adding value to customers’ businesses, providing them not just with financial support and solutions but connections to work with various players and partners to bring innovation into their operations.
“CIMB recently launched the CIMB Smebizready, a suite of solutions for SMES centred on digitalisation, technology and sustainability.
“At the heart of this tool is CIMB’S Valuebased Financing, based on Bank Negara’s financing schemes to SMES to embrace technological advancements, adopt automation practices and drive growth in their respective industries.
“Four pillars of financing are provided such as SME Automation and Digitalisation Facility, High Tech and Green Facility, Low Carbon Transition Facility and Agrofood Facility, each designed to pivot SMES to be future-ready and sustain their businesses.”
He said CIMB Greenbizready also further incentivises SMES in their transition to low-carbon practice.
Lawrence Loh