PETALING JAYA: CIMB Bank Bhd and CIMB Islamic Bank Bhd are offering the NCIA-CIMB Entrepreneur Scheme (NCES) to eligible micro, small and medium entrepreneurs (MSME) in the northern region, namely Perlis, Kedah, Penang, and Perak, which make up the Northern Corridor Economic Region (NCER).The scheme provides up to RM5 million in rebates on interest and profit from CIMB's SME loans and financing which is intended to further stimulate the growth of local businesses and support the development as well as recovery of the economy.The NCES is a partnership between CIMB and the Northern Corridor Implementation Authority (NCIA) which was launched in February 2022. The partnership aims to revitalise the development of close to 1,500 MSME, in line with the 12th Malaysia Plan via the reduction of financing costs through interest/profit subsidies.Eligible SMEs will be provided with a 50% rebate on the total interest/profit of their CIMB SME Quick Biz Financing. This includes financing under the Targeted Relief and Recovery Facility (TRRF), a financing facility established by Bank Negara Malaysia to provide relief and supportthe recovery of SME affected by the pandemic. SME eligible for the TRRF include those in wholesale and retail trade, and business services subsectors, 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.Under the NCES, CIMB is the financier of the facility, whilst NCIA's role is to assist eligible customers to reduce their cost of financing through subsidies. Meanwhile, Credit Guarantee Corp Malaysia Bhd (CGC) operates as the sole agency that provides guarantee cover of up to 70% on the financing provided to the SME.CIMB CEO of group commercial banking Victor Lee Meng Teck said the scheme gives the bank the opportunity to provide assistance in the form of rebates on financing packages for SME in the northern region whilst also promoting the spirit of entrepreneurship at the same time.CIMB has also rolled out the flagship SME Community Outreach programme for MSME within the northern region. This is done via webinars, roadshows and engagement activities, where the participants are provided with insights to the different types of financing available and guidance on how best to ramp-up their digitalisation efforts. Through these initiatives, both CIMB and NCIA will provide guidance for MSME in enhancing their business productivity and profitability whilst boosting their competitiveness in the marketplace and enabling them to create new job opportunities - particularly within the northern region.To-date, the ongoing capacity building engagement sessions, which started in February 2022, have benefited over 140 participants. The sessions have helped improve their financial literacy while obtaining a better understanding of the NCES and the role CGC plays in guaranteeing credit, as well as the benefits and opportunities afforded through digitalisation of businesses with partners such as Exabytes and Mesinkira.The NCES is open for applications until Sept 30.
