CIMB Islamic Bank Berhad (“CIMB Islamic”) unveiled late last year an initiative in support of small and medium enterprises (SMEs) in Malaysia looking to grow their business in the global halal market.
Through CIMB HalalBizReady, the proposition provides financing packages that help businesses become compatible with the requirements of halal certification whether by getting their premises, operations or supply chain to be to be in line with those requirements.
CIMB HalalBizReady is part of CIMB’s refreshed SME proposition’s suite of solutions that comprises three main pillars: SME Transact, SME Financing and collaborations via industry SME Partners. Apart from business financing, CIMB HalaBizReady also gives customers access to a wider global and regional market via the CIMB Trade Club platform, and access to the expertise of CIMB’s halal-based strategic partnerships which aim to facilitate businesses to become Halal ready for further growth.
Ahmad Shahriman Mohd Shariff, Chief Executive Officer, CIMB Islamic said, “CIMB HalalBizReady is an empowering proposition to help businesses expand beyond Malaysia to access the US$2.2 trillion global halal market. The RM100 million financing support is part of CIMB’s RM15 billion commitment to finance SMEs, announced earlier this year.”
“This reflects our commitment to growing Islamic banking assets, with 82% of CIMB’s SME financing growth in 2019 year-to-date attributable to Shariah-compliant businesses. ASEAN alone has 242 million Muslims, providing a huge demand pool that is accessible to these businesses through CIMB’s strong regional network and membership of the CIMB Trade Club,” he continued.
The CIMB Trade Club is an exclusive digital e-commerce ecosystem participated by 14 global banks whose network spans over 50 countries, and is aimed at empowering member companies to promote their businesses and expand their markets globally.
This is further supported by CIMB’s SME Transact pillar, providing cash management services, as well as potential reward opportunities of up to 2% hibah per annum for current accounts and fee waivers on online business banking. Additionally, under the SME Financing pillar, eligible Shariah-compliant SMEs have access to financing of between RM10,000 to RM1 million, 70% of which will be guaranteed by Credit Guarantee Corporation, adding further convenience to businesses who are seeking to expand into the halal market.
Through the CIMB HalalBizReady, SMEs can also benefit from CIMB’s knowledge partners to get their products and services ready for the growing Halal market across the globe. These partners provide guidance and training in getting businesses halal-ready and halal-certified based on the requirements of different markets.
The SME landscape offers a huge potential for Halal business growth. As of 2018, approximately 90% of SMEs in Malaysia are not halal-certified, owing to various reasons including the lack of understanding and knowledge of the process, as well as the cost of certifying premises and the supply chain. Typically, most companies with halal certification are large multinationals. The global Halal market, valued at USD2.2 trillion, and estimated to grow at a CAGR of 7.3% in the next 5 years, provides a strong business case to prioritize halal certification.
