CIMB Bank Bhd (CIMB), Malaysia’s second largest commercial bank, is offering loans to entrepreneurs of small-and medium-sized enterprises to help cope with the global economic gloom, Executive Director Datuk Ahmad Burhanuddin said on Jan 29.
As an immediate responsive measure, the bank has come out with two options to manage their finances.
Firstly, to reduce their loan repayment amount and secondly, to extend the loan repayment period, he said.
The move is to complement the government’s decision to reduce the Overnight Policy Rate (OPR) by 0.75 percentage point and the Statutory Reserve Requirement (SRR) to increase liquidity in the market, he told reporters after handing over house keys to families of flood victims here today
On credit facility, Ahmad said the SMEs are the best available alternative to stimulate the economy with the slide in exports to the United States and Europe following the economic and financial turmoil.
“Many of our industries have lost the demand from the United States and European countries. Hence, the SMEs are seen as the “main stimulant” to boost local demand and supply to tide over with the dwindling demand from the western market,” he said.
Ahmad said the SMEs in Kelantan and Pahang are among the small enterprises being given attention as not many of them were affected by the economic downturn.
He said the SMEs in the two states were seen as isolated or segregated all this while as they merely focused their business in the local market, hence enabling them to survive.
“Maybe in the long run, many of the SMEs will also be affected but at the moment, they are still strong and can be upgraded further.
“If we maintain this effort and continue to invest to produce goods sufficient for the local market and not depend on the foreign market, I believe the current economic downturn can be overcome,” he added.