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Halal Finance
@ Halal | March-April . 2022
Supporting the growth of halal SMEs BIMB provides various Shariah-compliant financial solutions to support halal industries
Mizan Masram , Group Chief Business Officer – Retail , Bank
Islam Malaysia Berhad
BIMB recently inked an MoU with MIDA to provide the SMEs with opportunities to expand their business by allocating RM100 million for the Domestic Investment Strategic Fund ( DISF ).
BY FATIHAH MANAF
RECOGNISING the importance of small and medium-sized enterprises ( SMEs ) in developing the national economy , Bank Islam Malaysia Berhad ( BIMB or “ the Bank ”) has consistently shown tremendous efforts to support this segment for many years .
The Bank has established a longstanding relationship with various government agencies , corporations , and associations to provide Islamic financial solutions and support a variety of programmes initiated by respective bodies .
BIMB has established a Commercial Banking Division to serve large S M E s , while its SME Banking Division , introduced in 2018 , helps small and medium SMEs . The SME Banking Division covers a broader range of SME segments , including manufacturing industries , vendor associations and untapped segments such as women entrepreneurs and professional services .
According to BIMB Group Chief Business Officer – Retail ( GCBO-Retail ), Mizan Masram , the Bank has continuously pursued implementing strategic initiatives to further uphold and enhance SME businesses through several strategies .
This aligns with BIMB ’ s LEAP25 business plan , aiming to set BIMB as the champion in the Shariah-compliant environmental , social and governance ( ESG ) total financial solutions , with leadership in digital banking and social finance by 2025 .
“ Firstly , we ’ ve established five new SME hubs , increasing the SME footprints to approximately 16 hubs across the region , including major towns such as Sri Petaling , Georgetown , Sungai Petani , Kuching and Kota Kinabalu . We have also increased the number of our SME Relationship Managers as we want to further our reach and build stronger connections with the current and potential customers ,” said Mizan .
“ Secondly , we form new collaborations with government bodies , private companies , business associations such as Halal Development Corporation ( HDC ), Malaysia External Trade Development Corporation ( MATRADE ) and SME Corporation Malaysia ( SME Corp Malaysia ).
“ This is to provide Islamic banking solutions to SMEs , whilst spreading awareness that these solutions are not only for Muslim-operated businesses but also for all Malaysians .”
Committed to serving customers
Covid-19 has spared no one . As a bank that emphasises advancing prosperity , BIMB also conducted various financial assistance programmes to assist its customers , especially those affected by the Covid-19 pandemic .
To mitigate the limitation of in-person outreach due to the past Movement Control Order ( MCO ), the Bank assisted its customers through various online engagement and activities such as webinars and dialogues .
“ Fast forward to 2021 ; our SME Banking grew in an excellent way to improve our market share . In recognition of the nation ’ s first Main Market-listed pure-play fullfledged Islamic financial institution , and with the rollout of the Go Halal SME Financing Programme to promote the growth of Malaysia ’ s halal industry , BIMB received the Halal Financial Excellence Award at the World Halal Excellence Award 2021 , recently ,” shared Mizan .
Strengthening the SME portfolio
He said the Bank expected surviving businesses to start picking up pace with the lifting of Covid-19 restrictions . Increased desire for growth and expansion , digital acceleration , and technological advancements have opened new markets within the local and global environments , creating new business opportunities for SMEs to explore .
“ To meet the needs of SMEs in the market and enabling global penetration , BIMB will focus on strengthening and expanding more strategic collaborations with selected government agencies , GLCs , large corporations , business associations , as well as educational institutions .
“ We believe the synergistic collaborations will contribute to knowledge sharing while adding value to the SMEs by offering a full suite of Shariah-compliant financial solutions .
“ We plan to introduce more SME financing products and programmes this year to support the growing needs of SMEs in this time of change . The Bank will also strive to provide holistic and Shariah-compliant financial solutions to our customers , including structured wealth management .”
Strategic collaboration with MIDA
Mizan said BIMB ’ s recent strategic collaboration with the Malaysian Investment Development Authority ( MIDA ) was initiated with a common goal between both parties .
The collaboration aims to assist companies , particularly SMEs , to increase their skills and capabilities in specific industries , mainly related to high value-added , technology-driven , knowledge-intensive and innovation-based .
“ It assists SMEs to remain competitive in the fast-changing markets and embarking on digital transformation . It is also to assist SMEs in gaining access to financing and grants and maintaining growth in their business operations ,” explained Mizan .
The Memorandum of Understanding ( MoU ) between BIMB and MIDA marks a significant milestone in the Islamic financial sector . Shariah-based products and services introduced by BIMB complement MIDA ’ s goal to invigorate the investment environment in the country .
“ BIMB has allocated RM100 million for the Domestic Investment Strategic Fund ( DISF ) under MIDA . Through this fund , eligible SMEs can obtain the financial support they need to grow their business , amounting to RM5 million per enterprise .
“ This partnership would provide a platform for Malaysian SMEs with opportunities and access that they need to expand their