CIMB Expects To Increase Its Share Of SME Sector In Singapore

CIMB has set its sights on expanding its share of the SME sector in Singapore, with plans to increase its market share from 3 percent to 6 percent by 2021. This ambitious goal is underpinned by the bank’s strategic focus on linking the SME sector in China, which seeks greater penetration into the global halal market, with businesses in Southeast Asia. The bank’s ASEAN-China Halal Corridor initiative, launched last year, is at the heart of this strategy. It aims to connect halal businesses in agribusiness, cosmetics, food and beverage, fashion, and pharmaceuticals across the region, providing a platform for SMEs to participate in the rapidly growing halal economy.

CIMB has seen strong interest from SMEs in Singapore, as demonstrated by high participation levels at a recent workshop on the halal corridor. Yong Jiunn Run, head of CIMB commercial banking, pointed out that cross-border SME flows, particularly in manufacturing, trade, and the food and beverage sector—including halal businesses—are key areas of growth. These sectors are the driving force behind the regional SME market, which CIMB aims to support by offering tailored financial products and services.

Related: CIMB Wins Best Islamic SME Award

The global halal market presents vast opportunities, with China’s halal sector expected to reach a staggering $1.9 trillion by 2021. This market, coupled with the ASEAN region’s large Muslim population, offers a potential customer base of 266 million people. Recognizing this opportunity, CIMB has increasingly focused on assisting SMEs, especially in the food and beverage sector, with obtaining halal certification and securing Islamic financing. Many SMEs in Singapore, particularly those involved in the halal sector, are seeking financing from Muslim investors, which has further prompted CIMB to pivot its services toward Islamic finance.

CIMB’s efforts in Islamic finance have already yielded significant results. Since 2014, the bank has seen a 48 percent annual growth in the uptake of Islamic financing by SMEs, a trend that is likely to continue as more businesses look to tap into the global halal market. The bank’s ability to provide Shariah-compliant financial solutions gives it a competitive edge in this sector, helping businesses meet the growing demand for halal-certified products.

To further enhance its offerings for SMEs, CIMB has revamped its business current account product, CIMB BusinessGo (BizGo). First launched in January 2017, BizGo was refreshed to provide more competitive features, including free FAST (Fast and Secure Transfers) transactions, the best forex rates guaranteed for transfers to Malaysia, and interest rates of up to 1.88 percent per annum, one of the most competitive rates in the market. Ian Chan, CIMB Bank Singapore’s co-head of transaction banking and regional head of digital banking, highlighted that BizGo was revamped to coincide with CIMB’s 10th anniversary in Singapore and to underscore the bank’s commitment to supporting SMEs in their growth journey across ASEAN and beyond.

CIMB is also exploring opportunities to further expand its digital banking services for SMEs. The bank is evaluating the possibility of applying for a digital banking license in Singapore. However, Yong Jiunn Run cautioned that pursuing digital banking for its own sake is not the goal. Instead, the focus must remain on addressing the core needs of SME customers. “If you want to go into the digital banking arena, you have to ask yourself what customer pain points are you trying to resolve. Understanding these key pain points of the customer will help us tailor our services to the growing needs of the SME sector here,” Yong explained. He added that if CIMB can address these needs without going fully digital, the bank may continue to use existing technologies, while still looking for innovative ways to serve SMEs.

CIMB’s focus on halal trade, Islamic finance, and SME banking reflects a broader trend of increasing halal investments globally. With halal businesses growing across key sectors such as food and beverage, agribusiness, and fashion, the demand for Shariah-compliant financial products is on the rise. By linking SMEs in Singapore and China to the broader halal market, CIMB is positioning itself as a key enabler in the global halal economy.

Furthermore, the bank’s investment in both traditional and digital banking solutions allows it to cater to the evolving needs of SMEs, which are increasingly seeking flexible and tailored financial solutions to expand their businesses internationally. CIMB’s plans for the SME sector in Singapore are ambitious, but they align with the bank’s overarching strategy of supporting regional economic integration and tapping into the lucrative halal market.

In conclusion, CIMB’s aggressive push into the SME sector in Singapore is rooted in its commitment to providing innovative financial solutions that cater to the unique needs of halal businesses. By leveraging the ASEAN-China Halal Corridor initiative and offering competitive products like BizGo, CIMB is well-positioned to become a key player in the SME market, both in Singapore and across the broader ASEAN region. With its focus on Islamic finance and the halal economy, CIMB is not only helping SMEs grow but also fostering greater economic connectivity between China, Singapore, and the global halal market.