New Initiatives On The Horizon For SMEs
Last month the Government announced that it was drawing up a scheme that would chart the direction and progress of Malaysia’s many small and medium enterprises (SMEs).
And on Thursday Prime Minister Datuk Seri Najib Razak launched the Small Medium Enterprise Masterplan 2012-2020, describing it as a “game changer” for the way young businesses grow and develop.
Targeting an increase in the SME gross domestic product (GDP) contribution from 32 per cent in 2010 to 41 per cent in 2020, Najib said a national SME Development Council under the Prime Minister’s Department was also set up to oversee the national SME effort.
“Representatives from the private sector as well as government agencies sit in this council to make sure we pursue policies that are meaningful, relevant and practical,” he said.
The eight-year plan has four main objectives, namely, to drive business growth, increase the number of high-growth and innovative companies, increase productivity, as well as formalise the businesses.
“Based on today’s meeting, we emphasised the new ‘breakout’ strategy where we want to encourage and support the micro enterprises which comprise 77 per cent of all SMEs, to be raised to the level of SMEs,” Najib said.
“We want to ensure that the micro enterprises can be turned into bigger enterprises.”
At the start of the year, the Deputy Prime Minister reaffirmed the Government’s commitment local investment, nurturing the SMEs that constitute 99 per cent of the country’s businesses.
Nor Zahidi Alias, Chief Economist of Malaysian Rating Corporation, said Malaysian SMEs would remain resilient despite uncertain global growth.
“The growth of SMEs has consistently surpassed the overall economic growth between 2004 and 2010, where SMEs’ value-added growth averaged 6.8% versus 4.9% for the Malaysian economy,” he said.
Nor Zahidi said the government has taken numerous steps under ETP and GTP to support the SME sector, which will see it adding to overall growth. –The Choice