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News & Events

[ 06-12-2013 ]
SME Corp to allow blacklisted SMEs to resume business
KUALA LUMPUR: SME Corp Malaysia is looking at ways for automatic discharge for blacklisted companies to resume their businesses again, said chief executive officer Datuk Hafsah Hashim.

Hafsah said the agency was looking at various implications on the provision of the automatic discharge. 

"We have a look at some countries that have already implemented this automatic discharge for blacklisted companies. 

"Some of them gave the companies a one-year automatic discharge and some three. We are still studying it (on) what would be the best option," she told Bernama. 

The inability to service loans was the key reason why the companies were blacklisted, said Hafsah.


"So, we hope that once we are able to establish this 'second chance', we want to look into the capacity-building programme for these kind of companies which are affected, so that they can come back again on their feet to do their businesses," said Hafsah. 

She said SME Corp would provide advisory support to make sure that the companies could avoid the same pitfall. 

Currently, the law did not allow for automatic discharge, she said. 

Meanwhile, Hafsah said SME Corp has came out with new definition of local small and medium enterprises.

She said the new definition, which would be implemented from January 1, 2014, aimed to enhance the contributions of SMEs to the country's economy. 

"With the new definition, we will be pulling in 8,000 companies which today are considered mid-tier companies. They are neither here nor there because they are trapped in terms of the definition itself. 

"So, with the entrance of these companies, they would ehanced SMEs contributions to the economy," she said.

A review of the current definition was undertaken this year and a new SME definition was endorsed at the 14th National SME Development Council meeting in July 2013.

The new definition for SMEs involved in manufacturing is sales turnover not exceeding RM50 million or full-time employees not exceeding 200 workers.

On services and other sectors, the definition covers sales turnover not exceeding RM20 million or full-time employees not exceeding 75 workers. -- Bernama