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SMEs are important economic agents for Malaysia’s growth

[ 24-11-2015 ]
SMEs are important economic agents for Malaysia’s growth
SME Corp chief executive director Hafsah says SMEs are important economic agents for Malaysia based on its GDP contribution of 35.9 per cent last year, which was the above the standard benchmark for a developing nation status for SME. — Bernama photo

SME Corp chief executive director Hafsah says SMEs are important economic agents for Malaysia based on its GDP contribution of 35.9 per cent last year, which was the above the standard benchmark for a developing nation status for SME. — Bernama photo


SME Corp aims to hit 42 pct SME GDP contribution

MIRI: Small and Medium Enterprise Corporation (SME Corp) Malaysia aims to reach 42 per cent SME contribution to the country’s gross domestic product (GDP) by 2020, from 35.9 per cent last year.

SME Corp chief executive director Datuk Dr Hafsah Hashim said SMEs are important economic agents for Malaysia based on its GDP contribution of 35.9 per cent last year, which was the above the standard benchmark for a developing nation status for SME.

“By the year 2020, we strive to contribute 42 per cent GDP, 62 per cent employment and 25 per cent exports contribution for the nation as well as part of the SME’s development and capacity building area,” she said at the third Asian SME Conference 2015, held here recently.

Moreover, Hafsah said Asia is the largest and most populous continent, home to 4.4 billion people with a working age that has grown dramatically. She noted that 98 per cent of the business establishments in Asia are SMEs with total of 62 per cent employment and 42 per cent GDP contribution.

“Malaysia’s SMEs growth performance is impressive but still a long way to achieve a high income nation.”

“Through the statistic, SME development and capacity building is still a big pool of opportunities as with a population of merely about 30 millions, Malaysia could not afford to rely on domestic trade, but to utilize the SME market in the Asian region,” she added.

At the same time, she said SME faces various challenges including challenges in retaining their competitive age, limited access to finance, lack of entrepreneurial spirit and management skills, low innovation and technology adoption, lack of information, limited access to markets, lack of conducive business environment and inadequate capacity to comply with standards and certification.

She stressed, if the SMEs are able to identify and address these challenges, they can reach out to over 65 agencies in Malaysia which coorperates with SMEs. She pointed out that these agencies would able to offer SMEs support so they can be more structured and organised, while economic growth, new employment as well as empowerment of women and youth can be built as well.

She also said the government’s new framework can act as a facilitator and catalyst for SMEs through its supportive policies including improvement in government delivery, higher domestic demand and tourism, focus on farmers and small contractors factors.

“Through a new SME development framework for innovation-led and productivity-driven growth along with the minimise the key constraints to growth, innovation and technology, human capital development, finance access and market access, SME Corp vision to achieve a globally competitive SMEs across all sectors that enhance wealth creation and contribute to the country economy and social well-being,” Hafsah added.

She said the framework goals are to increase business information, expand the number of high growth and innovative firms, to raise productivity and to intensify formalisation.

The action plan of the framework is through the constitutional support and reliable databse with the focus areas on innovative and technology, market access, human capital development, legal and regulatory environment, access to financing and infrastructure.

“Therefore, it is important for SME to get registered under SME Corp as to benefit from all the implementation plans and privileges,” she added.