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5 Dec, 2017

Online Initiative to monitor transparency of Government assistance to Malaysian SMEs

KUALA LUMPUR, 29 Nov 2017, (Bernama) — In an effort to enhance the transparency of reporting and coordination of SME programmes, SME Corp. Malaysia developed an online initiative called the SME Central Incentives System (SCenIc). As a centralised database of beneficiaries of Government assistance, SCenIc served as an important referral to avoid duplication and optimize resources.

SCenIc was launched during the 23rd National SME Development Council (NSDC) Meeting, chaired by the Prime Minister Dato’ Sri Mohd Najib Tun Haji Abdul Razak today. The 23rd NSDC Meeting was also attended by 16 Ministers and Deputy Ministers responsible for the development of SMEs in Malaysia. 

During the meeting, Department of Statistics, Malaysia presented the overall performance of SMEs in 2015 based on Economic Census 2016 and complemented by synthesis study. In overall, SMEs performed better in gross output and employment across industries for year 2015. In 2015, there were 907,065 SMEs establishments made up 98.5% of total business establishments, registering an average growth rate of 7.3%, exceeded the 6% growth as targeted in the SME Masterplan.

Services remained the largest SMEs contributor at 89.2%, mainly in Wholesale & Retail Trade (51.2%) and Food & Beverages (20.4%). Women-owned SMEs accounted for 186,930 made up of 20.6% of total SME establishments in 2015. In 2015, the labour productivity of SMEs based on Economic Census 2016 has elevated further to RM74,289 from RM57,823 per worker in 2010, with an average growth rate of 5.1% per annum.

In terms of GDP growth, SME GDP continued to increase by 5.2% in 2016, in line with the overall GDP growth of 4.2%. SMEs contributed 36.6% (2015: 36.3%) to the overall GDP with a value of RM405.5 billion (2015: RM385.6 billion). The SME exports of goods and services recorded RM154.6 billion with a growth of 6.6% in 2016.

In reference to the Third Quarter 2017 SME Survey conducted by SME Corp. Malaysia, SMEs are looking forward for an improvement in their business in the near term despite continued to face rising cost pressure. However, with the recent comprehensive and all-encompassing 2018 Budget, some of the issues will be resolved by addressing the current requirements of SMEs.

The government has allocated RM22.2 billion for SME development to be implemented by various Ministries and agencies which will address the specific multi-faceted requirements of SMEs which include export promotion, financing, entrepreneurship, as well as sector-specific needs in transportation, green technology, tourism, halal and the creative industry.

For coordination of Human Capital Development Programmes, the Federal Government’s top priority as outlined in the Eleventh Malaysia Plan (2012-2020) continues to focus on increasing the capability of the Malaysian workforce through training and development. In order to achieve this target, Human Resources Development Fund (HRDF) proposed an immediate measure to reduce duplicative training, development efforts and their funding allocations through the establishment of Central Training Repository.

As an initiative to provide online information about entrepreneurship to SMEs in Malaysia, SME Corp. Malaysia and SME Bank collaborated with Suhan Movies & Trading Sdn Bhd for the second season of Chor & Chah mini-series.  Viewers can expect more handy information on product exports, financial assistance and other incentives offered by various Ministries and agencies. YAB Dato’ Sri Mohd Najib Tun Haji Abdul Razak also launched the Chor & Chah – Season 2 after the 23rd National SME Development Council (NSDC) meeting.

About SME Corp. Malaysia

SME Corp. Malaysia is a Central Coordinating Agency that formulates overall policies and strategies for SMEs and coordinates the implementation of SME Development Programmes across all related Ministries and Agencies. It acts as the central point of reference for research and data dissemination on SMEs, as well as, provides advisory services for SMEs in Malaysia.

SME Corp. Malaysia also assumes the role of the Secretariat to the National SME Development Council (NSDC) which is chaired by YAB Prime Minister of Malaysia.