Palm | Kelapa Sawit

The government recently rolled out the first phase of the master plan for the small- and medium-sized enterprises (SMEs), to stimulate their productivity and innovation levels to match those of a high income nation.    

Prime Minister Datuk Seri Najib Razak, in announcing this, said the plan (2011-2020) focuses on developing high-growth SMEs to become home-grown champions that spearhead the economy.

SME competitiveness needs to be developed further not only in the context of SME relations with the global market but also to enable them to compete in the local market in the context of globalisation and liberalisation, he said.

The Asean Free Trade Area and other multilateral agreements make the market more open than before.

   

Najib said requirements for licences and permits have been relaxed, following the analysis by the World Bank that SMEs here had too many requirements to fulfil in order to operate their businesses.

A pilot study on impact assessment by the World Bank on 15 SME programmes found the productivity level of SMEs in Malaysia was low at RM44,300 per worker - one-third of the large companies (RM143,000 per worker) and also lagged behind other countries.

"It has something to do more or less with corruption. Because of this, we will make obtaining licences and permits easy," he told a media briefing, after chairing the National SME Development Council meeting in Putrajaya.

   

He said the task will be given to the chief secretary to the government as the chairman of Pemudah (the Special Taskforce to Facilitate Business), who will later submit proposals to the government.

   

Najib said a "green lane" policy for SME products and services will be introduced to the government as well as government-linked companies.

   

"The opportunities will be given through central contracts to high-potential SMEs that have highly innovative products based on recommendation by the SME Corp and the Malaysian Technology Development Corp," he said.

   

Assistance to penetrate the global market is also being considered for those with potential but have failed to win any prizes.

   

The council also approved the SME Integrated Plan of Action 2011, which encompasses a total of 219 programmes being implemented with a financial commitment of RM5.9 billion in 2011, compared to 226 programmes for a total of RM7.1 billion in 2010.

   

SME contribution to GDP is expected to increase from 31 per cent in 2010 to 40 per cent by 2020 as value added growth of SMEs continued to outpace the overall economy .

   

The quantum leap in growth is highly dependent upon a significant increase of 75 per cent in productivity gains of SMEs, added Najib.

   

As at end February, SME financing outstanding stood at RM130 billion, accounting for 38.3 per cent of total business loan.

Source : Business Times