2
Message from YAB Prime Minister
Against a backdrop of an increasingly competitive environment and uncertain global economic landscape, the small and medium enterprises (SMEs) have continuously demonstrated resilience, perseverance and determination not only to succeed, but to become an important catalyst for Malaysia’s economic development towards attaining the nation’s aspiration in becoming a high-income economy in 2020.
Central to our country’s transition is the Economic Transformation Programme (ETP) where SMEs will play an integral part of this transformation process. Many of the projects announced under the various National Key Economic Areas (NKEAs) will benefi t SMEs. SMEs are poised to assume an even greater role in propelling Malaysia and increasing their contribution to the economy going forward. However, with the new role comes new challenges. This also includes the challenges from the liberalisation of the services sector where SMEs have a strong presence. The changing environment and new role I believe will call for a new approach to SME development to accelerate the growth of SMEs. For this purpose, the Government is now fi nalising the SME Masterplan that will chart the policy direction for SMEs through the year 2020 by creating the conducive ecosystem for SMEs to fl ourish and enhance their competitiveness and over time to develop some homegrown multinational companies. The Masterplan aims to transform domestic SMEs to be globally competitive towards enhancing wealth creation and contributing to the social well-being of the nation.
The Masterplan will build on existing Government support provided by the National SME Development Council (NSDC). The coordinated approach in SME development through policies by NSDC have seen encouraging results, with value added growth of SMEs continuing to expand strongly in 2010 by 8.4%, higher than the overall GDP growth of 7.2% for the economy. Consequently, the contribution of SMEs has trended upwards over the years from 29% in 2005 to 31.9% in 2010. The favourable growth performance was also accompanied by productivity gains. In 2010, the Government invested a total of RM7.1 billion for the implementation of 226 SME development programmes that had benefi ted over 600,000 SMEs. This year will see a further RM5.9 billion of fi nancial commitment channelled towards implementing 219 programmes which are expected to benefi t about 400,000 SMEs nationwide. The Government has also gone a step further to evaluate the impact of SME development initiatives by implementing a result-based approach aimed at three levels, namely at the macro level based on high level indicators such as GDP, employment and productivity assessment as well as programme and fi rm level assessment involving improvement in sales, profi tability, productivity and other performance indicators.
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Moving forward, Malaysian SMEs must strengthen their position in preparation for the liberalisation measures which has brought competition closer to home and irreversibly changed the environment in which they operate. The next few years will therefore be critical in building the capacity and capability of SMEs to not only withstand the ongoing competition but for SMEs to leverage on opportunities arising from the liberalisation measures and the ETP projects to realise growth. This is well-depicted through the theme for this year’s SME Annual Report which is “Leveraging Opportunities, Realising Growth”.
With this in mind, in the recent 2012 Budget, SMEs have been given special focus with a comprehensive and inclusive approach covering microenterprises, rural SMEs and women entrepreneurs. With all the programmes by the 15 Ministries and 60 Agencies which are a testimony of the Government’s commitment towards the development of SMEs, I am confi dent that Malaysian SMEs will rise to the challenge and together, they will propel the nation towards the journey to become a fully developed nation by 2020.
Dato’ Sri Mohd Najib Tun Haji Abdul Razak Prime Minister of Malaysia / Chairman of National SME Development Council October 2011
National SME Development Council SME ANNUAL REPORT 2010/11
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Chapter 1: The Malaysian Economy 7
Chapter 2: SME Developments and 19 Outlook
76225 SME AR 2010n11.indd 4 11/10/11 2:24 PM Chapter 1: The Malaysian Economy
Developments in 2010 8
Outlook for 2011 11
76225 SME AR 2010n11.indd 5 11/10/11 2:24 PM 76225 SME AR 2010n11.indd 6 11/10/11 2:24 PM CHAPTER 1 The Malaysian Economy 7 The Malaysian economy recorded a strong recovery in The Malaysian 2010 with real Gross Domestic Product (GDP) expanding Economy by 7.2% and the growth momentum continued into the fi rst half of 2011. Robust domestic demand emanating from higher private sector spending and improvements in employment conditions underpinned the growth. On the back of continued challenging global economic environment characterised by uneven growth across countries, elevated prices and volatile capital fl ows, the Malaysian economy is projected to expand at a more moderate pace of 5.0 - 5.5% for 2011 as a whole. Key initiatives by the Government under the Economic Transformation Programme (ETP) together with the sound macroeconomic fundamentals and continued access to fi nancing will be key elements in enabling the country towards a sustainable growth path.
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Developments in 2010 Following the downturn from the Aggregate domestic demand Public expenditure continued global economic and fi nancial crisis expanded strongly refl ecting to support economic growth in 2009, the Malaysian economy high consumer spending activity particularly on rural infrastructure, rebounded to record a strong amidst the improved labour urban transportation and in the growth of 7.2% in 2010. Growth was market conditions and the steady provision of public education underpinned by robust domestic increase in income, including rural and healthcare services. demand, particularly private sector income from strong commodity activity, and continued public sector prices. At the same time, private spending on infrastructure and investment turned around to register enhancement of the delivery system. a double digit-growth to refl ect Recovery in external demand the expansion of capital spending further lent support to growth with across all sectors, particularly the diminishing impact in the second manufacturing, mining and services half year. Strong domestic demand sectors, as a result of favourable and exports led to expansion in all domestic economic conditions and economic sectors during the year. an improvement in external demand.
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Table 1.1: Real GDP by Expenditure (at 2000 prices)
2009 2010 1H 2011 Annual Change (%) Domestic Demand1 -0.4 6.3 6.1 Private sector expenditure -2.6 8.3 n/a Consumption 0.7 6.5 6.6 I nve s tm e nt -17.0 17.7 n /a P u b l i c s e c to r ex p e n d i t u r e 5.4 1.5 n /a Consumption 3.9 0.5 6.3 Investment 7.5 2.8 n/a
Net exports of goods and services 3.2 -25.7 -21.4 On the sectoral performance, Exports -10.5 9.9 2.8 all economic sectors grew in 2010. The services sector was the Imports -12.2 15.1 5.7 largest contributor to GDP growth Real GDP -1.6 7.2 4.4 accounting for 3.9 percentage points. The strong performance 1 Excluding stocks was driven by services sub-sectors Source: Department of Statistics, Malaysia related to domestic demand namely distributive trade and Table 1.2: Real GDP by Key Economic Activity (at 2000 prices) communications. After a sharp decline in 2009, the manufacturing 2009 2010 1H 2011 sector recovered fi rmly, with the electrical and electronics (E&E) Annual Change (%) sub-sector and domestic-oriented Agriculture 0.6 2.1 3.4 industries rebounding to register double-digit growth. This was Mining & Quarrying -6.3 0.2 -6.6 largely attributed to the revival of Manufacturing -9.3 11.4 3.8 global corporate IT investments and higher consumer spending on Construction 5.9 5.1 2.1 electronics that promoted greater Services 3.1 6.8 6.4 demand for semiconductors and audio-visual products. The Real GDP -1.6 7.2 4.4 agriculture sector posted a higher Source: Department of Statistics, Malaysia growth due to sustained production of food crops and strong rubber output. The construction sector was supported by increased activity in the non-residential segment and by infrastructure projects as part of the Government’s Second Stimulus Package particularly in the fi rst half of the year.
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Table 1.3: Inflation and Unemployment
Infl ation increased although 2009 2010 remained at a relatively low level Annual Change (%) as refl ected by the change in the Consumer Price Index (CPI) of Infl ation 1.7% for 2010. Supply factors Consumer Price Index (2005 = 100) 0.6 1.7 affecting food and commodity prices as well as adjustments to Producer Price Index (2005 = 100) -7.1 5.6 administered prices as part of the Unemployment 3.7 3.4 subsidy rationalisation led to the increase in CPI. Of signifi cance, Source: Department of Statistics, Malaysia the higher global commodity prices resulted in the producer price index, Table 1.4: Balance of Payments as measured by the Producer Price Index (PPI) increasing to 2009 2010 5.6%, while core infl ation, an indicator of the demand-driven RM Billion pressures on prices, moderated Balance on current account 112.1 88.1 to 1.5% in 2010 (2009: 2.7%).
% of GNI 16.9 11.9 Amidst the economic recovery in Goods balance 141.7 134.7 2010, labour market conditions improved with lower retrenchments, Export of goods 554.1 640.0 higher vacancies and increase in Gross exports (% annual change) -16.5 15.5 employment growth. Overall, the unemployment rate declined to Imports of goods 412.3 505.3 3.4%. Retrenchments declined as Gross imports (% annual change) -16.2 22.6 the manufacturing sector recovered, while the services sector continued Ser vices balance 4.7 1.7 to emerge as the major source of Income account -14.6 -26.5 employment. Labour productivity, as measured by real value-added Current transfers -19.6 -21.8 per worker turned around to Balance on capital and fi nancial accounts -80.4 -20.0 increase by 5.8% during the year from a negative 2.1% in 2009, Direct investment -22.9 -13.6 due in part to upturn in economic Abroad -27.9 -42.9 activity and partly to greater effi ciency from upgrading of skills. In Malaysia 5.0 29.3 Portfolio investment -1.7 48.5 Malaysia’s external position remained resilient during the year Other investment -58.1 -54.0 on the back of a sizeable current Errors and omissions -17.9 -70.7 account surplus and lower net outfl ow. Trade surplus although Overall balance (surplus + / defi cit -) -13.8 2.6 remained large was lower during the Net international reserves BNM 331.3 328.6 year as the import growth outpaced export growth fuelled by acceleration Net international reserves of BNM (USD billion) 96.7 106.5 in domestic demand. The services Reserves as months of retained imports 9.7 8.6 account posted a small surplus
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supported by receipts from tourism economies as they brace against The Malaysian and computer and IT services, high unemployment combined with while the defi cit in the income weak credit and fi scal conditions. economy is account widened due to higher expected to expand repatriation of profi ts and dividends After experiencing above-trend at a moderate pace by foreign investors operating in growth in the previous year, the Malaysia. The fi nancial account Asian economies are poised to of 5.0 - 5.5% in 2011, recorded a smaller net outfl ow continue to lead the growth path, against a backdrop during the year due to resumption albeit the momentum returning of continued in portfolio infl ows similar to the to their long-term growth trend. other regional countries amidst Growth in Asia is expected to be challenging global a more positive growth outlook, driven by domestic demand amidst environment as well as higher foreign direct the favourable labour market and investment (FDI). As at end-2010, fi nancing conditions and intra- in tandem with the slowdown in the overall international reserves regional trade. Notwithstanding, global trade, the contribution of remained strong at RM328.6 the changing growth dynamics net exports would turn around to billion equivalent to USD106.5 and monetary tightening in certain be positive amidst a larger trade billion. As at 14 October 2011, emerging economies have also surplus on sustained commodity the overall international reserves brought about new challenges, exports to the Asian region. amounted to RM427.9 billion which resulting in shift in global short- is equivalent to USD134.4 billion, term capital fl ows from the • Domestic demand is expected suffi cient to fi nance 10 months of advanced economies to emerging to remain strong led by retained imports and is 4.6 times markets. This is likely to complicate private sector activity. the short-term external debt. monetary policy and lead to asset bubbles in these capital o Private consumption is Outlook for 2011 recipient economies, while the high envisaged to be supported commodity prices are also likely to by improved labour market exert infl ationary pressures. Thus, conditions, higher disposable The Malaysian economy is expected 2011 will continue to be another income and continued to expand at a moderate pace of challenging year as the authorities access to fi nancing. 5.0 - 5.5% in 2011. This is against a in emerging markets manage backdrop of continued challenging these risks, while in the advanced global environment. Despite the economies, the policies would global recovery from one of the be towards stimulating growth. worst fi nancial crisis, the growth performance is expected to be The Malaysian economy will uneven, with robust activity in the be supported by sustained emerging markets and more modest domestic demand and positive net performance in the advanced exports from strong commodity economies. Sovereign debt and performance despite the moderate fi scal concerns in the Euro area external environment. The growth as well in the United States (US), momentum in 2010 continued into geopolitical tensions in the Middle the fi rst half year of 2011, with real East and impact from the Tsunami GDP expanding by 4.4%. While in Japan will likely to weigh down on external demand will moderate growth prospects in the advanced
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o Private investment to remain tourism activities, as well o The mining is projected to robust led by domestic- as fi nance and business pick up on higher natural gas oriented industries amidst the sub-sectors due to robust output following the opening high capacity utilisation and capital market activities of two new gas fi elds. implementation of the entry and implementation of ETP point projects under the ETP. projects. The communication o Growth in the construction sub-sector is also expected sector is likely to be sustained o Public sector to remain to continue to remain strong at a high pace supported supportive of growth following supported by demand by civil engineering sub- the implementation of new for non-voice segment sector due to the ongoing projects and acceleration of following the growing infrastructure projects existing projects to promote popularity of smartphones and implementation of private sector activity. and new devices and wider projects under the ETP. usage of broadband. • On the supply side, all The GDP growth forecast is economic sectors are expected o Output of domestic-oriented premised on the assumption to expand in 2011 supported industries is expected of continued global growth on by domestic economic activity. to lend support to the sustained activity in the advanced The key sectors, services and manufacturing sector arising economies and return to trend manufacturing, are expected to from increased consumption growth in the Asian economies. grow albeit at a more moderate and construction activity. Nevertheless, the fragility in US and pace in line with the slower Europe due to the looming debt growth of the trade-related o The agriculture sector and bourgeoning fi scal defi cit have services and export-oriented is expected to record a exacerbated the weakness in the manufacturing industries. higher growth due to a global economy and raised the turnaround in output of risks of a “double-dip” recession. o The services sector will be industrial crops, namely palm The potential risks to the Malaysian supported by wholesale oil and rubber benefi ting economy would be weaker-than- and retail trade sub-sector from the strong global expected external demand amidst due to consumption and demand and high prices. deterioration in global economic and
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fi nancial conditions, higher-than- • Gross imports to expand at a increase in domestic demand and expected capital fl ows and elevated moderate pace in tandem with wages. Prices will also be affected infl ation due to supply side factors. the growth in manufactured by the timing and magnitude of the This could result in massive shifts exports but strong consumption adjustments to the administered in global liquidity, uncertainties in and capital imports supported by items under the Government the international fi nancial markets fi rm domestic economic activity. subsidy rationalisation programme. fl ows, and the changing global fi nancial landscape that has potential • The fi nancial account is expected Labour Market Outlook of destabilising fi nancial markets to be underpinned by higher in the emerging economies. gross infl ows of FDI particularly Labour market conditions are into the manufacturing, services, expected to remain positive in Balance of Payments in 2011 and oil and gas sectors amidst 2011 with continued expansion the favourable economic outlook. of employment growth especially The current account surplus is Meanwhile, direct investment in sectors related to domestic projected to increase mainly on abroad is also expected to demand. The unemployment rate the back of higher trade surplus as increase to capitalise on is projected to remain at 3.3% of robust commodity prices and fi rm new business opportunities the labour force. The favourable domestic demand are expected in tandem with the national outlook will also be accompanied to result in continued growth in agenda to develop local, regional by increased wages thus sustaining gross exports and imports, while and global champions. sentiment and private consumption the fi nancial account is expected to activity during the year. benefi t from further increase in FDI Infl ation Outlook infl ows with the continued favourable Macroeconomic Policies economic outlook for the region. Headline infl ation to average 3.0 - 3.5% in 2011 infl uenced by Year 2011 focuses on enhancing • Gross exports are expected supply factors such as higher global the welfare of the people, containing to be supported by sustained commodity prices especially for food infl ation and further encouraging regional demand for resource- and energy, and further adjustments the private sector to lead economic based products and high to domestic administered prices. growth. Fiscal policy in 2011 commodity prices, as well as Demand pressures likely to remain will be pursued in line with the moderate demand for E&E modest in line with the steady national aspiration and agenda products arising from global demand for new products namely smart phones, tablets and other consumer electronic gadgets, audio-visual equipment such as fl at panel televisions and Blu-Ray disc players/recorders.
2011 focuses on enhancing the welfare of the people, containing infl ation and further encouraging the private sector to lead economic growth
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of transforming Malaysia into a developed and high-income economy by way of facilitating and enabling a higher degree of private sector participation. The projection of a lower fi scal defi cit of 5.4% of GDP (2010:-5.6% of GDP) and a series of further efforts to contain fi scal expenditure in 2011 refl ects on the Government’s move to gradually reduce its direct role in economic building and to encourage the private sector to become the main driving force for economic growth.
To accomplish this, the Government has underlined several strategies that are being pursued under the Tenth Malaysia Plan (10MP), seven National Key Result Areas (NKRAs) In addition, efforts during the does not increase to levels that and the 12 National Key Economic year will also continue to be will undermine economic activity Areas (NKEAs). Budget 2011 has devoted to enhancing the and erode economic welfare. also provided a further impetus existing public delivery system in to the efforts of reinvigorating order to facilitate more effi cient With the economy fi rmly on a private investment and to boost transactions between the private steady growth path, Bank Negara domestic demand, outlining among sector and Government agencies; Malaysia (BNM) raised the Overnight others, the three key initiatives: intensifying the development Policy Rate (OPR) to 3.00% on of human capital; establishing 5 May 2011. At the current OPR • Establishing public-private a National Wage Consultation level, the stance of monetary policy partnerships to implement Council to determine fair wages that remains supportive of growth. Government development commensurate with productivity; The future monetary policy stance projects through private and enhancing the welfare of all depends on the assessment of sector funding; Malaysians namely those from the the risk to growth and infl ation disadvantaged groups. These will prospects. While it is important to • The identifi cation of several be done by eradicating hardcore provide depositors positive real high-impact development and urban poverty through returns on their savings, low real projects to further attract private increase home ownership and interest rates also poses the risk sector investment, such as expanding public health facilities. of excessive risk taking behaviour, the Kuala Lumpur International the disintermediation of funds from Financial District (KLIFD) and Against an increasingly complex safe assets, like deposits, into more Mass Rapid Transit (MRT); and environment due to the continued risky investments in a search for uneven global economic growth, higher yields, and potentially spur • The implementation of measures high global liquidity, volatile capital the build-up of excessive leverage. designed to enhance the fl ows, and elevated commodity sources of private sector prices, monetary policy in 2011 will BNM will also be carefully monitoring fi nancing, including measures to emphasise on containing the upside and managing the signifi cant capital revitalise both the capital market risks to infl ation, and to support the fl ows, which due to its large size; and venture capital industry. sustainable growth of the economy. can create sharp movements in the Necessary adjustments will be exchange rate within a short period undertaken to ensure that infl ation that could in turn be detrimental to
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emerging economies like Malaysia. Excessive fl ows can also lead to a sharp escalation in domestic asset prices, whereby, when these fl ows reverse, can collapse, and in turn create negative wealth effects. A pre-emptive measure undertaken to manage the risk of an excess build-up of liquidity is the raising of the Statutory Reserve Requirement (SRR) ratio in three steps from 1.0% in March 2011 to 4.0% effective 16 July 2011.
On 5 July 2011, the Government announced six Strategic Reform Initiatives (SRIs), the second critical components of the ETP in addition to the 12 NKEAs to boost its global competitiveness. The six SRIs are derived from the eight SRIs that were highlighted in the ‘NEM for Malaysia Concluding Part’ publication dated 3 December 2010. The ETP has been conceptualised to have two key thrusts, namely focus, through the 12 NKEAs, and competitiveness, to be delivered by the SRIs. The framework for the economic transformation is now complete with the comprehensive SRIs being put in place. The pursuit of economic growth complemented with policy reforms will position Malaysia to compete in the global arena.
Chart 1.1: National Transformation, Economic Transformation Programme and Strategic Reform Initiatives
NATIONAL TRANSFORMATION ECONOMIC TRANSFORMATION PROGRAMME & FRAMEWORK STRATEGIC REFORM INITIATIVES
1 MALAYSIA NEM 8 Strategic Grouped under the SIX Strategic Reform Reform Initiatives Initiatives GTP ETP Government’s Human Capital Public Finance Role in Development 12 National Key Business Economic Areas International 10th & 11th Malaysia Plan Public Service Narrowing Standards & Delivery Disparities Liberalisation
12 National Key Economic Areas Wholesale & Greater Kuala Lumpur Oil, Gas & Energy Financial Services Retail
Palm Oil Tourism Electronics & Electrical Business Services
Communications, Content & Education Agriculture Healthcare Infrastructure
Source: Performance Management and Delivery Unit (PEMANDU), Prime Minister’s Department
As of September 2011, under the ETP, 100 initiatives have been announced under the various NKEAs including three under the SRIs of NEM, with an estimated investment commitment of RM171.2 billion, Gross National Income of RM228.6 billion and over 372,361 new jobs to be created.
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SMEs in the Advanced and Emerging 20 Economies in 2010
Performance of SMEs in Malaysia in 2010 21 Box Article: Survey on SMEs in 2010 24
Outlook for SMEs in 2011 28
76225 SME AR 2010n11.indd 17 11/10/11 2:24 PM 76225 SME AR 2010n11.indd 18 11/10/11 2:24 PM CHAPTER 2 SME Developments and Outlook 19 SMEs in Malaysia continued on their recovery path in SME 2010. Real value added of SMEs expanded by 8.4%, well Developments within the growth forecasts, supported by expansion in all economic sectors. During the recent global fi nancial crisis, and Outlook Malaysian SMEs had remained resilient to record positive growth. Early measures by the Government to stimulate SME activities, including two fi scal stimulus packages and monetary measures helped to soften the impact on local SMEs, especially in terms of employment and access to fi nancing. Employment and productivity growth of SMEs also continued to exceed that of the large enterprises. Outlook for SMEs in 2011 would however depend largely on external developments given the current concerns on weaker-than- expected performance in the advanced economies due to escalating structural weaknesses in many countries, and the ensuing turbulence in the fi nancial markets. Barring any unexpected developments, value added growth of SMEs is expected to be in the range of 5.5 - 6.0% in 2011.
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and public-private cooperation to ensure the constant and uninterrupted process of SME growth and innovation. The APEC SME Economic Crisis Monitor reported that small business employment creation continued to be sluggish in 2010 and that 41% of small businesses could not get adequate fi nancing. The Summit went on to agree that the recovery process from the fi nancial crisis had been largely attributed by the stimulus measures implemented in a number of regional economies.
SMEs in the Advanced and Emerging Economies in 2010 In the European Union (EU), SMEs continue to be the backbone of the The global economic recovery has real Gross Domestic Product economy, providing employment been uneven depicted by slow (GDP) growth of 0.5% during for almost 90 million Europeans. growth in the advanced economies the fourth quarter of 2010. Net The global fi nancial crisis however, and fi rm recovery in the emerging exports and private consumption had caused severe job losses of markets. The World Bank report were the main contributors, estimated 3.25 million jobs among indicated that developing countries partly offset by an unwinding of SMEs in the period 2009 - 2010, as have increasingly provided the inventories. This reverses the opposed to creation of employment growth impetus to help steer pattern in earlier quarters whereby opportunities for 9.4 million people the global economy out of the inventory-rebuilding had contributed in the period 2002 - 2008. The EU 2008/09 crisis. Accordingly, SMEs positively to GDP growth and net therefore supports the development in emerging economies particularly exports had contributed negatively. of dynamic clusters as catalysts of those in Asia, fared better compared For 2010 as a whole, private change and the introduction of a to some of their counterparts consumption emerged as a whole new European Cluster Excellence in the advanced economies. the main driver of real GDP growth, Scoreboard that should help to contributing 1.2 percentage points better understand factors that SME business was sustained by to the overall 2.9% growth. drive cluster development and fi rm domestic demand amidst specifi c framework conditions the improvement in employment The main challenge facing the that are conducive to support conditions and higher disposable governments in the OECD area world-class clusters in Europe. incomes. The World Bank report was managing debt and fi scal This is expected to assist SMEs, also emphasised that in the wake issues amidst moving from a especially in emerging areas, to of the crisis, it was apparent that policy-driven recovery towards develop and integrate cutting-edge all economies needed to boost self-sustained growth. This includes technologies, and help them evolve private sector participation in SMEs that make up 97% of fi rms into international companies. At economic building and to develop in the OECD countries which the European Cluster Conference supportive policies that would not contribute 40 - 60% of GDP and in September 2010, the EU called only strengthen SME clusters but up to 70% of employment. on European clusters to also promote SMEs into becoming work with universities and highly world class companies. At the APEC SME Summit 2010 innovative SMEs which would held in Yokohama, Japan in provide an excellent business The Organisation for Economic November 2010, member countries environment for innovation and Co-Operation and Development underlined the importance of for internationalisation of SMEs. (OECD) region meanwhile recorded government support measures
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Performance of SMEs in Malaysia in 2010 Overview
The latest statistics indicate that SMEs constitute 99.2% of the total In 2010, GDP business establishments, and contribute about 32% of GDP and 59% of total employment. This year’s SME Annual Report releases new time growth of SMEs series statistics on employment and productivity for SMEs. Generally, rebounded to SMEs have performed favourably in recent years in terms of value added, 8.4% higher employment and productivity. The Department of Statistics Malaysia (DOSM) is currently undertaking the 2011 Economic Census which than the overall includes SMEs and is expected to be completed by June 2012. GDP growth of 7.2% Analysis on SME Performance in 2010
Analysis derived based on the time series data from DOSM from 2001-2010 shows that the value added growth of SMEs has consistently outperformed the overall value added growth for the country since 2004. Value added growth of SMEs reached its peak in 2007 at 10%, before moderating to 6.4% in 2008 and continued to move downwards to 0.4% in 2009 following the global fi nancial crisis. In 2010, value added growth of SMEs rebounded to 8.4% higher than the overall GDP growth of 7.2% (refer to Chart 2.1). For the period 2004-2010, the average annual growth rate of SMEs was 6.8%, above the 4.9% average growth in the overall economy. As a result, SME contribution to GDP increased from 31.5% in 2009 to 31.9% in 2010 (2003: 28.1%).
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Sectoral Review Chart 2.1: SME Valued Added and Overall GDP Growth (Annual change in %) The growth in SME value added
in 2010 was contributed by all sectors, with SMEs in each of these sectors recording higher growth rate compared to that of the overall sectors (refer to Table 2.1). However, the highest growth was seen in the manufacturing sector, followed by construction and services sectors.
The strong performance of SMEs in the manufacturing sector was underpinned by robust growth of non-metallic mineral products, L basic metal and fabricated metal -2 products (23.5%; 2009: -7.3%) 6]LYHSS.+7.YV^[O :4,.YV^[O following the implementation of e: estimate Government stimulus packages. Source: Department of Statistics, Malaysia, and SME Corporation Malaysia
Similarly, Government policy to Table 2.1: SME Value Added and Overall GDP Growth by ensure that most public sector Key Economic Activity in 2010 (constant 2000 prices) infrastructure projects benefi ted the small and medium contractors resulting in higher value added Year 2010 (% annual change) growth in the construction sector in SME Value Added Overall GDP 2010. The higher growth of SMEs Growth Growth in the services sector was driven by Agriculture 5.0 2.1 the distributive and motor vehicles trade, transport and storage, and Manufacturing 11.8 11.4 accommodation and restaurants Construction 8.6 5.1 sub-sectors. In the case of the Services 7.1 6.8 agriculture sector, SMEs in the food related activities, namely farmers Total 8.4 7.2 and fi shermen benefi ted from higher Source: Department of Statistics, Malaysia growth in livestock rearing; fi shing and production of agricultural Employment Conditions of SMEs in 2010 cash crops, such as paddy, vegetables, fruits and fl owers. Since 2003, contribution of SME employment growth had SMEs to total employment has signifi cantly outperformed the been increasing as a result of the overall growth in employment. steady increase in employment by SMEs compared with that The strong employment growth of of large enterprises. In 2010, it SMEs began in 2007 at 8.3%, when is estimated that the share of the value added growth of SMEs employment by SMEs increased was at its peak (refer to Chart 2.2). close to 60% (59.5%; 2003:56.4%). Most of the increase has been observed during the last four years (2007-2010), whereby the
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Chart 2.2: SME Employment and Total Employment Growth Productivity of SMEs in 2010 (Annual change in %) In 2010, the average productivity of
SMEs is estimated at RM46,900 per employee, about one-third of the
average productivity of large fi rms
of RM147,623 per employee (refer to Chart 2.4). This is due to large
scale of employment of unskilled workers by SMEs particularly in the labour-intensive activities. Nevertheless, latest data from 0 L L DOSM showed that productivity of SMEs has been improving in recent -2 ;V[HS,TWSV`TLU[ :4,,TWSV`TLU[ years. The average growth rate of SME productivity in recent years e: estimate Source: Department of Statistics, Malaysia, and SME Corporation Malaysia has been increasing at a slightly higher rate compared with large Chart 2.3: Employment of SMEs to Total Employment (% share) companies. The trend continued in 2010 refl ecting 5.9% growth in productivity of SMEs versus 5.5%
for large fi rms (refer to Chart 2.5). In the course of time, the gap between
the productivity of large fi rms has been reducing from 3.3 times higher than SMEs in 2003 to 3.1 times in 2010. This was in part due to various programmes and initiatives undertaken by the Government to encourage SMEs to invest in machinery and equipment, and the training programmes for greater adoption of technology to increase L L effi ciency and productivity levels. e: estimate Source: Department of Statistics, Malaysia, and SME Corporation Malaysia The year also saw a robust growth of SMEs in the construction, manufacturing and services sectors that absorbed a larger number of skilled and unskilled workers to support the growing demand in these sectors. As a result, there was a marked increase of 271,812 employees by SMEs in 2007 (2005-06: average of 133,338 per year) resulting in the share of SME employment to total employment increasing from just under 57% in 2006 to 58.2% in 2007 (refer to Chart 2.3).
In 2010, SME employment growth is expected to have continued to exceed that of the total employment in line with the higher GDP growth of SMEs compared with the overall GDP. SME employment is estimated to have recorded a growth of 2.4%, above the 1.9% estimated growth in the total employment. SME employment growth had picked up in line with the recovery in economic activities.
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Chart 2.4: Productivity Level of SMEs and Large Firms Survey on SMEs in 2010 (RM per worker) Since 2008, SME Corporation 147,623 150 142,989 (SME Corp.) Malaysia has been 136,026 139,063 139,979 132,640 132,322 conducting bi-annual surveys on 122,701 120 SMEs as part of the surveillance work to monitor the performance
90 and to identify the current issues faced by SMEs. The survey is comprehensive covering SMEs in 60 44,273 46,900 40,717 41,037 42,919 43,584 44,442 all regions including East Malaysia. 37,195 In 2010, with the assistance of 30 Bank Negara Malaysia, two surveys were conducted in the fi rst and 2003 2004 2005 2006 2007 2008 2009e 2010e third quarters of the year. The assessment was on the current Large Firms SMEs quarter performance and near-term e: estimate business expectations of SMEs; Source: Department of Statistics, Malaysia, and SME Corporation Malaysia trends pertaining to human capital development, access to fi nancing, Chart 2.5: Productivity Growth of SMEs and Large Firms investment, R&D spending, linkages (Annual change in %) with other companies; as well as key constraints to business.
First Quarter 2010 The Survey covering a total of 3,264 respondents indicated that 62% of respondents were affected by the global fi nancial crisis. Of these, 23% had fully recovered by 2009, while the remaining expected 0 the recovery to take place in the L L second half of 2010. The Survey -2 also highlighted that the three most important issues facing SMEs were -4 3HYNL-PYTZ :4,Z increase in raw material prices, rising overhead costs and cash e: estimate fl ow problems. The Survey also Source: Department of Statistics, Malaysia, and SME Corporation Malaysia revealed that labour shortage was prevalent among SMEs across all sectors and SMEs undertook measures to address the problem through increased automation, offer higher remuneration and benefi ts to domestic employees and increase the selling price of products and services. While majority of the respondents acknowledged that they would be affected by the Government’s measures to
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remove subsidy, many of them indicated not knowing the impact if the Goods and Services Tax Chart 1: Business Performance in 3Q 2010 versus 2Q 2010 (GST) were to be implemented.
Third Quarter 2010
The Survey covering 2,530 respondents showed that SMEs continued to recover. About 76% of the respondents reported an improvement in business performance compared to the second quarter of 2010 (1Q 2010 survey: 66% reported improvement compared to 4Q 2009). SMEs surveyed in the ;V[HS 4HU\MHJ[\YPUN :LY]PJLZ (NYPJ\S[\YL third quarter of 2010 were also more optimistic on the business 7LYJLU[HNLVM:4,ZL_WLYPLUJLKIL[[LYI\ZPULZZWLYMVYTHUJLPU outlook despite an environment 8]Z8 of rising business costs. 7LYJLU[HNLVM:4,ZL_WLYPLUJLKIL[[LYI\ZPULZZWLYMVYTHUJLPU 8]Z8 Total sales growth moderated Source: SME Corporation Malaysia on a year-on-year basis but still remained double-digit at 10.4% Chart 2: SME Performance versus Real GDP from 17.7% in the previous (Annual change in %) quarter. More than half of the respondents (63%) experienced an increase in sales during the
quarter under review compared with the preceding quarter, of which majority cited an increase of up to 5%. In particular, tourism- related services and manufacturing sub-sectors such as transport equipment, other resource-based and furniture and parts industries
enjoyed high sales increase. In terms of exports, 42% of respondents that catered to the 8 8 8 8 external market experienced an 9LZWVUKLU[Z:HSLZ.YV^[O .+7PUYLHS[LYTZ increase in sales compared to the preceding quarter. These mainly Source: Department of Statistics, Malaysia, and SME Corporation Malaysia involved SMEs in the rubber products; chemical and chemical products; food, beverage and tobacco; and wood and wood-based products.
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Table 1: SME Performance in Key Business Areas during 3Q 2010 (% share of respondents)
Same Decreased Increased Total Share Performance Sales Turnover 20.4 16.8 62.8 100 Exports 21.0 37.1 41.9 100 Production 16.6 27.9 55.5 100 Profi t Margin 17.9 32.3 49.8 100 Average Selling Price 12.1 41.9 46.0 100
Source: SME Corporation Malaysia
More than half the number of respondents (56%) had increased production during the third quarter, while at the same time, 46% of respondents increased the selling price of goods and services, particularly those in the agriculture sector and related industries that benefi ted from the rising global prices in commodities. These indicators pointed towards an improving business environment and that economic recovery was underway.
Another positive indicator was that 45% of respondents reported an increase in new orders / bookings of products and services, mainly SMEs involved in the production of rubber products, agriculture crops, furniture and parts as well as providing logistics services. Another 42% of respondents recorded the same amount of orders as in the previous quarter.
A total of 99.6% of the respondents were confi dent that they would remain in operation over the next six months, with: • 40% introducing new products/services; • 32% expanding their branches; • 30% planning to increase number of employees; • 18% diversifying into new areas in Malaysia; and • 13% expanding to other countries.
SMEs participating in the Survey reported that increase in raw material prices, rising overhead cost and cash fl ow problems continued to remain as key challenges in the third quarter of 2010. About one-third of respondents cited that these factors combined with the initial high cost of investment, lack of Government incentives and shortage of skilled labour had impeded SME investment in new assets, which only grew by 5.5% in 2010 as compared to 18.4% in 2009.
Respondents said these factors have resulted in the cost of doing business spiraling upwards, compounded by both internal and external constraints. Other constraints to business operation and growth of SMEs included: • Cost of fi nancing (38%); • Economic policy uncertainty (33%); • Macro-economic instability (32%); • Tax rates (29%); and • Access to domestic credit (28%).
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Chart 3: Key Issues Faced by SMEs during 3Q 2010
9PUNNP[MS\J[\H[PVU
+PMMPJ\S[`[VJVWL^P[OPUJYLHZLPUKLTHUK
3HIV\YZ\WWS`PZZ\L
3HIV\YX\HSP[`ZRPSSPZZ\L
9LK\J[PVUPUKLTHUK
3HJRVML_[LYUHSMPUHUJPUN
+LSH`PUWH`TLU[JVSSLJ[PVU
*HZOMSV^WYVISLTZ
9PZPUNV]LYOLHKJVZ[Z
0UJYLHZLPUJVZ[VMYH^TH[LYPHSZ
VMYLZWVUKLU[Z
Source: SME Corporation Malaysia
Table 2: Percentage of Respondents that Cited the Three Most Important Issues (%)
Manufacturing Services Agriculture Rising raw materials costs 62.9 50.0 55.3 Rising overhead costs 55.0 50.4 44.7 Cash fl ow constraints 40.0 35.4 42.1
Source: SME Corporation Malaysia
During the third quarter of 2010, SMEs continued to have access to external fi nancing, particularly from fi nancial institutions which remained as the key source of fund provider, with the approval rate of 85%. Besides fi nancing from banks and development fi nancial institutions (83%), the other sources of external fi nance to SMEs were shareholders / business owners’ funds (45%), retained earnings (34%), grants and other fi nancing from Government agencies (24%) and borrowings from family and friends (18%). About half of the respondents (51%) did not request for new or additional external fi nancing as majority of them did not require it (53%). The Survey also showed that 36% of respondents also benefi ted from Government fi nancial assistance such as soft loans and matching grants as well as trainings, seminars, conferences and other outreach programmes.
The survey revealed that a point of concern was that majority of SMEs (58%) do not undertake any form on research and development (R&D) activities in their company. About 32% of respondents undertake R&D, mainly by those in the manufacturing sector. For companies that do conduct R&D activities, majority of them (60%) spent less than 1% of the operating cost on R&D expenditure.
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With the global economic outlook Chart 4: Percentage of Total Respondents who Benefi ted from remaining uncertain, SMEs have Government Programmes been bracing themselves against soaring commodity prices, exchange Soft loan-financial assistance 36.4% rate volatility, slowing international Matching grant-financial assistance 36% trade, as well as escalating cost of
Trainings, seminars & workshops 35.8% doing business. Malaysian SMEs
Marketing & promotion activities by Govt. 23.1% should prepare for plausible risks
Govt. websites, portals & TV programmes 21.6% and for those who are exporting,
Other tax incentives / tax exemptions 21.3% should also consider taking
Business advisory services / one stop centre 21.3% risk mitigation measures where possible such as hedging and Govt. publications, pamplets, brochures, etc. 19.1% trade insurance. The imbalances Pioneer status / investment tax allowance 16.7% in the current global recovery with Physical infrastructure / business premises by Govt. 16.1% shifting of the economic power to % of respondents emerging economies particular in Source: SME Corporation Malaysia Asia may appear on the surface to be advantageous to countries The survey also revealed that only 3% of the respondents had fully like Malaysia, while the potential automated or mechanised their operations, while half of the respondents weakness in global growth may also either adopted semi-automation or semi-mechanisation. Again imply less trade and investment automation was more prevalent among SMEs in the manufacturing opportunities available for emerging sector. countries. At the same time, Malaysian SMEs would also face Chart 5: SMEs Involved in R&D Activities competitive pressures from the larger regional economies such as 9 +^P[O\UP]LYZP[`VYYLZLHYJOPUZ[P[\[L China, India and Indonesia that have
9 +PUWHYLU[JVTWHU` the advantage of scale, in terms of market size and cover cost.
6[OLYZ Amidst the numerous challenges 6\[ZV\YJL9 +[V[OPYKWHY[` and what remains a volatile global economic environment, the majority 0UOV\ZL9 + of Malaysian SMEs held fi rmly to a positive outlook on business growth +VUV[JVUK\J[9 + moving forward. This is supported by the confi dence of seeing the 5VVMYLZWVUKLU[Z global economy gaining momentum Source: SME Corporation Malaysia recovering from the crisis. Moving ahead, 64% of respondents surveyed (third quarter of 2010) had a positive outlook on business growth, while of even greater signifi cance was the fact that 68% of respondents in the agriculture sector were confi dent of a more prospective business environment.
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76225 SME AR 2010n11.indd 28 11/10/11 2:24 PM CHAPTER 2 SME Developments and Outlook 29 The challenging operating environment endured over the last two In line with the years has signifi cantly strengthened the resilience of Malaysian SMEs. While local SMEs continue to tread cautiously due to global expectations of uncertainties, at the same time they are adjusting to changes and are more moderate just as determined to explore business opportunities, introduce new growth of 5.0 - 5.5% products and services, open new branches and outlets, increase full- time employees, diversify into new areas and expand abroad. in 2011 for the overall economy, In line with the expectations of more moderate growth of 5.0 - 5.5% in it is projected 2011 for the overall economy, it is projected that value added growth of SMEs would be in the range of 5.5 - 6.0%. SME growth is expected that value added to be supported by fi rm domestic demand and continuous activity growth of SMEs in the services sector, particularly in the distributive trade, logistics as well as fi nancial, business and private services sub-sectors. would be in the range of 5.5 - 6.0%
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76225 SME AR 2010n11.indd 29 11/10/11 2:24 PM Section II: SME Development Policies and Programmes
Chapter 3: Policies on SME Development 33
Chapter 4: Strengthening Enabling 45 Infrastructure
Chapter 5: Building Capacity and 53 Capability
Chapter 6: Enhancing Access to Financing 69
76225 SME AR 2010n11.indd 30 11/10/11 2:24 PM Chapter 3: Policies on SME Development
National SME Development Council and 34 Key Initiatives Box Article : SME Masterplan (2012-2020) 35
Highlights of SME Development 38 Programmes in 2010
SME Development Programmes in 2011 39
76225 SME AR 2010n11.indd 31 11/10/11 2:24 PM CHAPTER 3 Policies on SME Development 33 While the structured approach to SME development has Policies helped in the past to accelerate the growth of SMEs, the on SME next phase would focus on integrating SMEs into the economic mainstream to become an important engine of Development growth in the New Economic Model. This is no ordinary task given that the road ahead for SMEs is surrounded by challenges such as uncertainty in the external environment and pressures from globalisation and market liberalisation. Policy focus would be to enhance the capacity and capability of SMEs towards building long-term resilience and competitiveness. The SME Masterplan is being developed to achieve these goals through more targeted and result-based approach to SME development.
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National SME Development Council and Key Initiatives SME development was accorded • Formulation of the SME • Adoption of an result- national priority with the development framework with based approach in SME establishment of the National SME three key strategic thrusts, development initiatives. Development Council (NSDC) namely strengthening the in 2004. Chaired by the Prime enabling infrastructure, building Another key milestone was the Minister, the high-powered Council capacity and capability of endorsement of the First Phase comprising members from more domestic SMEs, and enhancing of the SME Masterplan (2012- than 15 key Ministries and agencies access to fi nancing with a 2020) at the 11th NSDC meeting is responsible for providing the yearly plan of programmes in April 2011. The Second Phase strategic direction and formulation under the SME Integrated of the Plan is currently being of SME development policies for Plan of Action or SMEIPA ; undertaken and is scheduled to the country. The NSDC has laid the be completed by end-2011. foundation on SME development • Strengthening of the institutional policies by setting clear objectives framework and development with long-term goals that helped to of comprehensive database; raise the contribution of SMEs to the economy from 29.0% in 2005 to • Establishment of a dedicated 31.9% in 2010 (2003: 28.1%). Key agency, namely SME achievements of the NSDC include: Corporation (SME Corp.) Malaysia to streamline, • Adoption of a standard defi nition coordinate and monitor SME for SMEs which is currently development initiatives; used by all Ministries and Agencies implementing SME • The establishment of special development programmes; SME units in each of the Ministries and Agencies involved in SME development; and
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SME Masterplan (2012-2020)
The SME Masterplan will chart the policy direction of SMEs in all sectors through the year 2020 towards achieving a high income nation by 2020 in line with the New Economic Model (NEM). The vision is to create globally competitive SMEs that enhance wealth creation and contribute to the social well-being of the nation. The SME Masterplan is divided into two phases:
• The First Phase comprising a new SME Development Framework as well as broad policies and strategies to achieve the NEM goals; and • The Second Phase of the Masterplan is to look into the specifi c action plans and the monitoring mechanism.
The Masterplan focuses on creating an enabling ecosystem to accelerate the growth of SMEs through productivity gains and innovation and to bring them to the next level of development. The vision of creating globally competitive SMEs is crystallised through the four strategic goals, namely:
1. Increase business formation to facilitate business dynamism through a constant stream of new entrants into the market; 2. Intensify formalisation to incentivise innovation, growth and promote fair competition; 3. Raise productivity of SMEs to boost incomes and raise standards of living; and 4. Expand number of high growth and innovative fi rms as they generate a substantial share of employment and output in the country and to grow these companies to be regional and global champions.
To support the strategic goals, the Masterplan has identifi ed six focus areas: 1. Encourage greater innovation and technology adoption among SMEs; 2. Enhance human capital and entrepreneurship development among SMEs; 3. Ensure that creditworthy SMEs have access to fi nancing for working capital and investment; 4. Expand access to market for goods and services produced by SMEs; 5. Ensure the legal and regulatory environment is conducive to the formation and growth of SMEs, while protecting the broader interest of society; and 6. Improve the infrastructure needed by SMEs to operate effectively.
Achieving the SME development goals will signifi cantly alter the economic structure of the overall Malaysian economy. SME Corporation Malaysia as the Central Coordinating Agency in SME development will continuously engage the relevant Ministries and Agencies as well as other stakeholders and the private sector towards achieving the goals of the Masterplan.
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SME Development Policies In the past, policies on SME • Strengthening the Companies (GLCs) are urged to development were articulated in public sector; assume a more important role in the Third Industrial Master Plan and SME development through the the Ninth Malaysia Plan. The New • Creating a transparent provision of business development Economic Model (NEM), Economic and market-friendly services (BDS) to SMEs. The Transformation Programme (ETP) affi rmative action; initiative would also promote and the Tenth Malaysia Plan (10MP) SMEs’ participation in Government would shape the policies going • Building the knowledge procurement as well exploring the ahead requiring a New Framework base infrastructure; non-bank avenues to promote on SME Development to facilitate a access to fi nancing by SMEs. On quantum leap in SME growth and • Enhancing the sources technology and ICT adoption, to achieve the aspirations of high of growth; and focus will be towards enhancing income nation status by 2020. connectivity of businesses • Ensuring sustainability and building SMEs through The NEM consisting of Part 1 and of growth. broadband expansion policies. Part 2 (Concluding Part), include a raft of economic measures to The concluding part of the NEM In enhancing innovation, policies transform Malaysia to become a presents greater details on the will be focused on developing fully developed nation by 2020. policy measures embedded Government and GLC procurement The NEM is based on the three in the eight SRIs that would policies that support local innovative guiding principles: high income, propel Malaysia into becoming products and services, establishing inclusiveness and sustainability. a high income, sustainable and institutes of higher learning as centre The high income principle strives inclusive economy by 2020. of excellence for R&D collaboration for per capita income doubling The concluding part covers with the private sector, consolidation from the current USD6,700 to fi ve key focus areas, namely: and merging of national enterprises USD15,000 by 2020, sustainability to leverage on greater economies of will address present needs without 1. Transformation through scale, encouraging open innovation compromising on the future reinvigorating the system to foster knowledge generation, while inclusiveness private sector; sharing between fi rms, public, ensures that communities are able research institutions and public; to fully benefi t from the country’s 2. Enhancing innovation; and aligning innovation support wealth. Representing 99% of policies to extract greater value total business establishments, 3. Public sector transformation; from intellectual property (IP). SMEs would defi nitely serve as an important agent towards 4. Intensifying human capital Meanwhile, transformation of transforming Malaysia into a development; and the public sector would look into high-income and innovation-led addressing bureaucratic reforms economy. Part 1 of the NEM 5. Narrowing disparities. to further enhance effi ciency and unveiled eight Strategic Reform reduce cost of doing business. Initiatives (SRIs) namely: Transformation through Specifi c measures would also be reinvigorating the private undertaken to support investors • Re-energising the private sector; sector will see greater effort in and in implementing broad- integrating enterprises into the based tax for revenue and fi scal • Developing a quality workforce national supply chain to support stability particularly through the and reducing dependency the creation of home-grown implementation of the Goods and on foreign labour; multinational companies (MNCs) Services Tax (GST). Acknowledging that will serve towards enhancing the importance of human capital • Creating a competitive Malaysia’s global brand. In this in realising the national agenda, domestic economy; context, the Government Linked the Government would intensify
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and the impact and result of these programmes. It will also enable SME Corporation Malaysia, as the Central Co-ordinating Agency, to monitor the implementation and performance of SME development programmess carried out by the various Ministries and Agencies.
In addition, beginning 2012, SMEIPA will be adjusted to the new SME Development Framework proposed in the SME Masterplan. It basically enables greater cooperation among the Ministries and Agencies to streamline and coordinate SME programmes, continually review their roles and responsibilities pertaining to SME development, develop sectoral policies aligned to the overall SME policies and to human capital development via the • Establishing a Green Lane track and monitor the effectiveness establishment of the National Human for procurement; of programmes. For 2010 and Resources Centre (NHRC) to provide 2011, SMEIPA continued to strategic HR support to the business • Promoting skills upgrading; focus on the earlier framework community, particularly SMEs that covering the three strategic thrusts often have limited capacity in such • Advancing the agenda of strengthening the enabling area. The Government also hopes to develop Bumiputera infrastructure; building capacity and to narrow disparities by establishing entrepreneurs; capability of domestic SMEs; and specifi c programmes for Bumiputera enhancing access to fi nancing. SMEs as well as focusing on • Establishing a social capacity building programmes justice policy; and that are geared towards the 12 TERHAD National Key Economic Areas • Enhancing labour (NKEAs) identifi ed under the NEM. market effi ciency.
Meanwhile, under the 10 MP, SMEs The Annual SME Integrated Plan are to be developed into a strong of Action (SMEIPA) PELAN TINDAKAN engine of growth and innovation BERSEPADU by way of supporting SMEs at an In an effort to enhance monitoring early stage and identifying those of SME development programmes, PKS with the potential of becoming SME Corporation Malaysia has in SME INTEGRATED global players, as well as in 2011 introduced SMEIPA online, PLAN OF ACTION encouraging greater collaboration which is a dedicated portal to between foreign and local SMEs in provide relevant authorities 2011 the areas of modern technology. involved in SME development with This will be supported by: valuable access to information
pertaining to SMEIPA. The portal URUS SETIA MAJLIS PEMBANGUNAN PKS KEBANGSAAN • Enhancing SME access will store information related to to fi nancing; SME development programmes
National SME Development Council SME ANNUAL REPORT 2010/11
76225 SME AR 2010n11.indd 37 11/10/11 2:24 PM CHAPTER 3 Policies on SME Development 38 Highlights of SME Table 3.1: SME Development Programmes in 2010 by Strategic Thrusts Development SMEs RM Programmes in 2010 Strategic Thrusts Programmes Benefi ted (Million) Strengthening Enabling In 2010, the Government 23 6,672 179.8 successfully implemented 226 SME Infrastructure development programmes at the Building Capacity and 165 338,134 717.8 cost of RM7.1 billion benefi ting Capability a total of 614,242 SMEs. As in Enhancing Access to previous years, majority of the 38 269,436 6,256.1 Financing programmes (73%) were for building capacity and capability Total 226 614,242 7,153.7 with a fi nancial expenditure of Source: SME Corporation Malaysia RM717.8 million, while another 38 programmes were to enhance Building Capacity and Capability access to fi nancing which accounted for the biggest sum The bulk of programmes were • Product Development: of allocation at RM6.3 billion. devoted to building capacity A total of 19 programmes The balance 23 programmes and capability, refl ecting the were implemented on were implemented to strengthen importance of enhancing skills, product development which the enabling infrastructure at technical knowledge, capabilities benefi ted 589 SMEs. the cost of RM179.8 million. In and competencies of SME owners terms of the objectives of the and workforce in support of the Enhancing Access to Financing programmes implemented in 2010: Government’s aspiration to become a high-income and knowledge- In 2010, the Government continued • Bulk (135) were implemented based nation. These programmes to ensure that there was suffi cient to enhance the viability of focused on the four main areas: funding available for the purpose SMEs across all sectors, at a of start-ups, working capital and cost of RM4.3 billion benefi ting • Entrepreneur Development: expansion, and therefore, the largest a total of 465,327 SMEs; In support of increasing the allocation of RM6.3 billion or 88% number of SMEs, a total of 59 of total SME development funds • 75 programmes were devoted programmes were focused on for 2010 was channeled towards to promoting Bumiputera entrepreneur development, enhancing access to fi nancing. participation in the SME benefi ting some 134,459 SMEs. A total of 38 programmes were sector. These programmes implemented and these initiatives were implemented at the • Human Capital Development: benefi ted 269,436 SMEs. These cost of RM2 billion, benefi ting Some 35 programmes were include the seven new schemes some 43,836 SMEs; and implemented to enhance introduced during the year. the competency, technical • 16 programmes were knowledge and capabilities Bulk of the programmes in 2010 implemented to develop K-based of SME employees, include providing working capital SMEs, at the cost of RM925.6 benefi tting 101,452 SMEs. for SMEs, which accounted million benefi ting 105,079 SMEs. for 33 programmes with a total • Marketing and Promotion: expenditure of RM5.1 billion. 34 programmmes were carried out to enhance skills to market and promote SME products and services, benefi ting 25,042 SMEs nationwide.
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76225 SME AR 2010n11.indd 38 11/10/11 2:24 PM CHAPTER 3 Policies on SME Development 39 Strengthening the Enabling SME Development Programmes in 2011 Infrastructure
In further strengthening the enabling SME development programmes K-based SMEs; and 56 programmes infrastructure, the Government being implemented in 2011 continue costing RM909 million for carried out 23 programmes at the to be closely guided by the three development of Bumiputera SMEs. cost of RM179.8 million which strategic thrusts. However, the benefi ted some 6,672 SMEs. The orientation of programmes has Building Capacity and Capability programmes were mainly devoted been driven towards result-based towards enhancing the physical objectives. A total of 391,105 In order to enhance productivity infrastructure which included SMEs are expected to benefi t of SMEs and to become globally the development of facilities from 219 programmes planned for competitive, it is imperative that aimed at supporting the business implementation throughout 2011 Malaysian SMEs continually upgrade operations and activities of SMEs. with a fi nancial commitment of their capabilities and technical Other areas of focus include RM5.9 billion. Programmes devoted knowledge in their respective fi elds. enhancing the information and to building capacity and capability In a global economic landscape regulatory infrastructure. Among the will again be the focus of attention in that is evolving so rapidly, Malaysian programmes include the following: 2011, underlining the Government’s SMEs can no longer compete steadfast commitment in on costs, but on higher content • Assisting Bumiputera promoting entrepreneurship and of value-add into their products entrepreneurs with the ownership in moving SMEs up the value and services to remain relevant. and rental of business premises, chain to become integrated into Entrepreneur development and factories, workshops and the regional and global network. continued investment in human procurement of equipment and Some 150 programmes with a capital remain as the two most machineries under initiatives by total cost of RM525.7 million are critical elements in building the the Ministry of Rural and Regional being implemented and expected capacity and capability of SMEs. Development (MRRD), Ministry of to benefi t 54,298 SMEs. A sum of A total of 52 and 30 programmes International Trade and Industry RM5.3 billion (accounting for 90%) with a fi nancial commitment of (MITI), Ministry of Agriculture and meanwhile, has been allocated RM195.5 million and RM118.4 Agro-based Industry (MOA) as towards enhancing access to million will be channeled towards well as Ministry of Finance (MOF); fi nancing, whereby a total of 50 strengthening these two respective programmes have been earmarked, areas. Greater empowerment, • Implementation of the mainly to make available suffi cient however, must be supported by SME Competitiveness funds for start-ups and to support fundamentals and therefore an Rating for Enhancement the expansion and the business allocation of RM90.7 million has (SCORE) to monitor and diversifi cation plans of SMEs. The been made to support SMEs in assess the progress and Government will also implement 19 terms of product development. competitiveness of SMEs; and programmes costing of RM76.8 million to further strengthen the A total of 391,105 • Initiatives by MOA to establish enabling infrastructure. new collection and distribution SMEs are expected centres to assist SMEs in From the total number of to benefi t from marketing their products. programmes, 139 programmes with a fi nancial commitment of RM3.8 219 programmes billion will be chaneled towards planned for enhancing viability of SMEs across implementation all economic sectors; a total of 24 programmes at the cost of RM1.2 throughout 2011 billion has been allocated to promote with a fi nancial commitment of RM5.9 billion National SME Development Council SME ANNUAL REPORT 2010/11
76225 SME AR 2010n11.indd 39 11/10/11 2:24 PM CHAPTER 3 Policies on SME Development 40
Table 3.2: SME Development Programmes in 2011 by Strategic Thrusts
Strategic Thrusts Programmes SMEs benefi tted RM (million) Strengthening the Enabling 19 3,309 76.8 Infrastructure Building Capacity and 150 54,298 525.7 Capability Enhancing Access to 50 333,498 5,303.2 Financing Total 219 391,105 5,905.7
Source: SME Corporation Malaysia
• A sum of RM52.7 million has Enhancing Access to Financing • In supporting the development of been allocated to assist and K-based SMEs, MOF is targeting empower SMEs with a higher From the total allocation of to disburse 50 new loans degree of technology. RM5.3 billion for enhancing amounting to RM500 million to access to fi nance in 2011, 96% provide Syahariah-based project • 31 programmes with an or RM5.1 billion, will be towards fi nancing to local companies allocation of RM66.8 million providing working capital to involved in the ICT, biotechnology will go towards assisting SMEs about 307,748 SMEs. and other technology sectors. in being able to market and promote their services and • MOF via AIM has been allocated • A total of RM230 million has products more effectively. a sum of RM1.4 billion to been allocated under the implement an Initiative Financing Green Technology Financing • 32 programmes are devoted Scheme with the aim to reduce Scheme to promote the green towards developing 16,753 poverty among poor households technology industry. The scheme Bumiputera entrepreneurs. by undertaking economically is administered by Bank Negara viable activities. This scheme Malaysia, the Credit Guarantee • Entrepreneur development is expected to benefi t about Corporation Malaysia Berhad programmes will focus on 296,000 participants. (CGC) and Malaysia Green numerous target groups: Technology Corporation (MGTC). young graduates, unemployed • RM400 million has been graduates, youth, FELDA allocated under the Maritime settlers, women in the low- Fund and will be administered income group, smallholders, by Bank Pembangunan Malaysia Bumiputera SMEs, homestay Berhad for the purpose of operators, farmers, social providing fi nancial assistance aid recipients, single to existing and new companies mothers, technology-based involved in shipping, shipyard entrepreneurs and fi shermen. and maritime-related activities.
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Strengthening the Enabling Infrastructure The total sum RM76.8 million allocated in 2011 under this strategic thrust will be mainly utilised to enhance the physical infrastructure in support of SME businesses. The allocation will be used to fund the purchase of equipment and machinery for SMEs in selected sub-sectors, development of shophouses, distribution and collections centres for SMEs as well as the establishment of six fi sherman’s markets.
• MOA together with the Department of Agriculture is developing a Permanent Food Production Park, built at the cost of RM2.6 million with an area size of 3,187 hectares, and is scheduled for completion in 2011. When operational, the park will be capable of increasing the production of fruits and vegetable to 31,870 metric tonnes.
• In support of Bumiputera participation in the automotive industry, MOF via Perbadanan Kemajuan Iktisad Negeri Kelantan will construct an Automotive Centre in Pengkalan Chepa to provide business premises and workshop equipment to Bumiputera entrepreneurs.
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Highlights of Programmes in 2010 46
Programmes in 2011 48
76225 SME AR 2010n11.indd 43 11/10/11 2:24 PM CHAPTER 4 Strengthening Enabling Infrastructure 45 The growth of SMEs is dependent on a supportive Strengthening and conducive business environment through a Enabling well-developed physical infrastructure and non-physical infrastructure including the regulatory and information Infrastructure infrastructure. Recognising this, the Government remains committed towards strengthening the enabling infrastructure for SMEs by embarking on various initiatives particularly to improve the physical infrastructure through the provision of business premises and the required facilities to complement their needs.
National SME Development Council SME ANNUAL REPORT 2010/11
76225 SME AR 2010n11.indd 45 11/10/11 2:24 PM CHAPTER 4 Strengthening Enabling Infrastructure 46 Highlights of Programmes in 2010 In 2010, the Government spent a total of RM179.8 million to implement • The Collection and Marketing 23 programmes geared towards strengthening both the physical and Centres for Entrepreneur Product non-physical infrastructure for SMEs. Initiatives undertaken covered the (4PU) /Trading House under three core areas, namely physical, regulatory and information infrastructure the Ministry of International with bulk of the programmes (87%, 20 programmes) devoted towards Trade and Industry (MITI), which strengthening the physical infrastructure, while the remaining programmes comprised the formation of two addressed the gaps in the regulatory and information infrastructure. A total collection centres which have, of 6,672 SMEs benefi ted from these programmes. benefi ted a total of 253 SMEs in terms of marketing, distribution and product quality enhancement Strengthening Enabling Infrastructure initiatives. Meanwhile, the Factory 23 Programmes Assistance Scheme by MITI RM179.8 million through SME Bank provided a total of 422 factory space for rent in strategic locations to Bumiputera SMEs;
Physical Regulatory Information • The Business Premises / Infrastructure Infrastructure Infrastructure Workshops / Factories 20 Programmes 2 Programmes 1 Programme Infrastructure Programme by the RM179.49 million RM0.07 million RM0.23 million Ministry or Rural and Regional Development (MRRD) which comprised the construction Source: SME Integrated Plan of Action 2011 of a total of 66 premises for Bumiputera SMEs in the rural Physical Infrastructure areas have enabled these During the year, the Government implemented various programmes to SMEs to operate in a more provide appropriate infrastructure either through construction of new facilities comfortable and hygienic or upgrading of existing premises to support the increasing needs of SMEs. environment complemented by Initiatives were focused on providing SMEs with the appropriate business fully-equipped premises at low premises, factories and collection centres to conduct and expand their and affordable rental. Under the operations. The different categories of physical infrastructure are depicted in Provision of Business Premises Chart 4.1. Programme implemented by the Majlis Amanah Rakyat (MARA), A total of 20 programmes were implemented at the cost of RM179.49 some 142 SMEs benefi ted from million, benefi ting a total of 3,134 SMEs. Among the programmes with new premises and factories signifi cant results include: constructed to increase the participation of Bumiputera • The Halal Product Development Project by the Ministry of Finance (MOF) entrepreneurs in the commercial in collaboration with Perbadanan Kemajuan Iktisad Negeri Kelantan and industrial community; and (PKINK) comprising the establishment of nine manufacturing premises with high capacity machinery and equipment for Halal food production. The project has enabled participating SMEs to enjoy an 80% increase in sales with participants registering income of between RM8,000 and RM10,000 per month. The Ministry through PKINK also helped to establish 41 stalls and kiosks at the seafood-based hawker centres in Kota Baru and Pasir Putih, Kelantan;
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• The Marketing Infrastructure Chart 4.1: Categories of Physical Infrastructure Programme implemented by the Ministry of Agriculture and Agro-based Industry (MOA) through the Federal Agriculture Business Marketing Authority (FAMA) premises Technology which has benefi ted a total of clusters & Commercial 2,138 SMEs by adding value incubators space to their products at farm level through the implementation of good post-harvest practices in grading, packaging and labeling. Feedlots Retail outlets During the year, FAMA has also established 23 new collection and distribution centres to assist agro-entrepreneurs through Physical better distribution, packaging Infrastructure and labeling of their products. Factories Workshops The National Agribusiness Terminal in Ipoh, Perak was also opened in August 2010. Industrial Regulatory and Information Restaurants facilities Infrastructure Centralised Improvements to the existing Manufacturing marketing & regulatory and information premises distribution infrastructure are necessary centres to ensure a holistic approach in strengthening the enabling infrastructure for SMEs. In 2010, Source: SME Integrated Plan of Action 2011 initiatives to enhance the regulatory infrastructure for SMEs were the SME Competitiveness Rating below meanwhile will continue to skewed towards evaluating the for Enhancement (SCORE). As be given hand-holding assistance competitiveness of SMEs which at 31 December 2010, a total of to enhance their capabilities. was aimed at enabling the relevant 5,246 SMEs have been rated, of Ministries and agencies to prioritise which 4.2% were rated four-star, • In 2010, SME Corp. Malaysia areas of importance in future 29.5% rated three-star and the also developed the Micro development programmes. Two balance 66.3% had a rating of Enterprise Competitiveness programmes were implemented in two-star and below. There were Rating for Enhancement 2010 benefi ting some 3,508 SMEs. no companies that scored a (M-CORE) which is a tool fi ve-star rating. Under SCORE, to gauge the performance • MITI via SME Corporation companies that achieve three to of micro enterprises in four Malaysia (SME Corp. Malaysia) fi ve-star ratings are designated areas: business performance continued to intensify efforts as being ready for the export and fi nancial, operations, and to assess and rate the market and will be selected to management capability. As at competitiveness of SMEs based participate in trade missions and 31 December 2010, a total of on their business performance, linkages programmes. SMEs that 101 micro enterprises have been strengths and capabilities under are in the two-star category and evaluated from which 2.9% were
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rated as Level Three, 63.3% rated as Level Two and the remaining 33.6% rated as Level One. A total of 211 SMEs also participated in a series of 13 workshops which encompassed lectures and coaching sessions to SMEs which had completed M-CORE. In an effort to enhance dissemination of information to SMEs, MITI through SME Corp. also published the SME Annual Report 2009/2010 which contained information on SME development including the status, progress and programmes implemented. Programmes in 2011
In 2011, a total of 19 programmes are being implemented to further strengthen the enabling infrastructure for SMEs, with a fi nancial commitment of RM76.8 million. Programmes for the year will be entirely devoted to strengthening the physical infrastructure and is expected to benefi t some 3,309 SMEs. Among these programmes include the Permanent Food Production Park by MOA in collaboration with the Department of Agriculture (DOA), involving development of a 3,187 hectares plantation area at the cost of RM2.6 million which is scheduled for completion this year. Once operational, the Park will be able to increase the production of fruits and vegetable to 31,870 metric tonnes. Meanwhile, six fi shermen markets will be established by the Fisheries Development Authority of Malaysia (LKIM) to encourage more fi shermen to venture into business. This is expected to increases the monthly income of these fi shermen by between 10% to 20%. The Authority will also establish three distribution centres and one collection centre to market aquaculture fi sh.
Other infrastructure programmes to provide business premises for SMEs include:
• The development of 401 industrial lots throughout the country by the Ministry of Industrial Development Sarawak with a fi nancial commitment of RM49.5 million;
• The Cottage Retail Shop programme by MOF in collaboration with UDA Holdings Berhad, which has allocated a total of RM8.2 million to develop 33 cottage retail shops in the rural areas to benefi t some 50 SMEs.
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Highlights of Programmes in 2010 54
Programmes in 2011 59 Box Article: One District One Industry, A Revolutionary 62 Programme For Rural Folks
76225 SME AR 2010n11.indd 51 11/10/11 2:24 PM 76225 SME AR 2010n11.indd 52 11/10/11 2:24 PM CHAPTER 5 Building Capacity and Capability 53 The Government would continue to place high priority Building Capacity on human capital development for Malaysia to realise and Capability its vision of a developed nation status by 2020. Up-scaling of skills and knowledge of workforce and stepping up entrepreneurial capabilities of SME owners will be of paramount importance in raising the overall effi ciency and productivity of SMEs. Human capital development has also become important in the context of trade liberalisation, especially pertaining to the services sector where SMEs have a large presence, and hence need to strengthen their position to compete with foreign players.
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As in the previous years, programmes to develop capacity and capability of SMEs continue to dominate the SME development programmes. In 2010, the relevant Ministries and agencies expended a total of RM717.8 million on 165 programmes. These programmes are divided into the following seven key areas and have benefi tted more than 338,000 SMEs nationwide.
Table 5.1: Key Areas under Building Capacity and Capability
KEY AREAS PROGRAMMES SMEs BENEFITED RM (million) Entrepreneur Development 59 134,459 263.6 Human Capital 35 101,452 137.8 Development Marketing and Promotion 34 25,042 92.6 Product Development 19 589 139.2 Technology Enhancement 83,14781.2 Advisory Services 566,9110.70 Awareness and Outreach 56,5342.74 Total 165 338,134 717.8
Source: SME Integrated Plan of Action 2011
Entrepreneur Development
Entrepreneurship is important • The Training and Advisory • The Entrepreneur Training for a success of any business. programme that enhanced Programme by Majlis The Government continues to the entrepreneurship skills Amanah Rakyat (MARA) undertake various programmes of SME entrepreneurs in the which has benefi ted 2,057 on entrepreneurship development rural areas. A total of 150 Bumiputera youth and adults to generate motivation and foster courses were organised for in encouraging and exposing growth and sustainability of SMEs. some 3,620 entrepreneurs, them to venture into their In 2010, a total of 59 programmes of which 80% agreed that own business as a career. were carried out to promote the training had improved entrepreneur development benefi ting their knowledge and skills; During the year, the Ministry of a total of 134,459 SMEs. Among Women, Family and Community the programmes with signifi cant • The Additional Economic Development (MWFCD) through results were implemented by the Activities (AET) in the Jabatan Pembangunan Ministry of Rural and Regional collaboration with the Rubber Wanita (JPW) also implemented Development (MRRD) which include: Industry Smallholders various entrepreneur development Development Authority (RISDA) programmes for women • The Training and Entrepreneur which has paved the way for entrepreneurs and single mothers. Guidance programme in 1,065 smallholders to obtain an Programmes with signifi cant impact collaboration with Jabatan average household income of include the incubator programmes, Kemajuan Masyarakat (KEMAS) at least RM2,000 per month, namely the Inkubator Keusahawanan which has successfully trained with most participants recording Wanita (I-KeuNITA) and Inkubator 1,023 ex-KEMAS skills trainees an income increase of between Kemahiran Ibu Tunggal (I-KIT) which and rural entrepreneurs to RM200 and RM250; and have provided intensive skills training venture into business;
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and entrepreneurship assistance for 1,172 low-income women and 960 single mothers respectively. A total of 92 training sessions were organised on how to start a business in areas such as sewing, beauty therapy, commercial cooking, crafts, childcare and travel. About 30% of these participants have managed to increase their monthly income after attending the training programmes. In addition, the Ministry also organised the Women Entrepreneurs Development programme and Basic Course in Home Management Other entrepreneur development • The Transfer of Technology which benefi ted a total of 1,850, programmes with signifi cant and Development of Rubber and 390 participants respectively. results include: Smallholders in Sarawak by the Ministry of Plantation Industries Another Ministry which was actively • The short-term courses and Commodities (MPIC) to involved in conducting entrepreneur conducted by the Ministry of increase the monthly income development programmes Higher Education (MOHE) to of rubber smallholders through is the Ministry of Industrial provide alternative career for technology adoption. A total Development (MID) Sarawak and graduates. The programme of 531 smallholders covering Unit Pembangunan Usahawan was organised in collaboration 733 hectares project area had Bumiputera (UPUB) in the Chief with universities and colleges benefi ted from the programme; Minister’s Department. Among the throughout the country and programmes implemented include has managed to attract a total • The Pineapple Plantation the Small and Medium Entrepreneur of 102,563 participants; programme organised by the Development Programme by UPUB Ministry of Agriculture and Agro- which has managed to train 3,072 • The ICT SME Development based Industry (MOA) through entrepreneurs through a total of 47 programme by the Ministry the Malaysia Pineapple Industry training courses held. Meanwhile, of Science, Technology and Board (MPIB) to increase the the MRRD through MARA also Innovation (MOSTI) to develop national pineapple production organised the IBS Skills Training to and grow competitive and involving 9,210 entrepreneurs enhance the knowledge and skills sustainable SMEs in the ICT covering 24,500 acres. The of contractors and their workers in sector. The programme was programme has led to the the Industrialised Building System. held in collaboration with production of 367,500 tonnes A total of 338 participants attended the Multimedia Development of pineapple in 2010; and the training programme of which Corporation (MDeC) through 325 were accredited. Meanwhile, a comprehensive assistance • The Hawkers and Petty Traders MID Sabah also conducted a package involving enterprise Entrepreneurship Training training programme for potential development, mentoring implemented by the Ministry of and new entrepreneurs aimed and coaching, incubation International Trade and Industry to increase entrepreneurship technology and others. A total (MITI) through the Institut and impart technical knowledge of 445 SMEs had benefi ted Keusahawan Negara (INSKEN) and skills to potential and new from the training programme; which conducted 51 training entrepreneurs through the various sessions benefi ting 1,702 courses offered which attracted participants. a total of 2,700 participants.
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Under this initiative, PSMB has undertaken various activities, among which include:
• Train-the-Trainer programme, whereby a total of 21 training sessions were conducted and attended by 339 trainers and training coordinators from Government Ministries and Agencies. To assist these Ministries and Agencies in evaluating the effectiveness of the training they provided, PSMB organised four Evaluation on Effectiveness of Training (EET) Human Capital Development workshop in 2010, which were Towards increasing the pool of (46.6%) employers from the services attended by 62 trainers and skilled workforce for SMEs, the sector. Throughout the year, a total training coordinators from the Government continued its efforts of 626,270 training places with relevant Ministries and Agencies. in implementing programmes to fi nancial assistance of RM317.9 promote the development of skills million were approved and RM269.6 • A series of forums, dialogues and capabilities of SME employees. million of training grants were and meetings to establish In 2010, a total of 35 programmes disbursed. Out of these, 73.1% closer linkages with employers, were implemented in the area or 9,170 employers were SMEs. associations and training of human capital development, providers, and to ensure the benefi ting more than 101,452 To further encourage utilisation of relevancy of training programmes SMEs through enhancement in HRDF among SMEs, PSMB has offered by training providers. competency, technical knowledge, organised various events including In 2010, four dialogues with a skills and capabilities. As in the series of CEO-HRD Talks and total of 198 participants and previous years, most of the initiatives seminars to create awareness a forum with 35 participants were led by the Ministry of Human on the importance of training were organised. A discussion Resources (MOHR) through as well as assistance available. with 19 representatives from its agency, the Pembangunan PSMB also conducted visits to the various associations was Sumber Manusia Berhad (PSMB), premise of employers who had also organised to gather which is responsible to enhance not utilise the HRDF levy. A total feedback on issues faced the knowledge and skills of the of 205 SMEs were visited in 2010 by the industries, particularly workforce through the Human and their utilisation of levy was in conducting and sourcing Resources Development Fund monitored for the following three for training programmes. (HRDF). In 2010, PSMB registered a months. PSMB also organised total of 736 employers, representing a one-day workshop nationwide Other programmes implemented an increase of 48.4% from 496 on training grants applications by MOHR/ PSMB include: employers in 2009. As at 31 and claims procedures, which December 2010, the total number benefi ted 598 participants in 2010. • The Retraining and Skills of employers registered with PSMB was also entrusted by Upgrading programme which PSMB was 12,546, consisting of the National SME Development aims to equip workers with skills, 6,695 (53.4%) employers from the Council (NSDC) to coordinate knowledge, capabilities, technical manufacturing sector and 5,851 and oversee training and human know-how and best practices. resource development for SMEs The programme has managed across all economic sectors. to churn 50,932 knowledgeable and skilled workers;
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• The short-term and part-time areas such as sewing, embroidery Showcase which attracted a total courses to 37,955 participants and handicraft which attracted of 1,793 participants through a from 1,381 SMEs throughout a total of 6,931 participants. series of 29 exhibitions or trade the year which emphasised on fairs organised. The events enhancing the multi-tasking Marketing and Promotion have managed to produce sales capabilities of workers; and amounting to RM31.42 million. Its The viability of a business depends agency, MATRADE also continues • The National Dual Training on how well it markets and to provide assistance for SMEs System (NDTS) programme promotes its products or services. to undertake export development which is in line with the goal of Often, products with good potential activities through RM15 million producing more knowledge- were hampered by the lack of grants channelled to 1,200 SMEs. workers for the industry. The marketing skills and strategy which programme has managed to is common among SMEs. In this Product Development produce 1,298 apprentices, context, efforts in 2010 were of which 62.6% have been focused on providing avenues and Development of new products or offered jobs in related areas facilities for SMEs to embark on services is important to ensure within three to six months marketing and promotion activities, sustainability of a business. In 2010, after completing the training. which had benefi ted some 25,042 the Government implemented SMEs. In the agriculture sector, the 19 programmes to support the In addition, MITI through its agencies Federal Agriculture and Marketing development of new products and conducted various programmes Authority (FAMA) championed the services by SMEs, benefi ting 589 to enhance the human capital initiatives to promote agricultural SMEs. Among the programmes development among SMEs. For produce through the Direct Product with signifi cant results include the instance, SME Corporation (SME Distribution and Plantation Marketing Commercialisation of R&D Fund Corp.) Malaysia provided a total of Contract Programme aimed to (CRDF) by MOSTI through the RM8.8 million training grants under reduce intermediaries and enhance Malaysian Technology Development its Skills Upgrading Programme the value-added to farmers. The Corporation (MTDC) to leverage on to enhance the capabilities of programme has enabled 6,993 science, technology and innovation 8,792 employees of SMEs at the farmers to benefi t from total sales for national development and managerial and technical levels. amounting to RM100 million. wealth creation. The programme Meanwhile, the Malaysia External In addition, FAMA also carried has benefi ted some 119 SMEs and Trade Development Corporation out the Development of Agro- managed to commercialise four (MATRADE) through the Exports based Industry (IAT) Programme intellectual properties. Under its Training Programme also provided involving 4,406 SMEs with 55 E-Content programme, MOSTI has training to 4,817 SMEs throughout new products being branded. completed 26 projects to create the year to enhance their knowledge quality content products for the local in export-related areas. To increase the involvement of and global markets. Meanwhile, the rural entrepreneurs in the fi eld of Ministry of Finance via the Cradle The Ministry of Tourism (MOTOUR) business, the MRRD implemented Fund Sdn Bhd continued to improve meanwhile provided training to 600 a total of 30 promotion activities commercialisation with a total of budget hotel operators and 2,063 to promote and introduce rural 79 ideas being approved in 2010 homestay operators in 2010. The products, benefi ting 1,069 SMEs. under the pre-seed grant scheme number of homestay visitors has MARA also provided a total of and another 18 projects approved also increased from 161,561 in RM400,000 grants for SMEs to under the seed/commercialisation 2009 to 196,472 in 2010. While promote their products and expand grant scheme. Cradle Fund Sdn the Ministry of Women, Family and their market boundary, which Bhd has to date funded 378 ideas Community Development (MWFCD) had benefi ted 1,216 Bumiputera with pre-seed grants amounting through the agency, Jabatan entrepreneurs. Meanwhile MITI has to more than RM35 million. Pembangunan Wanita undertook the provided the platform to promote Jejari Bestari programme to provide and market quality local products training for women entrepreneurs in through its Domestic Industry
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MITI through its Groom Big or Product Quality Enhancement Programme has benefi ted 198 Bumiputera SMEs through increases in quality of their products. A total of 18 seminars were organised throughout the year to enhance and develop the quality of Bumiputera entrepreneurs’ food and beverages products for the domestic and international markets. MOA through MPIB helped to modernise and increase the entrepreneurs’ capacity through mechanisation and automation which raised yield levels and contributed to a 50% increase in production capacity. • The Transfer of Technology Awareness and Outreach Technology Enhancement Seminar by MPIC and the Malaysian Palm Oil Board Access to information on real-time The adoption of new technologies (MPOB) drew participation basis is important for SMEs to is critical to ensure that SMEs from 473 SMEs. The obtain valuable market information, remain competitive and relevant seminars were aimed at business leads and information in the highly challenging market adding value to the Board’s pertaining to the various forms place. However, SMEs often technologies and services of assistance available. Among have limited resources to engage via commercialisation. The the programmes to promote in such initiatives and thus Ministry through the Malaysian awareness and enhance outreach need to be assisted. Taking Rubber Board also organised include the Halal Industry Training cognisance of these limitations, Transfer of Technologies programme organised by MITI the Government continued to programme which benefi ted under its agency, Halal Industry emphasise on programmes to 1,942 rubber smallholders in Development Corporation (HDC). support technology enhancement Sabah and Sarawak: and The programme provides knowledge in 2010 and among these include: on the fundamental of Halal and • The Technology Acquisition its requirements, including halal • The Manufacturing Technology Fund by MOSTI has benefi ted certifi cation and its value proposition Incubator programme by MRRD 15 SMEs from the utilisation which benefi tted 3,300 SMEs. In in collaboration with MARA of foreign technology for the addition, MATRADE also organised a had rented 10 incubators to manufacturing and physical series of briefi ngs and consultations Bumiputera SMEs in 2010, development of existing and which benefi ted 1,407 SMEs. aimed at assisting them to start new products and processes. manufacturing activities by way The programme is aimed at of providing machinery, start- increasing wealth creation up capital and infrastructure and technology content of fi nancing. This programme has Malaysian companies in enabled participating SMEs pursuit of enhancing their to register an yearly average global competitiveness. sales of at least RM60,000:
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Advisory Services
Government support for SME development was also translated through the various advisory services to assist entrepreneurs and these among others include:
• The Resolution of SMEs Advisory and Issues by Bank Negara Malaysia (BNM) which has assisted in resolving 94% of issues received from 549 SMEs during the year by providing information and advisory services on available fi nancing products and facilities via the banking system as well as funds and Programmes in 2011 guarantee schemes provided by it and the Government; and A total of 150 programmes with a Among the programmes expected fi nancial commitment of RM525.68 to produce signifi cant results in 2011 • The TUNAS (Tunjuk Nasihat million are being implemented to under each area are as follows: Sawit) programme by the build capacity and capability of MPIC through the MPOB SMEs in 2011. The programmes • Entrepreneur Development which provided the assistance are expected to benefi t some to 66,384 smallholders on 54,298 SMEs. Entrepreneurship - A total of 11,000 participants how to implement good development will continue to are expected to benefi t agronomic practices; form bulk of the programmes for from the Undergraduate capacity and capability building Entrepreneurship Programme • The System Development representing 52 programmes with implemented by MITI aimed at and Quality Certifi cation fi nancial commitment amounting to promoting entrepreneurship programme implemented by RM195.49 million, to benefi t 23,700 and creating awareness the MITI through the Malaysia SMEs. This will be followed by the among university students Productivity Corporation which programmes to enhance marketing on entrepreneurship. The has certifi ed 25 SMEs. SME and promotion, human capital Ministry through SME Corp. Malaysia meanwhile, development, product development Corp. Malaysia will also assisted 32 SMEs under its SME and others. organise the Students in Expert Advisory Panel (SEAP) Free Enterprise (SIFE) World programme which is aimed at A total of 150 Cup 2011 to promote social strengthening technical advisory programmes entrepreneurship, creativity services to SMEs through on-site with a fi nancial and soft-skills as well as assistance by industry experts. international networking commitment among students in the of RM525.68 higher learning institutes, academicians and business million are being communities which is implemented to expected to benefi t 1,500 build capacity and participants. capability of SMEs in 2011
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- MWFCD expects to turn Entrepreneur Development - MITI together with SME Corp. 900 single mothers into Programme aimed at Malaysia expects to train entrepreneurs by providing developing technology based 3,500 employees under the intensive skills training and entrepreneurs that are able Skills Upgrading Programme entrepreneurship assistance to compete in the global to enhance the capacities under its Single Mothers Skills market. The programme and capabilities of SME Incubator programme (I-KIT). is expected to assist employees especially in the A total of 45 programmes 155 entrepreneurs using technical and managerial (three in each state) will be commercialised technology fi elds such as fi nancial, organised throughout the and assist 24 companies in quality management as well year to enable at least 30% obtaining quality certifi cation. as business management. of the participants trained to The Ministry will also conduct Meanwhile, MITI through generate income of more than various entrepreneurship MATRADE will provide RM1,000 per month. Through development programmes Exports Training Programme the Geran Taman 1Azam in the agriculture and to enhance knowledge of programme, the Ministry agro-based industry in SMEs in export-related areas provides special grants to 600 collaboration with the various to benefi t 4,000 participants. participants of skills training agriculture development MOA meanwhile aims to programme to start or expand authority such as the Muda develop competent agro- their businesses. Agriculture Development based industry entrepreneurs Authority (MADA) and through integrated human - MOF and Cradle Fund Sdn Kemubu Agriculture capital development Bhd will implement the Development Authority programme to benefi t Entrepreneur “Scale-up” (KADA). These programmes 500 entrepreneurs. The Coaching Programme to train are targeted to increase Ministry and the Fisheries and assist 500 entrepreneurs the number of highly-skilled Development Authority in growing their business entrepreneurs and agriculture of Malaysia (LKIM) will from small to medium or large yield. implement a Human Capital enterprise, and to achieve an Development programme annual revenue of between • Human Capital to develop 800 competent RM2.5 million and RM3 agro-based entrepreneurs. million within three years. - MOHR in collaboration with the Manpower Department • Marketing and Promotion - A total of 70 training sessions (JTM) will continue to offer will be organised by MOTOUR modular and customised Most of the programmes for under the Homestay (part-time) courses in line marketing and promotion will be Entrepreneur Training with the objective to upgrade undertaken by MITI and these programme aimed at instilling and enhance the industrial include: greater entrepreneurship workers’ multi-tasking in some 2,500 homestay capabilities. A total of 20,000 - The One District One Industry operators and increasing the participants are expected to (SDSI) programme, whereby number of visitors to benefi t from the programme, the Ministry will organise one homestays. involving 270 SMEs. MOHR national showcase to market through the Department of and promote SDSI products - MOA and the Malaysian Skills Development (DSD) and services to both the Agriculture Research and will also train 2,400 school domestic and international Development Institute drop-outs into becoming markets. The showcase is (MARDI) will conduct an apprentices under NDTS. targeted to generate returns
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amounting to RM3 million in In addition, to promote and the Cradle Fund Sdn Bhd cash sales and RM16 million market SME products to local will provide pre-seed and in contract sales for SMEs. and foreign hypermarkets seed grants to 500 budding in Malaysia, the Ministry of entrepreneurs to develop - The Market Development Domestic Trade, Co-operatives their ideas into prototype Grant scheme by MATRADE and Consumerism (MDTCC) in and proof of concept with provide fi nancial assistance collaboration with hypermarkets, the ultimate aim to improve for SMEs to undertake departmental stores and commercialisation scenario activities related to the supermarkets nationwide towards a stronger innovation development of export aims to successfully list SME system. market. The Scheme is products into local and foreign expected to benefi t 1,000 hypermarkets under the - MOSTI through its agency, SMEs nationwide. Produk Malaysia Citarasa Kita MTDC will continue to (PMCK) programme. Another provide assistance for - The SME Brand Development 100 local products will also SMEs to engage in product Programme through SME be promoted and marketed to development through CRDF Corp. Malaysia to create hypermarkets abroad under the and TAF. In 2011, a total of awareness on branding Taste of Malaysia programme. RM50 million and RM6 million among 3,550 SMEs. At the same time, a total of have been allocated for CRDF Meanwhile, through 80 SMEs are also expected and TAF, respectively. The HDC, MITI will implement to benefi t from its Business schemes are expected to the Capacity Building Matching programme to assist benefi t 28 SMEs. and Industrial Linkage SMEs to access and sustain programme, aimed at their products listing in local - MITI will continue to equipping more Halal Industry and foreign hypermarkets and implement the Groom players with value-added supermarkets in Malaysia. Big programme to further knowledge to enhance their enhance the quality of growth. The programme • Product Development products developed by is expected to benefi t 400 700 SMEs to improve their SMEs, of which 25% of the - The Cradle Investment presence in the export SMEs will be targeted to be Programme being market. export-ready. implemented by MOF through
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today has more importantly, evolved into a full-time, viable and equally profi table business model for rural communities where it is no longer perceived as an activity to generate additional work and income for participants but has tremendous potential of becoming a steady source of income.
Industries created are continuously monitored and evaluated from time to time to ensure that the chosen business model delivers the desired results. The success One District One Industry, A Revolutionary Programme of the One District One Industry programme is determined not only For Rural Folks in terms of total sales generated The One District One Industry • Ministry of Agriculture and by a particular district, but also by programme or better known as Agro-based Industry (MOA); the number of employment and Satu Daerah Satu Industri (SDSI) rural entrepreneurs that it creates. has been in existence for almost • Ministry of Information To date, the programme has 20 years and has evolved over Communications and successfully created industries in a the years. First initiated in 1992 Culture (KPKK); total of 141 districts nationwide with with the intention of increasing the the states of Selangor, Kelantan, socio-economic status of rural • Ministry of International Perak, Johor, Kedah, Pahang, communities, the programme which Trade and Industry (MITI); Sabah and Sarawak taking the was then named as One Village lead in terms of the number of One Product (Satu Kampung Satu • Ministry of Tourism industries created. From the various Produk), was later expanded to (MOTOUR); and business activities undertaken by One Village One Industry (Satu rural communities, a total of 4,835 Kampung Satu Industri) in 2002 and • Federal Land Development entrepreneurs have been created subsequently to One District One Authority (FELDA). nationwide as at 31 December Industry (Satu Daerah Satu Industri) 2010, with some 62% or 3,005 in 2003 to increase its scope and Under the programme, the concept entrepreneurs currently involved in socio-economic contribution. In is to create an identity for one district operating homestays. Another 975 2004, the programme was placed by way of developing a unique entrepreneurs have ventured into directly under the purview of the product or to offer a particular the food and beverage industry, 840 Prime Minister’s Department which service which can be turned into specialising in Malaysian handicraft today assumes responsibility as an industry on a commercial scale. and another 15 currently involved in the programme secretariat and This was intended not only to offering healthcare-related services. co-ordinator. Currently, six attract tourists to the respective On average, in 2010, some 3,812 Ministries and Agencies are districts, but to also contribute or 79% of entrepreneurs involved in involved in the implementation towards developing a more creative the programme achieved an annual of the programme namely: and innovative society by way turnover of RM50,000 or less. Some of enhancing community-based 973 entrepreneurs or 20% obtained • Ministry of Rural and Regional socio-economic activities. The One sales of between RM50,000 and Development (MRRD); District One Industry programme less than RM500,000 per annum,
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while 1% or 50 entrepreneurs introduced involves clustering, which successfully achieved sales is intended at creating a network exceeding RM500,000 per year. of support for rural industries, from the procurement of raw materials, Statistics as at 31 December production processes to distribution 2010 revealed that a total of and marketing. The Government, 12,428 employment opportunities via the relevant Ministries and have been created through the Agencies, will further assist rural programme. This equates to a ratio entrepreneurs by way of creating of 2.6 people being employed for opportunities for them to form every single entrepreneur, with the strategic alliances with Government- bulk of employment opportunities Linked Companies (GLCs) and state created in the industries related development authorities in marketing to tourism, culture and arts, and their products and services. agriculture. In support of growing In addition, the Government is the wealth of rural communities, pursuing for the accreditation of the Government has also to date, products and services offered spent a total of RM91 million funds under the programme by preparing in developing the programme the entrepreneurs to meet with under the Ninth Malaysia Plan. the requirements of SIRIM, HACCP, HALAL, and Food Safety Moving forward, the One District standards and certifi cation. This One Industry programme has is the fi nal step in preparing rural placed greater emphasis on market entrepreneurs to market their intelligence, branding and the products and services globally. managing of production to ensure that the business model remains relevant, competitive and has the potential of being further expanded. One new concept that has been
Performance of SDSI Participants at the National Level Showcase
5VVM,U[YLWYLUL\YZ
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Note: The signifi cant increase of sales contracts during 2008 was due to the high number and value of MOU signed in 2008.
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76225 SME AR 2010n11.indd 63 11/10/11 2:24 PM CHAPTER 5 Building Capacity and Capability 64 Sabah /VTLZ[H` -VVK /HUKPJYHM[ /LHS[OJHYL :LY]PJLZ ;V[HS 05+<:;9@ ,5; Labuan ;V[HS /VTLZ[H` -VVK /HUKPJYHM[ /LHS[OJHYL :LY]PJLZ 05+<:;9@ ,5; Sarawak /VTLZ[H` -VVK /HUKPJYHM[ /LHS[OJHYL :LY]PJLZ ;V[HS 05+<:;9@ ,5; /VTLZ[H` -VVK /HUKPJYHM[ /LHS[OJHYL :LY]PJLZ ;V[HS /VTLZ[H` /VTLZ[H` -VVK /HUKPJYHM[ /LHS[OJHYL :LY]PJLZ ;V[HS -VVK /HUKPJYHM[ /LHS[OJHYL :LY]PJLZ ;V[HS 05+<:;9@ ,5; /VTLZ[H` -VVK /HUKPJYHM[ /LHS[OJHYL :LY]PJLZ ;V[HS 05+<:;9@ ,5; 05+<:;9@ ,5; 05+<:;9@ ,5; Johor Terengganu Negeri Sembilan Pahang /VTLZ[H` -VVK /HUKPJYHM[ /LHS[OJHYL :LY]PJLZ ;V[HS 05+<:;9@ ,5; Kelantan Melaka /VTLZ[H` -VVK /HUKPJYHM[ /LHS[OJHYL :LY]PJLZ ;V[HS 05+<:;9@ ,5; Perak Selangor Kedah Kuala Lumpur SDSI Manufacturers and Industries in Malaysia as at 31 December 2010 SDSI Manufacturers Perlis Pulau Pinang /VTLZ[H` -VVK /HUKPJYHM[ /LHS[OJHYL :LY]PJLZ ;V[HS 05+<:;9@ ,5; -VVK/HUKPJYHM[ /VTLZ[H`/LHS[OJHYL :LY]PJLZ ;V[HS 05+<:;9@ ,5; /VTLZ[H` /VTLZ[H` /VTLZ[H` -VVK /HUKPJYHM[ /LHS[OJHYL :LY]PJLZ ;V[HS -VVK /HUKPJYHM[ /LHS[OJHYL :LY]PJLZ ;V[HS -VVK /HUKPJYHM[ /LHS[OJHYL :LY]PJLZ ;V[HS 05+<:;9@ ,5; 05+<:;9@ ,5; 05+<:;9@ ,5;
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Comprehensive Financial Landscape for SMEs 70
New Programmes and Financial Facilities for 78 2011
76225 SME AR 2010n11.indd 67 11/10/11 2:24 PM CHAPTER 6 Enhancing Access to Financing 69 Macroeconomic policies played an important role in Enhancing Access supporting growth in 2010. Pre-emptive measures to Financing taken to ensure continued access to fi nancing to SMEs at relatively low cost of borrowing amidst the ample liquidity in the fi nancial system facilitated the recovery of the Malaysian economy. Special funds by the Government and increased utilisation of risk sharing mechanisms such as guarantee schemes enhanced viable businesses’ access to fi nancing. The improved fi nancing environment was also due in part to the development of a comprehensive institutional framework which include support, advisory services and special assistance by fi nancial institutions to SMEs.
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SMEs in Malaysia can avail themselves to fi nancing from various sources of funding, from both the private and public sectors. The fi nancial landscape is holistic, covering banking institutions (BIs); development fi nancial institutions (DFIs); venture capital companies and private equity; leasing and factoring companies; as well as the special funds and schemes by the Government and Bank Negara Malaysia (BNM). The Government schemes established as part of the stimulus package to assist SMEs further reinforced the sources of funding. As of end-2010, 88% of the stimulus funds have been approved, and 71% was disbursed benefi ting some 96,100 SMEs.
Banking Institutions and Development Financial Institutions
Banking institutions constituted 78% of total fi nancing outstanding to SMEs in 2010. Financial institutions (FIs), comprising BIs and DFIs approved RM62.2 billion to 140,487 SME accounts during the year (2009: RM50.9 billion, 140,118 SME accounts). The approval rate by fi nancial institutions to SME loans remained above 80%, higher than the rate for all customers. In the fi rst six months of 2011, the fi nancial institutions approved further RM38.3 billion to 72,379 SME accounts, with the approval rate of 80.3%.
Chart 6.1: Financial Landscape for SMEs
+L]LSVWTLU[-PUHUJPHS )HURPUN0UZ[P[\[PVUZ 0UZ[P[\[PVUZ
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=LU[\YL*HWP[HS 3LHZPUNHUK (Y9HOU\HUK 4PJYVMPUHUJL *VTWHUPLZ -HJ[VYPUN 7H^U)YVRPUN 0UZ[P[\[PVU
National SME Development Council SME ANNUAL REPORT 2010/11 CHAPTER 6 Enhancing Access to Financing 71
Chart 6.2: Financial Approval Rate
% 100
80 :4,Z
(SS*\Z[VTLYZ
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Source: Bank Negara Malaysia
As at end-2010, SME fi nancing outstanding from FIs, stood at RM141.2 Further enhancement to the billion involving 659,679 SME accounts (end-2009: RM141.6 billion; institutional framework for SME 641,322 accounts) and accounting for 37.6% of total business fi nancing. fi nancing ranging from advisory and These exclude more than 4,600 SME accounts with combined fi nancing support services to pre-emptive value of RM14.9 billion which have grown beyond the defi nition of SMEs assistance by fi nancial institutions as they have graduated to large companies during the year. If the funding to restructure loans of SMEs facing to this group of large fi rms is included, outstanding loans by fi nancial fi nancial diffi culties earned Malaysia institutions to SMEs increased to RM156 billion. The services sector international recognition as follows: continued to be the largest benefi ciary 55% of the total share of fi nancing outstanding. Total SME fi nancing outstanding picked up by 13% year-on- • Ranked number one for year to RM152.2 billion as at end-June 2011. If the upgraded accounts are four consecutive years by included, total SME fi nancing outstanding would total RM156.8 billion. the World Bank for ‘Getting Credits (Doing Business Report Chart 6.3: Financing Outstanding as at end-2010 (RM billion) 2009, 2010, 2011, 2012);
• Ranked second by the )0Z Consultative Group to Assist the Poor (CGAP) for ‘Loan accounts .V][-\UKZ :JOLTL per 1,000 adults’ (Financial Access Report 2010); and +-0Z • Ranked number 8 in 2011 (up
=LU[\YL*HWP[HS from number 13 in 2009) by the World Economic Forum for ‘Ease of Access to Loans’ from the -HJ[VYPUN 3LHZPUN Global Competitiveness Reports 94IPSSPVU 2010-2011 and 2011-2012).
Source: SME Corp. Malaysia, Bank Negara Malaysia and Securities Commission of Malaysia
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During the year, collaborative efforts to establish SME Financing Help Desks at SME associations to provide advisory services, as well as the PARTNER initiative by the Association of Banks in Malaysia (ABM) to standardise and simplify the loan application forms and procedures further enhanced access to fi nancing for SMEs. PARTNER was launched in November 2010. Under Phase 1, eight out of the 14 participating banks have adopted the PARTNER fi nancing application form. In this connection, SMEs can download from the respective banks’ websites and ABM’s website (www.abm.org.my) the following documents:
• Application form and checklist of Credit Guarantee Corporation During the year, CGC also focused relevant required documents; on initiatives to expedite loan Credit Guarantee Corporation approvals and disbursements for • Explanation to fi ll in the form; Malaysia Berhad (CGC) continued to easier and faster access to fi nancing play its role as a leading enhancer of by SMEs. This included the product • A common processing timeline credit guarantees to SMEs. Since packaging featuring template-based for all participating banks; and its establishment in 1972, CGC has processing via the Credit Enhancer guaranteed about 410,000 SMEs scheme to improve turnaround • A directory of dedicated SME valued at RM48 billion. In 2010, time to seven days and an 80% contact points at participating more than 6,000 loans valued at guarantee cover, as well as the banks. RM2 billion was guaranteed by Portfolio Guarantee programme CGC. A new product called the whereby loans are processed and Credit Guarantee Schemes SmallBiz Express (Islamic version approved on a portfolio basis on also available) was introduced during a pre-determined set of eligibility Over the years, the Government has the year offering loans ranging from criteria agreed upon by CGC put in place numerous guarantee RM20,000 to RM50,000, and a and the participating banks. schemes to enable SMEs to have guarantee cover of up to 80% to better access to fi nancing. These viable businesses. CGC stepped In February 2010, CGC introduced include the schemes offered by up efforts to increase Bumiputera a revised risk-adjusted-pricing the Credit Guarantee Corporation contractors’ accessibility to structure to all its guarantee Malaysia Berhad (CGC), and fi nancing via its Syariah-based schemes to better price its products Overseas Guarantee Facility by the Bumiputera Entrepreneur Project more accurately based on the Export-Import Bank of Malaysia, the Fund-i (Tabung Projek Usahawan risk profi le of its borrowers. This new schemes introduced to assist Bumiputera-i) and aggressively enabled the CGC to improve its SMEs during the global fi nancial promoted the Government funded risk management capabilities crisis and the scheme to promote Green Technology Financing whilst benefi ting borrowers with investments in green technology. Scheme through the media, low risk profi le to enjoy lower dialogues and exhibitions. guarantee fee and vice versa. In the long run, the move is to enable SMEs to strengthen their credit standing and “bankability”.
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Credit Bureau Malaysia companies was augmented with points, including branches of another RM3 billion effective participating fi nancial institutions for SME Credit Bureau Malaysia 1 January 2011 in addition to the scheme, from 1,868 at end- was renamed as Credit Bureau the existing RM7 billion due to 2009 to 2,545 at end-2010. With Malaysia Sdn Bhd as part of its overwhelming response, especially better geographical outreach and transformation as provider of SME among SMEs. As of end-June emphasis on timely disbursement credit information into a full-fl edged 2011, a total of RM 8.48 billion has of funds through the slogan of credit bureau, offering reliable been approved under this scheme “Easy, Fast and Convenient” have credit information and ratings on benefi ting 7,553 SMEs. The enhanced the fi nancing environment SMEs, micro-businesses and Industry Restructuring Financing for microenterprises. As of end- individuals. The transformation is Guarantee Scheme (IRFGS) to June 2011, fi nancing outstanding to enable the Bureau to be in a enable SMEs to re-tool their of Skim Pembiayaan Mikro better position to support micro- operations to move up the value increased further to RM821.7 million businesses and individual start-ups chain and to encourage usage of (15.8% year-on-year), benefi ting towards fi nancial inclusion within green technology saw RM1.06 more than 68,000 accounts. the economy, thus facilitating billion approved to 268 SMEs and their development in tandem with was closed by end-December During the year, BNM has widened the other business segments. 2010. Under the Green Technology its strategic partners to include local Financing Scheme to promote councils and SME associations Besides credit information, the investments in green technology, a and business chambers for the Bureau offers basic individual Risk total of 83 projects were awarded outreach initiative. In collaboration Report, which over time more the Green Technology certifi cation, with local councils, BNM’s strategic value added information such as with potential fi nancing amounting collaboration with SME Corporation litigation data and individual credit to RM1.8 billion during the Malaysia, Bank Simpanan Nasional score will be added to provide to period under review. Of these, and the Ministry of Housing and the stakeholders. The Bureau also 20 projects were granted Local Government via Local offers an online data monitoring fi nancing of RM326 million. Councils nationwide embarked and alert system through the on an outreach initiative through Credit Monitoring Services (CMS) Microfi nance distribution of fl yers or information to allow organisations to make on Microfi nancing Scheme at their informed decisions on any changes Microfi nancing Scheme (Skim licensing counters. Going forward, to borrowers’ credit worthiness. Pembiayaan Mikro), which was market research surveys will also As at end-June 2011, 41 fi nancial established in 2006 to provide help enhance more targeted and institutions and over 28,230 non- fi nancial assistance without effective promotional efforts to bank members (including SMEs collateral to micro entrepreneurs raise awareness among micro and corporate credit grantors from has seen visible progress over enterprises on fi nancing facilities credit and leasing companies, the years. As of end-2010, under Skim Pembiayaan Mikro. telecommunication companies, there were 10 participating multinationals, local conglomerates fi nancial institutions under and government agencies) that the scheme, providing total utilise its product and services. outstanding microfi nancing of RM776.3 million, or an increase Other Guarantee Schemes of 25.9% from previous year, benefi ting more than 66,000 The Working Capital Guarantee accounts (end-2009: RM616.5 Scheme (WCGS) managed by million; 57,403 accounts). The the Syarikat Jaminan Pembiayaan strong performance was partly Perniagaan Berhad (SJPP) contibuted by the signifi cant to provide working capital to increase in the number of access
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To complement the Pembiayaan (VCMCs) increased by about 11% were divestments of VC funds Mikro framework, the 1Malaysia to RM5.96 billions at end-2010 from 28 companies amounting to Micro Protection Plan (1MMPP) (end-2009:RM5.35 billion). Of RM89 million (2009: 21 companies; is currently offered by the this amount, RM3.4 billion was RM43 million), of which one insurance and takaful industry invested in 389 investee companies investee company was listed on to provide fi nancial safety net for as at end-2010 (end-2009: the Main Market of Bursa Malaysia micro enterprises and individuals RM2.6 billion; 445 companies). and another company going for operating small businesses against The Government continued to listing on the ACE Market. unexpected events such as the play a signifi cant role in the VC death or disability of breadwinners, industry, contributing to about half In April 2011, the Securities and damage or loss of property due of the total committed funds. Commission unveiled the Capital to accidents, fl oods and fi res. The Market Masterplan 2 (CMP2), which Scheme is expected to be affordable During the year, 84 investee outlines the development plan for (starting rate less than RM20 per companies received VC funding the capital market for the next 10 month) with simple underwriting compared to 99 companies years. The plan emphasised the processes and wide outreach. in 2009. The utilisation of the need for an increase in private sector funds concentrated mainly in participation in the VC industry and Venture Capital the early-stage, expansion and for increased private equity funds mezzanine stage of the business in addition to enhancing effi cient Venture capital (VC) funds which lifecycle. Investments by sectors mobilisation of intermediation of provide fi nancing to high-risk and indicate that aside from the IT the national savings to fi nance high-growth sectors witnessed and telecommunications sectors, entrepreneurial development and further expansion during the year. VCCs were investing in electricity innovation that is critical in driving Total committed funds by the and power generation, education, the nation’s economic growth. Active 113 registered venture capital transportation & storage, and also participation from the private sector companies (VCCs) and venture fi nance-related services sub- would enable the Government to capital management companies sectors. During the year, there utilise more resources towards its core function of providing infrastructure and facilitating a better Chart 6.4: VC Investment by Sector business ecosystem to accelerate the growth of SMEs in the country. 4HU\MHJ[\YPUN
3PML:JPLUJLZ
0; *VTT\UPJH[PVU
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+\YPUN +\YPUN
Source: Securities Commission of Malaysia
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Government Funds and Schemes in 2010
As at end-2010, a total of RM57.4 billion funds have been approved to about 2.2 million SMEs through the 83 funds and schemes made available by the Government. Some 30% of funds were disbursed through the nine Ministries and 16 Agencies, while the balance was through fi nancial institutions.
Table 6.1: Performance of Government Funds and Schemes as at end-December 2010
No. of Allocations Applications Approved Disbursed Outstanding Type of Fund/Scheme Schemes RM billion No. RM billion RM billion RM billion Soft loans 45 27.87 2,138,960 48.17 78.48 17.67 Grants* 17 4.59 76,708 4.30 3.33 0.17 Guarantee Schemes 7 3.08 35,155 3.52 2.05 1.54 Venture Capital 12 1.29 94 0.72 0.67 0.09 Equity 2 0.39 138 0.72 0.56 0.36 Total 83 37.22 2,251,055 57.43 85.09 19.83
*includes venture capital funds that had been rationalised into grants Source: SME Corporation Malaysia
The key funds and grants of the public transportation sector with a total fi nancing of implemented during the year include: and related-industries. RM107.91 million. Meanwhile, another 21 Bumiputra SMEs • The Initiative Financing Scheme • Microcredit fi nancing by the in the manufacturing and by the Ministry of Finance (MOF) Ministry of Agriculture and services sectors have received and Amanah Ikhtiar Malaysia Agro-based Industry (MOA) the assistance under the (AIM) to reduce poverty rate of through TEKUN Nasional under Skim PKS by PUNB with total poor households had benefi ted its Entrepreneur Development fi nancing of RM30.05 million. 251,510 SMEs during the year, for Indian Youth programme had of which 19,017 were to new benefi ted 740 Indian SMEs, with • The Rural Economy Funding borrowers. The programme fi nancing valued at RM6.4 million. Scheme (SPED) and the has a high repayment rate of Rural Economic Assistance 99.3% and had successfully • Franchise Schemes and Programme by the Ministry of graduated 1,620 micro Franchise Financing Scheme Rural and Regional Development enterprises into small enterprises. by the Ministry of Domestic (MRRD) in collaboration with its Trade, Co-operatives and partners had enabled fi nancial • Financial assistance from the Consumerism (MDTCC) via assistance, including purchase Ministry of International Trade Perbadanan Nasional Berhad of machinery and equipment, and Industry (MITI) through SME had assisted 686 middle-level to 279 rural entrepreneurs, Bank which provided working Bumiputera Entrepreneurs capital to 2,456 Bumiputera (MLBE), while the PROSPER • The Maritime Fund by MOF SMEs amounting to RM958.4 Schemes (namely Pemborong had benefi ted six SMEs in the million and a further 416 PROSPER, PROSPER Runcit shipping and marine-related SMEs benefi ted from loans and PROSPER Siswazah) by services with disbursements amounting to RM246.6 million Perbadanan Usahawan Nasional amounting to RM384.3 million, under the Public Transport Berhad (PUNB) had assisted while under the Tourism Development Fund (TPPA) and developed 464 Bumiputera Infrastructure Fund, RM146.5 to promote the development SMEs in the distributive trade million was extended to develop the tourism industry.
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Table 6.2: Special Funds and Guarantee Scheme for SMEs Administered by BNM (as at end-Dec 2010)
Loans Allocations Approvals Disbursements Utilisation Rate Type of Fund/ Outstanding Scheme (RM million) (RM million) (RM million) (RM million) (%) Fund For Food 300.0 1,727.9 1,707.2 111.4 576.0 New Entrepreneurs 2,550.0 4,032.6 3,721.9 1,778.9 158.1 Fund 2 Fund for Small and Medium 6,300.0 14,332.5 13,699.2 5,614.4 227.5 Industries 2 Micro Enterprise 200.0 208.1 197.9 161.9 104.1 Fund Bumiputera Entrepreneurs 300.0 135.6 63.8 27.8 45.2 Project Fund – Islamic Total 9,650 20,436.7 19,390 7,694.4 211.8
*All funds are revolving except Bumiputera Entrepreneurs Project Fund – Islamic Source: Bank Negara Malaysia
• BNM funds had assisted more than 47,000 SMEs as at end-Dec 2010, with total fi nancing approval worth RM20 billion. In 2010, 6,612 SMEs had been approved with funds amounting to RM1.6 billion, of which the New Entrepreneur Fund 2 (NEF2) and the Tabung Projek Usahawan Bumiputera-I (TPUB-i) meant for Bumiputera SMEs had benefi ted 698 companies during the year with RM286.6 million funds channelled. Another RM1.2 billion of loans was extended via the Fund for Small and Medium Industries 2 (FSMI2) to 1,737 SMEs. As of end-June 2011, the total fi nancing approvals under the BNM funds amounted to RM20.4 billion.
Small Debt Resolution Scheme
The Small Debt Resolution Scheme (SDRS) has been established since May 2003 to assist SMEs that get into fi nancial diffi culties during their course of business. Viable SMEs with non-performing loans (NPL) or non-performing fi nancing (NPF) irrespective of amount that are facing fi nancial diffi culties with fi nancing from multiple fi nancial institutions are eligible to apply for the SDRS.
As at end-2010, 730 applications with fi nancing amounting to RM628 million (or 76% of applications received) had been approved for rescheduling or restructuring under the SDRS (end-2009: 684 applications, RM471 million). This is in addition to 1,557 cases resolved by fi nancial institutions to restructure and reschedule fi nancing amounting to RM2.1 billion on their own outside the SDRS.
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Contact Details: ABM Connect Tel: 1-300-88-9980 E-mail: eABMConnect Website: www.abm.org.my/ ABMConnect
• SMEs can also seek assistance from the “One Referral Centre” at SME Corp. Malaysia headquarters and in its state offi ces nationwide. Business coaches and counsellors are available to provide business Financial Advisory Services and Outreach development services as well as SMEs can avail themselves to • An important development advisory and guidance about the fi nancial advisory services through during the year was the government funds, programmes the various channels, including programme to establish SME and various incentives available the BNM Laman Informasi Nasihat Financing Help Desks (FHDs) at for SMEs. dan Khidmat or BNMLINK, the SME associations and business One-Referral Centre at SME Corp. chambers nationwide. With Contact Details: Malaysia, ABM, Ministries and the aim to raise awareness One Referral Centre agencies channelling funds, and the and to help instil good fi nancial SME Corporation Malaysia commercial banks and DFIs. management practices that Tel: 1-300-30-6000 (Toll-Free Line) would eventually help enhance Fax: 03-2775 6000 • In order for greater outreach SMEs’ opportunity to obtain E-mail: [email protected] to the non-urban areas as fi nancing from fi nancial Website: www.smecorp.gov.my part of the fi nancial inclusion institutions, BNM in collaboration agenda, the BNMLINK was with ABM, CGC and SME • In addition, CGC conducts further enhanced during the Corp. Malaysia engaged SME advisory and consultancy year through the introduction associations and business activities providing valuable tips of the Mobile Service Counters chambers to establish help and information on how to start to complement the existing desks at their respective offi ces. a business, the importance of channels offered at the Assistance rendered focused cash-fl ow management and headquarters in Kuala Lumpur on the area of loan assessment good credit practices. CGC and branches nationwide. by fi nancial institutions; the also has its panel of Business BNMLINK mobile service importance of maintaining good Advisory Service Entity (BASE) counters began in Selangor and repayment track records and consultants to assist SMEs not were later expanded to all states exhibiting business viability; familiar with or do not know by September 2011. In 2010, as well as the various services how to prepare the required BNMLINK had successfully offered by fi nancial services and documents for business loan resolved 95% of 327 cases fi nancial advisory providers. A application. related to access to fi nancing total of 122 trainers from 19 by SMEs, of which 51% were SME associations and business Contact details: resolved in favour of SMEs. chambers in six regions (Kuala Client Service Centre Lumpur, Johor Bahru, Penang, Credit Guarantee Corporation Contact Details: Kuala Terengganu, Sabah and Malaysia Berhad BNMLINK Sarawak) were trained for this Tel: 03 - 7880 0088 Tel: 1300 88 5465 (Toll-Free Line) purpose. Fax: 03 - 7803 0077 Fax: 03-2174 1515/1616 E-mail: [email protected] E-mail: [email protected] Website: www.iguarantee.com.my
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Table 6.3: New programmes in 2011
Ministry / Agency Programmes (RM million) Business Accelerator MITI 40.0 Programme Enrichment and MITI Enhancement 30.0 Programme Dana Modal Teroka MOF 100.0 MAVCAP II Entrepreneur Scale-up MOF 5.0 Coaching Programme MDF/ BSN/ MICC Creative Industry Loan 200.0 TOTAL 375.0
Source: SME Corporation Malaysia
New Programmes and Financial Facilities for 2011
The Government continued to emphasise on further enhancing SME access to fi nancing in 2011, with RM5.3 billion targeted to assist 333,500 SMEs mainly in the form of providing working capital. There are fi ve new programmes amounting to RM375 million being introduced in 2011. These include the Business Accelerator Programme, and the Enrichment and Enhancement Programme offered by MITI through SME Corp. Malaysia, whereby a holistic approach of providing total package of assistance from capacity building to fi nancing was adopted. All participating SMEs would need to be evaluated fi rst under the SME Competitive Rating for Enhancement (SCORE) and an action plan for improvement will be decided to build up the capacity and competitiveness of the fi rm with the aim to move up the rating of the company, in line with the result-based approach adopted.
Financing programmes introduced in 2010 will gather further momentum in 2011. MOF will augment RM120 million to the Ar-Rahnu Micro Programme to be channelled via Yayasan Pembangunan Ekonomi Islam Malaysia. The programme provides easy access of micro credit facility to the lower income group to be used as business capital for various productivity activities and to provide access to fi nancing through the mortgage transaction based on Syarak rule. Meanwhile, a total of RM230 million has been allocated under the Green Technology Financing Scheme to promote the green technology industry.
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Chapter 7: New Growth Drivers for SMEs 83
76225 SME AR 2010n11.indd 80 11/10/11 2:24 PM Chapter 7: New Growth Drivers for SMEs
Opportunities for SMEs under the Economic 84 Transformation Programme
76225 SME AR 2010n11.indd 81 11/10/11 2:24 PM CHAPTER 7 New Growth Drivers for SMEs 83 The Government has now embarked on the New Growth Economic Transformation Programme (ETP) Drivers for SMEs representing a comprehensive effort combining both the Strategic Reform Initiatives (SRIs) of the New Economic Model (NEM) and the National Key Economic Areas (NKEAs). The transformation is envisaged to result in a structural shift towards a services-based economy, that is characterised by more knowledge-intensive activities. SMEs are integral in the transformation process and would be encouraged to participate in the NKEAs through fi nancial support, tax incentives, better access to research and technologies, as well as improved infrastructure. SMEs are also poised to potentially benefi t from spillover effects of investments in the Entry Point Projects (EPPs). Emergence of new growth drivers is expected to propel Malaysia into becoming a high income economy.
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Since then, the Government has made a series of announcements comprising a total of 100 initiatives under the identifi ed NKEAs. The initiatives are expected to generate an estimated RM171.2 billion worth of investment, RM328.4 billion of GNI and about 372,361 new jobs. Out of these, 61% of the initiatives are expected to benefi t SMEs across all economic sectors. These benefi ts can be seen through the direct and indirect channel. The former entails direct participation of SMEs in programmes such as the Small Opportunities for SMEs under the Economic Retailer Transformation Programme (TUKAR) or through linkage Transformation Programme opportunities to become suppliers, The Economic Transformation Programme (ETP) is expected to generate while the latter refl ect SMEs an incremental growth of 6% per annum in Gross National Income (GNI) to benefi ting from spillover effects of raise per capita GNI from RM 23,000 (USD 6,700) in 2009 to RM47,000 investments by large entities in the (USD15,000) in 2020 and generate 3.3 million new jobs during the period. EPPs. The Entry Point Projects (EPPs) and the Business Opportunities are vehicles for the ETP. In the ETP announcement on 25 October 2010, the Government identifi ed a total of 131 EPPs under the NKEAs.
Table 7.1: ETP Announcement and Benefits to SMEs
No. of ETP Announcement No. of No. of Initiatives NKEAs that are benefi cial to SMEs Updates Date NKEAs Initiatives Benefi ting SMEs
st Education, healthcare, distributive trade, 1 25 Oct 2010 6 9 7 agriculture and oil, gas & energy sub-sectors
nd Electrical & electronics, tourism services and 2 30 Nov 2010 4 9 7 distributive trade sub-sectors
rd Tourism, distributive trade, agriculture, palm oil 3 11 Jan 2011 10 19 15 and oil, gas & energy sub-sectors Oil, gas & energy, business services, electrical 4th 8 Mar 2011 8 23 11 & electronics, healthcare, tourism, Greater KL, agriculture and distributive trade sub-sectors
th Oil, gas & energy, education and, tourism services 5 19 Apr 2011 6 12 3 sub-sectors
th Greater KL, electrical & electronics, distributive 6 13 June 2011 7 15 9 trade, tourism and palm oil sub-sectors
th Electrical & electronics, palm oil & rubber, 7 8 Sept 2011 8 13* 9 wholesale & retail, agriculture, and Greater KL
* 3 programmes were announced under the Strategic Reform Initiatives (SRIs) of NEM
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Wholesale and Retail
The wholesale and retail sector is of the Wellness City which are (NCIA) will invest in setting up two not only the largest contributor to expected to result in increased Aquaculture Complexes in Perak. Gross Domestic Product (GDP), retail activity benefi ting SMEs in Both complexes are projected but also represents the highest related fi elds such as logistics, ICT to produce 14,000 tons of white involvement of SMEs. In view of and business services including shrimp per year and are expected its vast potential, the Government advertisement and professional to benefi t SMEs / aquapreneurs has announced several initiatives services. SMEs should also take in the agriculture sector through, aimed at further expanding this advantage of opportunities from transfer of technology and skills sector. These include the TUKAR the development of the franchise, on post-harvest processing. programme, whereby small sundry direct sales and e-commerce shops will be transformed into business to unlock its full potential Under the Tenth Malaysia Plan modern retail outfi ts to enhance as well as further liberalisation of (10 MP), the Government accords their competitiveness. At the same the distributive trade sector to priority to modernising the time, the programme will also assist enhance its competitiveness. agriculture sector, developing retailers in keeping good recording activities along the value chain of accounts which is necessary in Agriculture and in enhancing productivity preparation for the implementation of and income levels of SMEs the Goods and Services Tax (GST). The agriculture sector is another through the following initiatives: sector with high involvement of Meanwhile, the Federal Agriculture SMEs comprising farmers and • Set up agriculture consortiums Marketing Authority (FAMA) will smallholders. This NKEA is expected and cooperatives to reap invest RM50 million to transform to create 74,000 job opportunities the benefi ts of scale; and streamline the existing mobile and increase the income of farmers markets such as pasar tani, pasar by two to four times. Entry point • Encourage adoption of malam, pasar tamu into “Pasar projects announced under the accredited practices by farmers, Komuniti”. Both the TUKAR and NKEA in 2011 include the up-scaling fi shermen and agropreneurs; Pasar Komuniti programmes are of paddy farming in the MUDA expected to benefi t existing SMEs area (RM100 million investment), • Strengthen marketing in the retail sector to upgrade development of an integrated high- through contract farming their outlets and increase sales. In tech processing shrimp plant and and strategic alliances; addition, there are also collective shrimp farming (RM375 million), and efforts engaging the next generation development of a high-value herbal • Promote utilisation of modern of shoppers who are technology- plantation in Pasir Raja, Terengganu. farm technology and ICT, savvy and provide a platform of The projects are expected to boost including ICT-based Agriculture convenience to SMEs in terms of productivity and income levels as Flagship Projects; and technical support and facilities. well as encourage local farmers This include the development of to undertake these activities. • Review and streamline on-line payment facilities to help existing regulations and SMEs and cooperatives in the Other notable projects include the procedures, particularly in sector to undertake e-commerce setting up of fragrant rice production the areas of swiftlet farming, activities as well as development of for non-granary areas and the aquaculture and the herbal a virtual mall to provide SMEs with setting up of edible bird’s nest industries to attract greater the global presence by covering modern production facilities, which investments and participation a wider scope of target market. are expected to benefi t existing local from the private sector. farmers, micro-enterprises, contract Other projects in the pipeline farmers, SME producers and the include an integrated complex at suppliers of edible bird’s nests. In the the Kuala Lumpur International latest announcement, the Northern 2 (KLIA2) and the establishment Corridor Implementation Authority
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tourism-related services industries.
Business Services
The business services sector has the potential of generating knowledge- intensive employment opportunities as Malaysia progresses towards becoming a high income economy. The sector is targeted to contribute 3.3% of GDP by 2015. Giving a boost to business services and activities, a world-class data centre hub will be established at the cost of RM672 million to develop new and upgrade existing facilities to supply data centre fl oor space in meeting with increasing demand. The construction of these facilities will benefi t SME contractors and those The Government will continue to tourist arrivals is to attract a larger in the ICT sector that will have the provide support to value adding share of high spend travelers. opportunity from supplying hardware activities through adequate and parts and equipment, software, and specifi c infrastructure facilities Among the main EPPs identifi ed professional and related services. and logistics, particularly in the include the building of a Premium This is in line with efforts under designated Permanent Food Outlet in Johor at Genting Indahpura the ETP to transform Malaysia Production Parks and Aquaculture which will offer tourists designer into a world-class datacenter hub. Industrial Zones. Also to be given labels at less than retail prices SMEs in the business services priority are efforts to intensify and the setting up of the Malaysia subsector are also expected to collaborative research and Convention and Exhibition Bureau benefi t from the 10MP focus on development with established with an allocation of public funds further developing construction agriculture research institutes in of RM50 million to attract business related and environmental order to gain greater innovation events to Malaysia. Greater management services. in production processes, disease emphasis will also be placed on control, safety and quality control, providing tourists with better facilities Electrical and Electronics including development of new to cater for high-end tourists via high-value added products. the development of premium The electrical and electronics hotels and golf resorts as well as sub-sector contributes to 8% Tourism upgrading of existing resorts in of GDP, about 6% of total Langkawi, and the development of employment and 39% of the Tourism is the second largest a premier world-class ecotourism country’s export earnings. To industry in the country after site in Karambunai, Sabah. These further expand the potential manufacturing, with Malaysia initiatives are envisioned to create of this sector, three signifi cant securing the number nine spot in more retail outlets and benefi t projects have been announced the list of most visited countries existing SMEs in the logistics, under the ETP which include: in the world in 2010. In 2011, the wholesale and retail trade sectors. Government is targeting to receive The establishment of more hotels • Setting up of fi ve wafer 25 million tourist arrivals, generating and other tourism venues will not fabrication plants in the Kulim some RM60 billion tourism receipts. only benefi t small contractors in the Hi-Tech Park with a total Another focus moving forward in construction sector but also benefi t investment of RM1.9 billion addition to increasing the number of existing SMEs in the hospitality and over the next fi ve years;
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• Development of a solar facilities to world-class banking and ecosystem to unlock Malaysia’s cell fabrication facility in fi nancial institutions, investment full potential in the areas of Melaka with an investment houses, and regulators operating bio-pharmaceuticals, medical of RM2.2 billion; and in Malaysia’s fi nancial system, and technology, private healthcare reaffi rm Malaysia’s position as a fi nancing and health services. • Establishment of a manufacturing leader in global Islamic fi nance. In hub and international distribution the next few years, the development Initiatives announced in 2011 network of electrical home of Damansara City 2 and integrated include developing and positioning appliances (EHA) with an urban mass rapid transit system Universiti Malaya Health Metropolis investment of RM250 million. are expected to benefi t SMEs as Malaysia’s premier medical hub in the construction sector and with an investment of RM1.25 These projects combined are transportation-related sectors. billion. Other initiatives include the expected to not only benefi t SMEs establishment of two specialist in the construction sector, but Meanwhile, Talent Corporation hospitals in the Klang Valley, and also provide ample opportunities Malaysia, an agency established the RM500 million project involving for development of SME suppliers under the Prime Minister’s a biopharmaceutical manufacturing in the parts, equipments and Department to initiate and and development facility by 2020. related services, including facilitate initiatives that will help SMEs that manufacture and supply logistics. SMEs should also reap the country meet its talent needs, medical devices, pharmaceuticals, opportunities from the 10MP has been tasked to strategise and medicines and medical care services which focuses on automation, implement initiatives to engage are expected to benefi t from these miniaturisation, digitisation and and attract the best talents to fi ll initiatives in addition to SME service multimedia applications as well positions created by the various providers in the medical healthcare as specialisation in the areas NKEAs. These initiatives will sector and small contractors of semiconductors, embedded assist and enable SMEs to move who will have the opportunity to systems, optoelectronics, radio up the value chain by engaging participate in the construction frequency and wireless technology. in more challenging activities activity. SMEs can also reap from The latest announcement involves and expanding their operations opportunities from the 10MP in turning an SME Innovation Award by pooling the best talents. The promoting Malaysia as a hub for winner from a contract manufacturer latest announcement to establish healthcare excellence which include into a product company that market InvestKL to attract, facilitate and fostering strategic alliances among its own brand and compete more service large foreign multinational local and foreign healthcare service directly in the global solid state investments into Greater KL/ providers, travel organisations lighting (SSL) market, estimated to Klang Valley will indirectly benefi t and medical insurance groups in be worth USD40 billion annually. SMEs by providing opportunities order to provide a more integrated for them to become suppliers of and comprehensive package of Greater Kuala Lumpur large foreign multinationals. services to healthcare travelers.
Greater KL has been identifi ed as Healthcare Education one of the NKEAs as the city itself contributes up to eight times more The healthcare industry is expected The continued growth of the than the GDP of any other city in to boom in response to the education sector will spearhead Malaysia. The NKEA initiative aims at increasing demand due to the the efforts to cultivate fi rst-class enabling urbanisation to become a country’s ageing population and human capital as an engine of strong driver of GNI and to maximise rising affl uence and willingness to economic growth and pave the urban productivity in pursuing spend on high quality healthcare way for Malaysia to become an greater effi ciency and liveability. services. In positioning healthcare international hub of higher education Among the EPPs that will be as an engine of economic growth excellence. Projects identifi ed under pursued include the development of and wealth creator, the healthcare the NKEA include the development the KL International Financial District NKEA will focus on the larger of an Advanced Engineering, (KLIFD) to provide state-of-the-art sub-sectors within the healthcare Sciences and Innovation Cluster
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to be jointly undertaken by EPPs under this NKEA include pharmaceuticals; encourage good Technology Park Malaysia, Universiti accelerating the replanting of agriculture practices, agronomic Tenaga Nasional (UNITEN) and oil palm, increasing palm oil management and mechanisation the Multimedia University (MMU) extraction rate to 23% by 2020 especially among smallholders; involving an investment of RM374 and categorising palm oil mills. and centralise procurement million over the next 10 years. These The Malaysian Palm Oil Board of agricultural inputs such as projects are targeted to benefi t (MPOB) will also recruit additional fertilisers and pesticides to lower SMEs in the ICT, biotechnology Tunjuk Ajar dan Nasihat (TUNAS) input costs for smallholders. and engineering fi elds. offi cers to cluster smallholders into cooperatives to improve yields in Oil, Gas and Energy Under the NKEA, initiatives will fresh fruit bunches. In addition, also be undertaken to build the fi ve bio-oil plants will be built over While the oil, gas and energy International Convention Centre and a period of fi ve years with an accounts for 20% of GDP, the Resort Hotel in Kuala Lumpur as investment of RM124 million. These NKEA is mainly dominated by large well as development of an integrated initiatives combined are likely to raise Multinational Corporations due premium health education cluster in not only productivity and income to the capital intensive nature of Port Dickson by 2012. SMEs in the of palm oil smallholders and palm the activity. Nevertheless, SMEs construction sector stand to benefi t oil mills owners, but equally benefi t that provide support services to from the construction of these existing SMEs in the construction the NKEA are likely to gain as the projects, and so will SMEs in the sector. In addition, four projects NKEA expands at an average hospitality, education and medical to develop the downstream palm annual rate of 5% and create an healthcare services. In order to make oil industry will be undertaken additional 52,300 jobs besides Malaysia a preferred and attractive including an integrated methyl ester providing a more sustainable energy education destination, initiatives sulphonate and fatty alcohol plant platform for the country by 2020. under the 10MP include establishing and plants to produce special fatty a more conducive educational ester, high grade tocotrienol and EPPs to be implemented under the ecosystem to attract students and isomers and a world class R & D NKEA include introduction of fi ve world leading faculties in niche areas centre are expected to increase new tax incentives in the Petroleum to set up branches in Malaysia, and local demand from smallholders Income Tax Act to generate more intensifying marketing and promotion and stabilise their income, provide activity with additional RM58 efforts in high potential markets. intermediate inputs for downstream billion to the Government over the activities as well as increase next 20 years; development of Palm Oil productivity and creation of new the Tanjong Agas Oil & Gas and products from the R & D centre. Logistics Industrial Park in Pekan; The ETP programme aims to the construction of three new power transform the palm oil industry SMEs also stand to gain from the plants, two hydro plants, one coal in order to boost the incomes 10MP that would complement the plant and other power transmission of some 160,000 smallholders NKEA initiatives which promote infrastructure; and intensifi cation and at the same time generating Malaysia as a global hub for palm of exploration activities by the increased contribution to the GNI. oil and preferred destination for national oil and gas company. The palm oil industry remains as foreign investments in areas such the fourth largest contributor to as oleochemical-based products, the economy. The Government bulking facilities and R&D; develop has identifi ed about RM75 billion palm oil industrial clusters into in business opportunities to be integrated sites for promoting undertaken up to 2020 in the form downstream activities such as of expansion of existing upstream biofuel, oleochemicals, biofertilisers, activities and development of specialty food products, biomass greater downstream activities. products, nutraceuticals and
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Other initiatives include the Initiatives (SRIs) which is the the next generation of world- development of new oil and gas second critical component of class Bumiputera entrepreneurs assets as well as the setting up the ETP. These programmes across all 12 NKEAs. As a of the diesel processing plant are expected to benefi t SMEs in starting point, a total of 1,100 and expansion of the wax plant the area of capacity building: Bumiputera SMEs comprising in Bintulu. The country is also the top 100 medium Bumiputera likely to set up an integrated oil • MyProCert Programme under SMEs and top 1,000 small/micro and gas hub, establish a Refi nery SRI Human Capital Development companies will be identifi ed and Petrochemical Integrated using clearly-defi ned criteria as Development (RAPID) and The programme is intended well as an open and transparent develop marginal oil and gas to upskill Malaysians towards process that will be monitored fi elds and re-gasifi cation plant. international certifi cation by an independent audit fi rm. standards. Trained and A clear exit mechanism will be These projects will benefi t certifi ed Malaysians within put in place whereby companies mainly SMEs providing support this programme will be part must either ‘graduate’ or services such as engineering of the critical supply for talent become large within 5 years. and professional services as well sourcing for the industry. as SMEs in the port and marine Conclusion services. The huge construction This programme will cover activity is also likely to benefi t some professional certifi cations The ETP presents a broad spectrum of the SME contractors. Meanwhile, from leading companies and of opportunities under the EPPs SME suppliers of energy effi cient institutions from 2011-2015 for SMEs to take advantage and appliances are likely to expand with total target participants benefi t. The initiatives also include from the Sustainability Achieved via of 5,000 of which the fi rst increased mechanisation and Energy Effi ciency (SAVE) programme programme was launched in productivity enhancement measures by the Ministry of Energy, Green September 2011 with a target besides helping to build capacity of Technology and Water (MEGTW). participant of 150 in Q4 2011. SMEs. SMEs should leverage on Government initiatives under the these opportunities and subscribe NKEA and 10MP will also focus • National Talent Enhancement to best practices and international on increasing international market Programme (NTEP) under SRI standards to evolve to become access; enhancing skills training for Human Capital Development international players, thus potentially both technical and management creating some regional and global personnel via partnership with The NTEP is a 12-month champions that can spearhead the the industry; enhancing linkages programme to help develop economy to achieve the country’s in the downstream industries to industry-relevant skills via aspirations. optimise resources, facilities and partnerships with E&E services available at the integrated companies. NTEP is open to While the ETP will see the private petrochemical complex; expanding engineering graduates with sector assuming the driver’s role of opportunities in logistics and 1– 2 years working experience taking lead in most of the initiatives maritime business activities; and and wish to upskill/re-skill in identifi ed under the EPPs, the strengthening oil and gas related the area of E&E and green Government will act as a facilitator professional services in line with technology. There are a total of and catalyst for growth, particularly creating international champions 550 placements for the fi rst year in promoting a vibrant business such as in oil fi eld services and of this programme. The NTEP ecosystem for SMEs to thrive. equipment (OFSE), those related targets 100% employability upon This will pave the way for SMEs to to deep water extraction and completion of the traineeship. achieve the quantum leap in growth integrated service providers. for increased contribution to the • High Performing Bumiputera economy and to at par with SMEs in In the latest announcement, three SME Programme (TERAS) under the developed nation. programmes were announced the SRI Narrowing Disparities. under the Strategic Reform This Programme aims to develop
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76225 SME AR 2010n11.indd 90 11/10/11 2:25 PM Success Stories
Striking Agriculture Gold in the Klang Valley 92
Avialite Lights Up the International Arena 94
Finding Success in a Low-Cost Business 96 Model
Investment in Sanctuary for Swiftlets 98
Carving a Niche in the Healthcare IT Solution 100 Market
Taking the Sarawak Layered Cake to the 102 International Market
Halal Healthcare Products Penetrating the 104 Global Natural Wellness Industry
Walai Tokou Homestay Turns a Remote Village 106 into a Tourist Spot
76225 SME AR 2010n11.indd 91 11/10/11 2:25 PM 92 Modern agriculture has evolved tremendously over the years and in order to be successful, entrepreneurs and farmers must also keep abreast with the latest technology and methods to stay ahead of the game
STRIKING AGRICULTURE GOLD IN THE KLANG VALLEY
As a freight forwarding agent for 17 of water and fertiliser are delivered others is that you must persevere years, Encik Hamid Yahya realised via specially-laid hoses to each and never give up. Putting that that the agriculture business offers polybag using an automated system. failure aside, I tried everything from abundance opportunities and can growing cucumbers to returning be a very lucrative business. This With chili prices hitting as high as to chili,” said the 40-year-old who is due to the fact that Malaysia is a RM16 per kg at the time, Encik today has emerged as one of the net importer of food produce. Five Hamid was able to make quite a most successful and exemplary years ago, Encik Hamid formed De handsome profi t in his fi rst venture. agri-entrepreneurs in Selangor. Lima Tani Enterprise and ventured Subsequently in 2009, he invested in into a new world of growing chili, a another acre of chili and successfully From chili, Encik Hamid has since bold decision infl uenced by the fact harvested seven tonnes at a time moved on to growing Japanese that more than 50% of the domestic when the crop commanded a rock melon which appears to have chili supply originated from abroad. market price of between RM5 and more stable prices of between RM10 per kg. His third and even RM3.30 and RM3.90 per kg Encik Hamid’s fi rst venture into bigger venture which was a four- currently. Unlike chili, which can agriculture was to grow an acre acre plot in Pulau Indah, Klang, only be harvested twice in a year, of chili. Instead of relying on however, proved to be a downfall rock melon can be harvested every conventional methods, he took a as chili prices plummeted to as low 75 days and this presents Encik new approach known as fertigation as RM1 per kg caused him to lose Hamid with even better returns. system. The fertigation system RM100,000 of his investment. On average, an acre of rock allows for cash crops such as chili melon is capable of producing a to be grown in polybags, where “That was a very costly misfortune yield of between fi ve and seven irrigation and fertilising needs and I was literally left with no other tonnes which is equivalent to requires little supervision with the choice but to abandon harvesting about RM21,000 per harvest. use of more practical and effi cient those four acres. The most methods in which precise dosages important lesson I can share with
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Today, Encik Hamid is also “If you look at agriculture today, it is “Venturing into agriculture one of the 11 participants of a no longer a case of planting, waiting presents a very big yet often programme by the Lembaga and harvesting. Modern agriculture unseen opportunity to farmers and Pertubuhan Peladang under the has evolved tremendously over the entrepreneurs in the Klang Valley. Ministry of Agriculture and Agro- years and in order to be successful, The Klang Valley is the epicenter based Industries, covering 11 entrepreneurs and farmers must of agriculture in Malaysia. Unlike acres rock melon farm in Selangor. also keep abreast with the latest farmers in other parts of the country In addition to his one- acre plot, technology and methods to stay who may need to incur four to seven he also runs another three acres ahead of the game.” Contrary to hours transporting their goods in nearby Kampung Perapat in belief that the shortage of land as a here, farmers in the Klang Valley are Klang, alternating between growing result of rapid development in the within minutes and a short trip to a rock melons and chili. Having city has discouraged the growth number of wholesale wet markets, experienced his fair share of pitfalls of agriculture in the Klang Valley, hypermarkets and other collection and refi ning methods in using the Encik Hamid said the fertigation areas which signifi cantly reduces our fertigation system, Encik Hamid system essentially does away with operating and transportation costs.” now offers consultancy services the pre-requisite for large plots of and complete fertigation systems land. In fact, the fertigation system Looking towards greener pastures, for entrepreneurs and budding permits cash crops to be grown Encik Hamid now intends to grow farmers who want to switch from anywhere from the rooftop of his export market, which has already conventional farming to modern buildings to essentially any open been given a signifi cant boost by agriculture. A complete fertigation spaces so long as the land does his fi rst shipment of rock melons system costs RM35,000 per not have a gradient which would to Dubai, China and Singapore. acre but the investment is worth otherwise interrupt with the fl ow In addition, he is also currently the value as it is a productive effi ciency of water and fertiliser. experimenting with growing basil method that will help budding acquired from neighbouring country, farmers in crop plantation. Thailand using the fertigation system to be exported to the United States.
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To grow as a company, we believe that there must be a transition from trading to engineering and consequently to designing and manufacturing
AVIALITE LIGHTS UP THE INTERNATIONAL ARENA
One of the fastest growing brands most customers. It had reached to a was required to produce lights of aviation lights in the international point where the currency exchange that were even brighter, more cost market today is AVIALITE. Especially rate made the prices of lights effective in terms of pricing and in such a specialised fi eld, it would exorbitant and it was precisely then more reliable in order to be able to have been unimaginable to think that that we felt, why not design and compete against its predecessors the brand is 100% conceptualised produce our own range of locally- and ultimately gain acceptance of and made in Malaysia. made lights,” said Ms. Leng Hee, its customers. In 2004, AVIALITE the company’s Head of International began the production of its fi rst AVIALITE Sdn Bhd’s story began Marketing. She also added that the range of lights and later that year, as an importer of aviation lights company had invested in the idea successfully penetrated into the who supplied to the various and devoted signifi cant resources overseas market with Brunei telecommunications companies in to research and development which being its fi rst customer. Its export Malaysia. The company located in subsequently resulted in a uniquely- market progressively expanded Taman Perindustrian Bukit Serdang designed and patented pending to Indonesia, the Philippines and in Seri Kembangan, Kuala Lumpur, waterproof LED aviation light. several countries in the Middle transformed its business in 2004 East. By 2008, AVIALITE managed from mere trading to specialising “We’d like to think of this industry to penetrate into the Australian in design and manufacturing of its as a very niche and specialised market in which a customer had own unique range of aviation lights. market because there are not many sought its expertise to develop a producers in the world. In Malaysia, custom-made lighting solution. “Manufacturing of aviation lights we were the fi rst and until today, the AVIALITE’s encapsulated waterproof was previously a business that was only company doing it. I suppose aviation lights uses a special epoxy predominantly monopolised by this is mainly because the industry material casing that makes it those in the Western countries and is very often perceived by many resistant to rain, sand storms, heat to a large extent, prices of these as a diffi cult market to tap into.” In and cold weather and eventually specialised lights were extremely order to penetrate into the market, giving the company a competitive expensive and beyond the reach of Ms. Leng recalled how AVIALITE advantage in the market. The
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decision by customers to use LED attributed their success to the fact of products to venture into lighting lights also signifi cantly outshines the that they have not only managed requirements for the oil and gas use of incandescent lights as LED to design and manufacture their industry, street lighting and air fi eld lights are brighter, and consume own unique and patented range (aerodrome) lighting. “To grow as less electricity thus resulting in of aviation warning lights, but in a company, we believe that there huge cost savings for customers. the process has helped to reduce must be a transition from trading AVIALITE’s LED lights which are the prices of such equipment to to engineering and consequently sourced from the major LED more affordable levels. AVIALITE’s to designing and manufacturing. manufacturers also have a lifespan success in the export market, For Malaysian companies to of 100,000 hours which if used at an Ms. Leng said, was also attributed to enjoy continued success in their average of 12 hours per day, would participating in Government-initiated respective fi elds, one must have last 21 years before it ever needs visits abroad frequently organised by industry experience and possess to be replaced. All of AVIALITE’s organisations such as the Malaysia the knowledge and expertise to products fulfi ll and conform to External Trade Development design and manufacture its own the stringent requirements and Corporation (MATRADE) range of products,” Ms. Leng regulations of the International and Malaysian Investment said. “The ability to design and Civil Aviation Organisation. Development Authority (MIDA). manufacture also allows a company Tested by SIRIM, its products to choose its own markets and comply with British standards Moving forward, AVIALITE has dictate who the company wishes to and are approved by Malaysia’s already set its sights on introducing sell to. The world is essentially the Department of Civil Aviation (DCA). its range of products in new market for any local company. Our The company’s products also markets such as Cambodia, market is limited by its population come with a two-year unlimited India and Bangladesh. and in some cases easily saturated. international manufacturer warranty. Ms. Leng described these as Therefore, Malaysians must go out potentially big markets due into the export market. While it may Today, 90% of AVIALITE’s aviation to its population size and the seem as a tall order, with enough lighting solutions are exported with rapid development of the perseverance and determination, its biggest markets led by Indonesia, telecommunications industry in it is nevertheless possible.” the Philippines, Vietnam and these countries. The company is countries in the Middle East. They also hoping to diversify its range
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Enhancing and maintaining a high degree of customer service has always been the driving force behind the success of SkyBus Ventures
FINDING SUCCESS IN A LOW-COST BUSINESS MODEL
Mr. Christopher S. Thiagarajah Many were initially skeptical of While Mr. Christopher’s venture left his secure job as the head of his concept and were stunned received the blessing from the marketing in Boh Plantations Sdn by the RM9 bus fare proposed. various industry stakeholders, the Bhd 15 years ago to set up his own However, after facing many company’s business had been consultancy fi rm that deals with taxi obstacles and challenges, through single-handedly fi nanced using and bus advertising among others. sheer perseverance, determination his own savings and commercial At that time, the entrepreneur from and courage to venture into the hire purchase loans. “For this I am Banting, Selangor heard about unknown, Mr. Christopher eventually indeed very grateful to our panel of the construction of the Low-Cost convinced the relevant authorities on bankers who have put their trust Carrier Terminal (LCCT) and he the merits of the idea. Thus, in 2006 and belief in the business model felt that a business opportunity he established SkyBus Ventures and helped us to where we are might be awaiting him. The idea Sdn Bhd, a low-fare budget bus today. I am equally grateful to the of a low-fare bus service from the transportation company which Government for helping make this city to the airport was conceived covers the route between KL Sentral business a reality. From the very fi rst and he forwarded his proposal to LCCT. Skybus has been serving day of our operations, we already to the then Commercial Vehicles transportation requirements from had people using the service. Within Licensing Board (CVLB) for their the city to the LCCT at Sepang months, our buses were ferrying full approval. For this concept to be from the very fi rst day the airport loads of passengers to the airport. successful and work effectively, the terminal was opened on 23 March Subsequently, we experienced pick-up and drop-off points in the 2006. Today, Mr. Christopher long queues”. Operating a non- city had to be at the Kuala Lumpur has proven that the low-cost stop service, the company now (KL) Sentral due to its strategic ground transportation concept has a fl eet of 27 air-conditioned location in terms of connectivity can be a profi table business. coaches and has ferried some and easy access to the public. 4.5 million passengers averaging 4,000 passengers per day.
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Over the last fi ve years, the company SMEs, the Brand Laureate - The Enhancing and maintaining a high has been able to sustain a profi table SMEs Best Awards (for Corporate degree of customer service has business and at the same time Branding-Best Brands in Passenger always been the driving force behind retain the fares at RM9 despite the Transportation (Bus) and the success of SkyBus Ventures. higher fuel prices, toll charges and Mr. Christopher was also a In fact, customers can call the challenges from the global fi nancial top nominee for the Ernst & company’s customer service number crisis. Mr. Christopher was able to Young Entrepreneur of the Year at any time and be assured of the manage the rising costs effectively Award (Emerging Entrepreneur phone call being picked up. Safety as his mantra has always been to Category). In 2010, Skybus is also a top priority of the company. reduce unnecessary expenditure. received a Certifi cate of Merit for He also believes that in addition the Star Outstanding Business “We take customer service and to its low fare, the company’s Awards 2010 and was a winner passenger safety very seriously. success has been fi rmly built on for the second time in a row of We have made signifi cant strides the convenience and quality service the Enterprise 50 Award 2010. in building a dependable brand it offers to the passengers. “A bus Mr. Christopher was also recognised which remains the bedrock of our leaves the terminal as scheduled for his efforts by the Entrepreneurs’ business. Although the business every 30 minutes and on average, Organisation Malaysia in May 2010 is tough as each day presents the 80 km trip from KL Sentral to and won the “Inspiring SME- new challenges, we shall continue the LCCT in Sepang takes one hour Risk Taker” Award by the Global to fi nd ways to enhance our and fi fteen minutes. This allows Entrepreneurship Week (GEW) service. My advice to budding passengers to effectively plan their Malaysia in November 2010. entrepreneurs is always to have travel to and from the airport.” persistence and never give up. “I try to inculcate into my staff I would never have been able to For the company’s contribution and the philosophy that their job is start this business if I did not have level of service excellence, SkyBus an extension of homes and they this determination and patience.” won the Malaysia Airports Bhd. have to love coming to work. Service Quality Award in 2006, the I am indeed grateful that about Enterprise 50 Award in 2009, the 75% of the staff with me today, Golden Bull Award for Outstanding are those who joined me when I fi rst started this business.”
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INVESTMENT IN SANCTUARY FOR SWIFTLETS
In support of the Government’s was raking in RM15,000 per month cleaned swiftlet nests can go up to initiative to further grow and promote and has been harvesting swiftlet as high as RM8,000 per kg. On swiftlet farming in Malaysia, Walit nests for more than six years. average, about 120 nests equates World Sdn Bhd ventured into a to about 1 kg. According to Encik very niche market of the industry “I was equally sceptical as much Mohd Nasir, prospectors can gain to offer to prospective swiftlet as frightened when I made my an income of up to RM15,000 farmers specially-built homes for initial investment. However, with per month between three and fi ve these birds. Walit World is the the right home design and proper years with an average yield of 8 - brainchild of Encik Mohd Nasir techniques, the swiftlets did indeed 30kg per year after the fi fth year Che Fa who is today also the began nesting,” he recalled. “Of of harvesting. Normally, harvesting project director for the pilot project course, just like any business is done once every three months at Tanjung Agas Ecopark. A civil venture, there is no guarantee that after the fourth year and once a engineer by profession, then later the business will succeed and in month by the fi fth year. Success, a contractor and developer, Encik this case, there is no guarantee that however, is dependent on choosing Mohd Nasir’s venture into swiftlet the birds will nest in these specially- the right location for swiftlet farming farming occurred by accident after built homes. However, swiftlets are where there is an abundant food a chance meeting with a successful known to be very loyal and once source for the birds. In addition, the Indonesian farmer during a visit to they nest in a particular area they design of the swiftlet home must one of his development projects are unlikely to move and will stay also have the right temperature and in Jakarta in 2007. His growing forever.” Studies on swiftlet farming humidity conducive for breeding. interest in swiftlet farming led him to have revealed that prospectors can another individual in Rantau, Negeri collect up to ½ kg nest within one To date, the company has already Sembilan whose three-storey bird to two years, with the market for obtained sales amounting to house was yielding him a turnover of 1 kg of raw swiftlet nests currently RM3.84 million from the sale of RM50,000 per month. At about the commanding a price of between its two-and-a-half storey semi- same time, a friend in Terengganu RM4,000 and RM5,000, while detached cluster homes for swiftlets.
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The unique point about Walit World’s business of swiftlet farming. With Prospectors can swiftlet home ownership programme a built-up area of 2500 square feet is that it is similar to that of owning and located on a 30x70 plot of gain an income of any real estate whereby the property land, each unit sells for RM320,000 up to RM15,000 per comes with an individual title. and comes equipped with all the month between necessary audio equipment required Encik Mohd Nasir said the to attract the swiftlets to nest in three and fi ve years company’s venture into a relatively these homes. Walit World not only with an average new business for Bumiputeras, acts as the developer for these yield of 8 - 30kg per was timely with the Government’s swiftlet homes, but also assists initiative to aggressively in developing the capability of the year after the fi fth promote swiftlet farming under owners to manage the homes and year of harvesting the Economic Transformation harvesting the nests on behalf of Programme (ETP). The market for home owners and investors. swiftlet nests is extremely huge and realising this, the company Moving forward, Encik Mohd would like to be in the frontline of Nasir told that Walit World is in the encouraging more Bumiputeras process of identifying a variety of to become part of this lucrative downstream business opportunities industry. In fact, construction of a and in turning swiftlet nests into pilot project situated on a 13-acre a range of locally-manufactured Malay Reserve Land in Tanjung products. One such product Agas Ecopark in Port Dickson is Walit World has already recently currently underway to build clusters introduced is bottled bird’s nest of two-and-a-half storey semi- drink and bird’s nest juice. detached homes for swiftlets which the company is offering for sale to customers who are looking to get a head start into the lucrative
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CARVING A NICHE IN THE HEALTHCARE IT SOLUTION MARKET
When Mr. Ravishanker established a patient’s medical history can include the implementation of Centium Software Sdn Bhd in be comprehensively reviewed at Centium Software’s Hospital 1998 (then known as Applied any time. The company’s fi rst big Information System (HIS) into Voice Technologies Integration break came in the same year when hospitals owned by the Hoan My Sdn Bhd), the intention was to it was commissioned to develop Group, a public listed company support his core business of selling the solution for the Government of that operates the largest chain of telecommunications hardware by Pakistan. private hospitals in the country, as offering voice related technologies. well as installation of software at the Little did he know that 12 years A year later, the business took State-owned Becamex Hospital, later the company would have a quantum leap when Centium Yersin chain of private clinics and successfully positioned itself as Software was commissioned to the Hoam Lam Shangri-La. The the pioneer software developer in maintain and develop enhancements company’s latest overseas conquest the extremely lucrative healthcare to the medical record system is the development of a blood industry. of the Columbia Asia Hospital bank information system for the in Seremban, Negeri Sembilan Government of Cambodia. The company’s path to success followed by an invitation to began in 2004 when the company the hospital’s headquarters in Today, Centium Software’s solutions ventured into what is known Bangalore, India. One venture led are installed in more than 20 today as the Electronics Medical to another and by end of 2006, hospitals in four countries. Other Records using the smart card the company had also set foot than offering customised software technology. The general idea in Indonesia through a project in applications in HIS, the company’s behind the venture was to create the Brawijaya Hospital as well as remarkable services also extend to a cradle to crypt medical and penetrated into Vietnam. Currently, the areas of Centralised Sterilisation health records of patients whereby the company’s projects in Vietnam and Supply Department (CSSD),
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Blood Bank Information System especially when you have Malaysian venture with University Malaya (BBIS), Diet Management System software accepted by clients in India Specialist Centre (UMSC) to create (DMS) and many other integration which is known to be the IT centre a medical records system for its works. of the world,” said Mr. Ravishanker. Health Metropolis network at its Petaling Jaya campus. “The greatest challenge in this Despite enjoying years of success business has been in trying to abroad, Mr. Ravishanker is To continue offering breakthrough convince our clients on the quality somewhat dissapointed that his IT solutions, Centium Software and reliability of our product. Even in solution have not gained a foothold has also announced that it is countries like Vietnam for example, in the domestic market. Centium collaborating with University the fact that the software solution Software is still trying to convince PETRONAS to pursue research in being offered originates from Malaysian hospitals, clinics and the areas of Autonomous Service Malaysia creates a lot of scepticism. health institutions to “go local” as Oriented Architecture in Healthcare We practically had to fl y our potential the current practice still favours the Informatics, Collaborative Medical customers from Vietnam to Malaysia use of foreign-developed solutions. Diagnosis and Decision Making to visit the hospitals that are The company has been working System in Cloud. currently using our system and to with the private sector in which it assess its effectiveness in order for recently signed a memorandum of Our success in them to be truly convinced,” recalled understanding with IRIS Healthcare India is quite an Mr. Ravishanker. to produce healthcare technology. accomplishment for Some of the initiatives with IRIS “Much of this scepticism arose from Healthcare include a national the company. It is like the fact that Malaysia is more known initiative for Malaysian citizens to selling ice to Eskimos for its commodities and there is very incorporate their medical records little awareness that the country is into the MyKAD; the development especially when emerging as a competitive player of a Diagnostic Services Nexus you have Malaysian in terms of software development. (DSN) under the Healthcare National software accepted by Our success in India is quite an Key Economic Area (NKEA) of accomplishment for the company. the Economic Transformation clients in India which It is like selling ice to Eskimos Programme (ETP); and a joint is known to be the IT centre of the world
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From an annual sales of RM216,000 in 2009, demand for Wannie Enterprise layered cakes had increased by three- fold in just one year in which the company successfully recorded sales increase of 200% in 2010
TAKING THE SARAWAK LAYERED CAKE TO THE INTERNATIONAL MARKET
From a home-based business that evolved into becoming novelty Throughout the years, Puan Zoraidah evolved around baking layered corporate gifts. Puan Zoraidah had also gotten assistance from cakes or better known as kek lapis subsequently obtained fi nancing other Government bodies such as during festivities, Puan Zoraidah Haji from local fi nancial institutions to the Ministry of International Trade Leen has successfully established help her expand her business to and Industry (MITI) to participate a profi table venture which in 2010 the current operations. Wannie in domestic exhibitions, Tabung raked in a sales turnover of more Enterprise was also fortunate to Ekonomi Kumpulan Usaha Niaga than RM600,000. Today, besides have received a matching grant of (TEKUN) for fi nancing and the operating a layered cake processing RM100,000 from SME Corporation Malaysian Pepper Board for research facility, she also owns two sales Malaysia (then known as Small and and development activities in outlets in Kuching, one in Satok and Medium Industries Development inventing a new fl avor, pepper and the other in Tebingan Sg. Kuching, Corporation or SMIDEC) under pepper-mint based layered cake. Sarawak which serves as the the Business Start-up as well marketing arm for her products. as Development and Promotion Despite the strong support from the of Halal Products schemes. Government, Puan Zoraidah faced Puan Zoraidah began her business numerous challenges in carrying out on a modest scale when it fi rst From the Sarawak Agriculture her business. When she fi rst began, took off in 1985 as she baked department, she received assistance she could not accept large orders and supplied cakes to individual in the form of machinery and as she was manually processed customers during Hari Raya, Chinese equipment, while agencies such as the layered cakes. She also faced New Year and other festivals. She the Federal Agriculture Marketing extreme diffi culty in employing good worked her way up by using her Authority (FAMA) and the Malaysian workers. This was compounded savings of RM50,000 to establish a Agriculture Research Development by the fact that the increase in raw company called Wannie Enterprise. Institute (MARDI) supported her material prices had caused the price The turning point came in 2000 when venture in terms of purchase of of cakes to trend upwards and the she began catering to corporate machinery, consultation in marketing, absence of standard pricing of cakes clients in which layered cakes had branding and the use of technology. in the market caused stiff competition.
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The latest obstacle was the ban perfect gift for those returning from producer of Sarawak layered cakes imposed on the Golden Churn Sarawak. With an estimated 1.4 as well as pastries recognised for butter which was widely used in million tourist arrivals in Sarawak, its unique taste, quality, cleanliness the production of layered cake. it is indeed a profi table business to and being Halal certifi ed. The The news had affected the whole venture into,” said Puan Zoraidah. company has moved ahead to layered cake industry including establish a strategic collaboration Wannie Enterprise. In dealing with From an annual sales of RM216,000 with Universiti Malaysia Sarawak or the issue, Wannie Enterprise took in 2009, demand for Wannie UNIMAS in the area of research and the initiative to clean the baking Enterprise layered cakes had development to develop a fully- area and utensils using the Islamic increased by three-fold in just automated layered cake processing way and was the fi rst company to one year in which the company machine. Wannie Enterprise has do so. The quick action has not successfully recorded sales increase applied for a RM300,000 grant only managed to curb the issue of 200% in 2010. Wannie Enterprise to develop the machine from the at hand but to restore customers’ is scheduled to open another sales Ministry of Science, Technology confi dence in their products. outlet in Tebingan, Kuching and with a and Innovation (MOSTI), which it more aggressive sales and promotion believes would resolve the challenge To further promote the Sarawak strategy, the company is targeting to of obtaining good quality workers layered cakes, Puan Zoraidah had hit sales amounting to RM1.0 million and increase production volume. participated in a number of local in 2011. Greater use of automation and international exhibitions, in in the processing of layered cakes Looking back at her company’s addition to advertising in popular will enable the company to enhance success, Puan Zoraidah attributes local magazines, radio stations productivity and effi ciency and it to focusing on quality by and being featured on television prepare towards penetrating into the producing layered cakes that are programmes. The company has also export market mainly to countries tasty, unique and at the same sought the social media platforms in the Middle East, which Puan time competitively priced. The like Facebook, and sponsored its Zoraidah believes would potentially company has also been sensitive cakes as corporate gifts at selected yield sales amounting to between to the needs of its customers, and conferences and events. “There is RM5 and RM10 million per year. believes in continuously improving tremendous potential for Sarawakian both its products and services layered cakes as it is very popular Moving forward, Puan Zoraidah based on the Kaizen principles among the locals and tourists. Its envisions Wannie Enterprise to grow (continuous improvement). unique design and taste makes it a into an internationally-renowned
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In slightly more than fi ve years, the company has been able to gain the trust and establish good relationships with large reputable customers that currently market products domestically and in the respective international markets they are present
the business environment within HALAL HEALTHCARE PRODUCTS which they chose to operate all the more challenging as healthcare PENETRATING THE GLOBAL is a very knowledge-intensive industry. “As soon as we started NATURAL WELLNESS INDUSTRY the business, the focus was all about having the right employees, Guided by the philosophy of enough in life to have a mentor getting our quality control and “Making People Healthy Naturally” like my previous boss, I learnt a standards in place, and at the and fueled by the huge potential great deal of professionalism and same time getting the customers for Halal healthcare products, values in business and experienced in,” recalled Puan Shahnas. Natural Wellness Holdings Sdn a sharp learning and growth Bhd is enroute to become one of curve,” she recalled, adding that As the company’s wealth of the market’s leading manufacturer on February 10, 2006, she and knowledge, experience and market of Islamic and fully Syariah Dr. Yacout, agreeing on the acceptance grew, it gradually compliant healthcare products. prospects of business, incorporated evolved to establish a quality Natural Wellness Holdings Sdn management system from the Natural Wellness was established Bhd. Puan Shahnas took on the perspective of Islam. This led to in 2006 by Puan Shahnas Oli role of Director, while Dr Yacout Natural Wellness products being Mohamed. Graduating as a assumes the position of Chairman certifi ed not only as Halal, but pharmacist in 1994 and upon and Advisor of Natural Wellness its entire business process were completing her housemanship which is based in Taman Midah Syariah compliant. In 2008, Natural the following year, she took the in Cheras, Kuala Lumpur. Wellness became the fi rst company bold decision of venturing into in Malaysia to be awarded the MS the corporate world at a time Natural Wellness was formed on the 1900:2005 Quality Management preference was to serve in the public philosophy of being unconventional Systems: Requirement from Islamic sector. There, she met her current and innovatively true to the Perspectives. This accreditation business partner, Dr Amr Yacout, Islamic faith by not just offering was also a signifi cant breakthrough an Egyptian, who went on not just products that are certifi ed Halal as it automatically expanded the to become her fi rst boss but also but also running the business in a company’s list of potential customers a guiding light in her career right comprehensive syariah compliant to the 1.6 billion Muslims worldwide. from the early days. “I was fortunate manner. This idea by itself made
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Puan Shahnas described the in the pipeline of being validated, the APEC Woman Innovator healthcare market, including the accredited and introduced into the Award. Besides this, she also had natural products space, as being market. In slightly more than fi ve the distinction of being named a fashionable industry given its years, the company has been able the Asia Pacifi c Most Promising constant and sometimes rapid shift to gain the trust and establish good Entrepreneur in 2010. Sharing her in interest and direction resulting relationships with large reputable views of the healthcare industry in from consumer demand and as customers that currently market general, Puan Shahnas said: “There such, a product’s average life cycle products domestically and in the is a lot of hype marketing which in the industry is one that is most respective international markets are not scientifi cally-based, unlike challenging to manage. At Natural they are present. Natural Wellness our products. Our mission is to Wellness, a product’s life begins also exported their products to the create products that are backed by in their Bionexus status research Kingdom of Saudi Arabia, the United science and time tested and also and development laboratory Arab Emirates, the People’s Republic one that is assured of its therapeutic facility where the company’s team of China, Australia, the United benefi ts which consumers can of biotechnologists, chemists, Kingdom, Japan, Myanmar, Thailand testify to. Natural Wellness products nutritionists and researchers work and Indonesia among others. conform to a comprehensive range towards establishing and identifying of accreditations and certifi cations molecules and ingredients with Puan Shahnas attributed the besides being approved by the medicinal properties. The constant company’s success to its continuous respective regulatory bodies in efforts to strive for excellence has investments and emphasis in the countries we are present. led Natural Wellness to champion research and development. Their Natural Wellness currently also the research into vegetation effort was well rewarded when has the distinction of being the inspired by knowledge gained from Natural Wellness was awarded the only healthcare company to have the Al-Quran and the Hadith. SME Innovation Award for Halal received the Malaysian Brand Products and Services at the 2010 certifi cation. Collectively and Today, Natural Wellness has SME Innovation Awards by SME cumulatively the combination successfully introduced some 80 Corporation Malaysia. At the recent of being accredited and award- different types of products ranging APEC Women and the Economy winning is the very essence of from supplements, nutraceuticals, Summit held in San Francisco how Natural Wellness products over-the-counter products, health USA in September 2011, Puan are outstandingly differentiated food and beverages, and cosmetics, Shahnas in her personal capacity, from other market players.” with another 40 to 50 products was honored when she received
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WALAI TOKOU HOMESTAY TURNS A REMOTE VILLAGE INTO A TOURIST SPOT
In native Dusun, Walai Tokou means an initial loan of RM20,000 from Walai Tokou Homestay has a total “our home” and it is precisely this Bank Kerjasama Rakyat (M) Berhad of 50 participating villagers from 8 warm welcome and embrace that (Bank Rakyat), Encik Kohadie began village with some 95 rooms available greets tourists when they visit and upgrading the rooms, toilet and in total to guests at the village. stay with the villagers who have landscape of the house to attract come together today to establish and provide comfort for the tourists. “Perhaps one of the biggest the Walai Tokou Homestay in obstacles we faced in the early Kampung Sinisan, Ranau, Sabah. One year later in April 2001, the stages was to change the mindset of Walai Tokou Homestay opened villagers and in trying to make them The Walai Tokou Homestay its door to the fi rst 60 guests understand and see the benefi ts of was inspired by Encik Kohadie who arrived in Ranau to attend a the homestay business concept,” Watiman who in 1999 saw the three-day management course said Kohadie. “It took some time potential in such a business organised by the Institute for Rural to convince them but as soon as venture. Driven by the burning Advancement (INFRA). Over the next they began to see how homestays desire to learn more about few years, Walai Tokou Homestay could contribute and supplement the homestay concept which has steadily gained its popularity and their existing income, they supported managed to turn ordinary villages in 2006, won the Pertandingan the idea. Today, the number of into popular tourist attractions, he Ilham Desa competition for Sabah homestay participants is not only travelled to Peninsular Malaysia, and Sarawak zone, before going increasing but our collective efforts Thailand and Japan to visit some on to be crowned the national level over the years have also successfully of the successful homestays. That winner for the same competition put our village on the tourist map experience was an eye-opener to the following year. It also won fi rst after receiving various accolades.” convince him that Kampung Sinisan place in the homestay category had the potential of becoming an in the One District One Industry attractive tourist destination. With (SDSI) competition. Today, the
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Encik Kohadie said Walai Tokou Sharing his experience with other development of infrastructure; and Homestay was also fortunate to potential homestay operators, marketing and promotion. The have continued to receive loan Encik Kohadie said one of the development of human capital facilities from Bank Rakyat and most important elements of would ensure that that the services Agro Bank throughout its journey. business is that it demands offered at homestays could be In addition, Walai Tokou Homestay entrepreneurs be bold better regulated in that it observed benefi ted from various training enough to venture into something a certain level of standards. programmes in marketing and new and determined to see the Assistance in terms of infrastructure, promotion provided by the Ministry project through. Equally important and marketing and promotional of Tourism, Ministry of Rural and is for a new homestay operator is activities meanwhile would enable Regional Development, Tourism to make sure that the place has operators to lower their operating Malaysia and Ministry of Tourism, adequate facilities. cost and devote greater fi nancial Culture and Enviroment Sabah. resources towards enhancing “The level of success and facilities at their homestays. Moving forward, Encik Kohadie said popularity a homestay enjoys is plans are currently underway to also dependant on the operator’s The level of success expand the Walai Tokou Homestay ability to devise a strategic into a new concept he defi ned as marketing plan to promote their and popularity a Kampung Stay. Unlike homestays village and facilities. It is a profi table homestay enjoys is in which tourists experience the business provided operators local life by staying with participating are prudent in spending and also dependant on villagers, Kampung Stay will enable embrace good business the operator’s ability tourists to rent an entire village ethics,” Encik Kohadie said. to devise a strategic home for an even more enriching experience plus greater privacy. A Encik Kohadie made an appeal marketing plan separate and even bigger project for the Government to continue to promote their involves a proposed full-blown providing assistance to homestay village and facilities resort in nearby Kundasang operators in three key areas: and Ranau. human capital development; the
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Appendix 1: Key Statistics on SMEs 111
Appendix 2: List of SME Development 117 Programmes in 2011
Appendix 3: Glossary 159
Appendix 4: Defi nition of SMEs 181
76225 SME AR 2010n11.indd 108 11/10/11 2:26 PM Appendix 1 : Key Statistics on SMEs
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Key Statistics on SMEs
Table 1: Number of Establishments by Sector
Total Total Sector Micro Small Medium Total SMEs Large SMEs Establishment Number of Establishments % Share Number Number Manufacturing 21,516 15,796 2,061 39,373 7.2 1,420 40,793 Services 381,585 83,037 10,084 474,706 86.6 2,819 477,525 Agriculture 31,838 1,775 575 34,188 6.2 343 34,531 Total SMEs 434,939 100,608 12,720 548,267 100.0 4,582 552,849
Source: Census of Establishment and Enterprises, 2005 by Department of Statistics, Malaysia
Table 2: Number of SME Establishments by State
Sector Micro Small Medium Total SMEs % Johor 45,630 9,485 1,356 56,471 10.3 Kedah 33,531 3,066 432 37,029 6.8 Kelantan 34,075 1,528 198 35,801 6.5 Melaka 16,520 2,696 407 19,623 3.6 Negeri Sembilan 14,911 2,275 369 17,555 3.2 Pahang 24,917 2,742 399 28,058 5.1 Pulau Pinang 21,422 4,527 803 26,752 4.9 Perak 37,872 5,567 691 44,130 8.0 Perlis 5,549 340 31 5,920 1.1 Selangor 73,273 22,396 2,854 98,523 18.0 Terengganu 22,112 1,415 207 23,734 4.3 Sabah 18,915 4,901 978 24,794 4.5 Sarawak 25,377 6,601 1,081 33,059 6.0 WP KL 60,835 33,069 2,914 96,818 17.7 Total SMEs 434,939 100,608 12,720 548,267 100.0
Source: Census of Establishment and Enterprises, 2005 by Department of Statistics, Malaysia
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Table 3: Value Added Growth of SMEs by Key Economic Activity, Annual Change in % (constant 2000 prices)
YEAR 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 Growth Rate (%) Agriculture 3.8 2.1 3.4 8.5 3.6 7.4 -1.4 7.3 2.2 5.0 Mining & -0.3 4.1 1.1 -3.6 -1.1 0.9 9.5 1.4 6.2 5.7 Quarrying Construction 4.6 5.9 5.2 1.0 4.7 3.2 13.2 3.7 7.2 8.6 Manufacturing -6.4 3.1 9.9 10.3 5.7 8.3 6.3 0.5 -6.6 11.8 Services 2.2 5.1 2.9 6.8 8.0 7.8 12.8 8.8 2.5 7.1 Total Value -0.4 4.6 5.2 8.3 6.9 7.4 10.0 6.4 0.4 8.4 Added
Source: Department of Statistics, Malaysia
Table 4: Contribution of SME to GDP by Key Economic Activity (constant 2000 prices)
YEAR 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 % share to GDP Agriculture 2.4 2.5 2.4 2.4 2.4 2.4 2.4 2.2 2.3 2.4 2.3 Mining & 0.05 0.05 0.05 0.05 0.05 0.04 0.04 0.04 0.04 0.04 0.04 Quarrying Construction 0.8 0.9 0.9 0.9 0.8 0.8 0.8 0.8 0.8 0.9 0.9 Manufacturing 9.2 8.5 8.3 8.7 9.0 9.0 9.2 9.2 8.8 8.4 8.7 Services 17.1 17.4 17.3 16.9 16.9 17.3 17.6 18.7 19.4 20.2 20.2 Less: Undistributed 0.9 0.9 0.8 0.8 0.8 0.7 0.8 0.7 0.7 0.7 0.7 FISIM Plus: Import 0.1 0.1 0.1 0.1 0.2 0.2 0.1 0.2 0.2 0.3 0.4 duties Total Value 28.8 28.5 28.3 28.1 28.6 29.0 29.4 30.4 30.9 31.5 31.9 Added
Source: Department of Statistics, Malaysia
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Ministry of Agriculture and Agro-Based Industry (MOA) 117 Ministry of Plantation Industries and Commodities (MPIC) 123 Ministry of Domestic Trade, Co-operatives and Consumerism 125 (MDTCC)
Ministry of Energy, Green Technology and Water (MEGTW) 128 Ministry of Finance (MOF) 129 Ministry of Human Resources (MOHR) 132 Ministry of Housing and Local Government (MHLG) 134 Ministry of Tourism (MOTOUR) 135 Ministry of Science, Technology and Innovation (MOSTI) 136 Ministry of Rural and Regional Development (MRRD) 138 Ministry of International Trade and Industry (MITI) 139 Ministry of Information Communications and Culture (KPKK) 143 Ministry of Youth and Sports (MOYS) 145 Ministry of Women, Family and Community Development 146 (MWFCD)
Ministry of Industrial Development Sabah (MID Sabah) 147 Ministry of Industrial Development Sarawak (MID Sarawak) 150 Bank Negara Malaysia (BNM) 152 Perbadanan Usahawan Nasional Berhad (PUNB) 153 Federal Land Development Authority (FELDA) 154
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Ministry of Agriculture and Agro-Based Industry (MOA) A) Enhancing Viability of SMEs across All Sectors
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • Development of Agro-based Industry • To develop comprehensive value chain of food in LPP Programme agro-based industry • Human Capital Development • Develop competent agro-based entrepreneur in LKIM fi shery and in terms of business and technical skills through integrated human capital development • Development of Agro-based Industry • Modernise and increase agro-based MOA Programme entrepreneurs’ production capacity and - Increase in Production Capability capability through mechanisation and automation and guided by technology and upgrading in processing premises towards food safety certifi cation • IAT Certifi cation Special Project – • Assist entrepreneur in product marketing MOA Promotion and Marketing improvement and expansion of company • Branding, Promotion and Marketing • Develop a better management in the fi shery LKIM industry in relation to marketing activities • Agro-Based Industry Programme • Develop competent agro-based industry MOA Training Courses entrepreneurs from business and technical skills aspects through integrated human capital development programme • Development of Agriculture Industry • To increase the volume of agriculture production Department of i. Development of Fruits Industry Agriculture ii. Development of Vegetables and Short Term Crops iii. Development of Coconut Industry iv. Development of Floriculture Industry v. Development of Fruit Crops • Integrated Cage Farming • Promote cage fi sh farming and high scale Department of hatchery headed by leading company using Fisheries modern farming method • Market Development and Distribution • Undertake promotion activities and market FAMA Expansion in Domestic and opportunities to export national agrofood International Market products • Marketing Development for Burung • Preparatory courses for entrepreneurs and FAMA Walit, Mushroom/Fungus and Herbal domestic marketing campaign in the country Products
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Ministry of Agriculture and Agro-Based Industry (MOA) A) Enhancing Viability of SMEs across All Sectors
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • Bimbingan Usahawan Programmes: • Provide training for young entrepreneurs to equip Department of 1. Pusat Bimbingan Usahawan them with technical and entrepreneurial skills to Agriculture 2. Agriculture Youth Entrepreneur be able to manage the agro-based food company Incubation Programme (IUBT) with an excellent culture 3. Agricultural Certifi cation Course • Provide participants with mentoring and hands- on experience in the agriculture fi eld, to become agriculture entrepreneurs who are more confi dent, skillful and competitive. Participant will be guided to become competitive, skilled and resilient entrepreneurs • Train skilled graduates in agricultural technology and to provide basic entrepreneurial necessities in the fi eld of commercial agriculture • Increase Quality and Product • Develop quality products with the purpose of LKIM Development ensuring IAT products that comply with food act, safe to be eaten from chemical, microbiology and physical • Improve product image from quality, design, packaging and labeling aspect to be competent and competitive in the market • Integrated Aquaculture Zone (IZAQ) • Develop an integrated high scale aquaculture Department of production park for production of high quality fi sh / Fisheries prawn that fulfi ll the export requirements • Focus on high quality prawn and fi sh species with consistent quality assurance and product safety • Marketing Development on Ready • Develop new distributors and to enhance / FAMA Crops for Exports strengthen existing distributors • Training Related to Quality and • Guidance and training of marketers in quality FAMA Safety of Marketers control of agricultural products • Entrepreneur Development • Develop technology-based entrepreneurs that are MARDI Programme able to compete in global market • Agro-based Industry Upscaling and • Accelerate the commercialisation process MARDI Commercialisation Process selected technologies by MARDI • Technology Commercialisation, • Transfer of commercialised technologies to MARDI Enterprise Development and SMEs / entrepreneurs and to provide consulting Capacity Building and advisory services
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Ministry of Agriculture and Agro-Based Industry (MOA) A) Enhancing Viability of SMEs across All Sectors
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • Building Capacity and Production • Modernise and increase agro-based LKIM Capability entrepreneurs’ production capacity and capability through mechanisation and automation • Fishermen Transformation • Improve from conventional to modern, commercial LKIM Programme and competitive fi shermen • Pineapple Planting Incentive for • Increase national pineapples production MOA below than 15 Acre • Increase small holder income • Good Agriculture Practice (GAP) - • Increases GAP compliance levels of entrepreneurs MPIB Training grant in course form and -give recognition to entrepreneurs which practice hands-on and farm visit GAP and GAP through programmes certifi cates such as SALM Skim Amalan Ladang Malaysia (SALM) i. Capacity development and • Develop pineapple entrepreneurs that are transfer of pineapple technology knowledgeable and skilled in pineapple crop to farmers management ii. Technology transfer course • Increase productivity of pineapple plantation and human development / visit through the use of latest technology and technical training iii. New technology acquisition • Seminar / Training / Courses • Improve the competitiveness of agro- MADA entrepreneurs among graduates • Development of Agriculture • Develop highly skilled and knowledgeable MADA Entrepreneurs entrepreneurs • Product Analysis • Analyse product for nutrition fact, by undergoing KADA microbiology and chemical test • Increasing Production Capacity • Agro-based industry entrepreneurs are to MADA increase the capability of production capacity through modern equipment and automation, as well as improvements in processing technology and premises of the entrepreneur • Diversifi cation of Agriculture Products • Increase the production of : KADA i. Vegetables ii. Fruits iii. Herbal plantation iv. Ducks v. Goats vi. Freshwater and decorative fi sh vii. Cattle
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Ministry of Agriculture and Agro-Based Industry (MOA) A) Enhancing Viability of SMEs across All Sectors
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • Agro food production • Making the MADA area as a hub for the MADA 1. Development of Mango Estate production of fresh products 2. Pembangunan Ternakan Burung • Making the MADA area as a hub for fi sh farming Walit • Making the MADA area as a referral center of 3. Pembangunan Estet Ikan technologies and training to farmers in lifestock 4. Feedlot Cattle Livestock • Improve socio-economic development of local Development residents 5. Agro-Tourism Development • Enhancing knowledge & skills: • Provide exposure to new entrepreneurs on the KADA i. Courses in the food processing processing of potential products unit farmers • Provide exposure to new and existing ii. Study tour for entrepreneurs entrepreneurs of successful IAT business iii. Entrepreneurial skills • Provide exposure to new and existing enhancement courses entrepreneurs on matters relating to the iv. Courses outboard food processing and marketing by providing both processing entrepreneurs craft theoretical and technical disclosure skills enhancement • Provide special exposure to entrepreneurs who run the craft business to maximize quality craft products • Commercialisation Programme • Increase the income of farmers in livestock (goat KADA meat) and decorative fi sh (Arowana) • Ladang Sungai Bayu (Agro Tourism) • Increase the income of farmers in tongkat ali KADA Programme plantation and deer farming • Tanah Tinggi Lodging Programme • Increase the income of farmers in agriculture KADA sector • Organic Agriculture Programme • Increase the income of farmers in the organic KADA agriculture sector through processing of organic fertiliser and organic plantation • New Commodity Programme • Increase the income of farmers and the KADA production of commodities (mushrooms, depu, Roselle, swifl et, goat’s milk and quails) • Income Increment Programme • Increase the income of farmers in cattle and KADA chicken feedlots
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Ministry of Agriculture and Agro-Based Industry (MOA) A) Enhancing Viability of SMEs across All Sectors
Strategic Thrust: Strengthening Enabling Infrastructure
Implementing Major Programmes Programme Objectives Agency • Permanent Food Production Park • To increase food production Department of (TKPM) Agriculture • Establishment of Centre for • Provide market access and market opportunities FAMA Marketing, Advisory and Distribution for agro-based products and enhance the capability of farmers and micro entrepreneurs to be commercially competitive • Fishermen Market • Encourage participation of fi shermen/ fi shermen’s LKIM family in the fi eld of entrepreneurship • Marketing Centre for Aquaculture • Establish well-equipped collection and fi sheries LKIM Fisheries marketing centre
Strategic Thrust: Enhancing Access to Financing
Implementing Major Programmes Programme Objectives Agency • Dana Nelayan • Enable the fi shermen to improve their standard of LKIM living • Small and Medium Scale Industry • Assist small entrepreneurs to expand current or Agrobank (SMI) Scheme ongoing agriculture projects • Youth Agriculture Scheme • Assisting youth to improve themselves in activities Agrobank pertaining to the agriculture and agro-based industries • Fund for Food (3F) • Increase food production in the country and Agrobank reduce food import • Agriculture Entrepreneurs Scheme • To reduce unemployment rate among graduates Agrobank for Graduates through careers in agriculture and to produce commercial graduate farmers
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Ministry of Agriculture and Agro-Based Industry (MOA) B) Promoting Bumiputera Participation in SME Sector
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • Business Quality and Enhancement • Develop and expose entrepreneurs into the new MOA foreign market
Strategic Thrust: Enhancing Access to Financing
Implementing Major Programmes Programme Objectives Agency • TEKUN Financing • Provide microcredit fi nancing for entrepreneurs in TEKUN the agriculture sector • Development of Bumiputera • Develop competitive and viable Bumiputera Agrobank Entrepreneurs through Bumiputera entrepreneur groups Commercial and Industry Community (BCIC)
Ministry of Agriculture and Agro-Based Industry (MOA)
Contact: Wisma Tani, No. 28 Persiaran Perdana, Precint 4 Tel: 603-8870 1000 www.moa.gov.my Pusat Pentadbiran Kerajaan Persekutuan Fax: 603-8888 6020 www.smeinfo.com.my 62624 PUTRAJAYA
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Ministry of Plantation Industries and Commodities (MPIC) A) Enhancing Viability of SMEs across All Sectors
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • TUNAS (Tunjuk Nasihat Sawit) • Assist smallholders to implement good agronomic MPOB practices (GAP) • Furniture Design and Making (FDM) • Provide opportunity for executives and fresh MTIB graduates to intensify industry knowledge and skills in furniture design and production • Entrepreneur Development • Increase participation of small enterprises / MPB Programme smallholders in the commodity sector • Entrepreneur Development • Encourage handmade chocolates, cookies MCB Programme for Handmade and confectionaries production, increase the Chocolate, Cookies and production capacity and to promote local cocoa Confectioneries and chocolate products • Improvement of Productivity, • Improve the capability and competitiveness of MRB Effi ciency & Quality of Malaysian SMEs in the rubber products sector to enable Rubber Products (A5) them to compete in a competitive environment • Diversifi cation of Secondary Income • Establish agro-based entrepreneurs among LTKN tobacco planters and ex-tobacco planters by conducting training and attachment programmes to increase their income • SME Transfer of Technology Seminar • Encourage the commercialisation of MPOB’s MPOB Conjunction with MICCOS 2011 technology • Conference on New Business • Encourage the commercialisation of MPOB’s MPOB Opportunities in Oleo Chemicals, technology and investments opportunities in oleo Biomass and Nutraceuticals chemicals, biomass sector and nutraceuticals Programme • Kursus Pembangunan Operator • Provide knowledge and skills in management of MPOB Tapak Semaian Sawit palm oil nursery • Kursus Kemahiran Mengred Buah • Increase palm oil extraction rate by improving MPOB Sawit quality of fruits received by mills towards increasing plantations and small holders income • Diploma in Palm Oil Milling • Contribute to human resource development MPOB Technology (DIPOM) especially in management and milling technology in the oil palm industry
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Ministry of Plantation Industries and Commodities (MPIC) A) Enhancing Viability of SMEs across All Sectors
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • Transfer of Technology • Add value to MPOBs technologies and services MPOB via commercialisation • Intensive Diploma in Palm Oil • Expose candidates to various technologies in MPOB Plantation Management Technology palm oil plantation management. Other subjects (IDIOMPT) include labour legislation, fi nance, engineering and processing
B) Promoting Bumiputera Participation in SME Sector
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • Bumiputera Marketing Expansion • Create opportunities for Bumiputera SMEs MTIB and Exploration Programme to compete in the domestic and international markets
Ministry of Plantation Industries and Commodities (MPIC)
Contact: No 15, 6-13th Floor, Lot 2G4 , Precint 2 Tel: 603-8880 3300 www.kppk.gov.my Pusat Pentadbiran Kerajaan Persekutuan Fax: 603-8880 3482 www.smeinfo.com.my 62654 PUTRAJAYA
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Ministry of Domestic Trade, Co-operatives and Consumerism (MDTCC) A) Enhancing Viability of SMEs across All Sectors
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • Taste of Malaysia • Promote and market SME products to MDTCC In hypermarkets abroad collaboration with: Hypermarket / Departmental Stores / Supermarket • Produk Malaysia, Citarasa Kita • Promote and market SME products to local and MDTCC In foreign hypermarkets in Malaysia collaboration with: Hypermarket / Departmental Stores/ Supermarket • Franchise Development Programme • Develop competent and competitive franchisor PNS
• Business Matching Programme • Assist SME to access and list their products in the MDTCC In local and foreign hypermarkets in Malaysia collaboration with: Hypermarket / Departmental Stores / Supermarket • Seminar on Intellectual Property • Promote IP awareness in protecting their MyIPO Intellectual Property Right
Strategic Thrust: Enhancing Access to Financing
Implementing Major Programmes Programme Objectives Agency • TUKAR • To modernise family’s sundry shop Local and Foreign Hypermarkets • PAKAR • To house various types of products under one FAMA, JKT, roof. To introduce caravan as a mode of doing PBT business
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Ministry of Domestic Trade, Co-operatives and Consumerism (MDTCC) A) Enhancing Viability of SMEs across All Sectors
Strategic Thrust: Enhancing Access to Financing
Implementing Major Programmes Programme Objectives Agency • Automotive Workshop Modernisation • To modernise automotive workshop industry KPKT, Federation of Automobile Workshop Owners Association of Malaysia (FAWOAM), AAM, Persatuan Pengusaha Industri Bengkel Malaysia (PPIBM), Malaysian Association of Tyre Retreaders and Dealers Society (MATRDS), PROTON, TOYOTA, NAZA
B) Promoting Bumiputera Participation in SME Sector
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • Graduate Frachise Programme (PFS) • Develop confi dent and competitive Bumiputera PNS entrepreneurs in franchise business among graduates
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Ministry of Domestic Trade, Co-operatives and Consumerism (MDTCC) B) Promoting Bumiputera Participation in SME Sector
Strategic Thrust: Enhancing Access to Financing
Implementing Major Programmes Programme Objectives Agency • PNS Franchise Financing Scheme • Develop and promote Middle-Level Bumiputera PNS Entrepreneurs (MLBE) in franchise businesses as well as provide fi nancial assistance for purpose of business expansion and new start-up franchise companies • PNS Pre-Franchise / Franchisor • Assist new franchisors by providing fi nancial PNS Financing Scheme assistance to potential franchisors and master franchisees
C) Promoting Development of SMEs in K-based Industries
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • IP-empowering SMEs-South Region • Assist the SME in registering their Intellectual MyIPO and North Region Property Rights
Ministry of Domestic Trade, Co-operatives and Consumerism (MDTCC)
Contact: No. 13, Persiaran Perdana, Precint 2 Tel: 603-8882 5500 www.kpdnkk.gov.my Pusat Pentadbiran Kerajaan Persekutuan Fax: 603-8882 5762 www.smeinfo.com.my 62623 PUTRAJAYA
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Ministry of Energy, Green Technology and Water (MEGTW) A) Promoting Development of SMEs in K-based Industries
Strategic Thrust: Enhancing Access to Financing
Implementing Major Programmes Programme Objectives Agency • Green Technology Financing • Promote green technology industry which aims to MEGTW in Scheme (GTFS) achieve a sustainable environment collaboration with: BNM, CGC, MGTC
Ministry of Energy, Green Technology and Water (MEGTW)
Contact: Block E4/5, Parcel E Tel: 603-8883 6200 www.kettha.gov.my Pusat Pentadbiran Kerajaan Persekutuan Fax: 603-8889 3712 www.smeinfo.com.my 62668 PUTRAJAYA
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Ministry of Finance (MOF) A) Enhancing Viability of SMEs across All Sectors
Strategic Thrust: Strengthening Enabling Infrastructure
Implementing Major Programmes Programme Objectives Agency • Pembangunan Dataran Usahawan • Provide a complete business infrastructure in Perbadanan Jalan Sultan Badlishah major cities for entrepreneurs Kemajuan Ekonomi Negeri Kedah • Program Pembangunan Usahawan • Train new entrepreneurs in high technology Perbadanan dan Vendor Berteknologi Tinggi di industries Kemajuan Kulim Hi-Tech Park Ekonomi Negeri Kedah • Cottage Retail shop • Provide business premises in cottage area UDA Holdings Berhad
Strategic Thrust: Enhancing Access to Financing
Implementing Major Programmes Programme Objectives Agency • Malaysian Kitchen Financing Facility • Provide fi nancing to Malaysian entrepreneurs to EXIM Bank set up or expand existing Malaysian restaurants overseas • Tourism Infrastructure Fund • Support the Government’s efforts to develop and BPMB promote tourism industry • Initiative Financing Scheme • Reduce poverty rate in Malaysia by providing AIM fi nancing to poor households which will enable them to undertake viable economic activity hence upgrading their household income • Maritime Fund • Provide fi nancial assistance to existing and new BPMB companies involved in shipping, shipyard and marine related activities • Ar-Rahnu Micro Programme • Provide an easy access micro credit facility to YPEIM community especially to lower income group as business capital for various productivity activities • Provide access to fi nancing through mortgage transaction based on Syarak rule • Tourism Special Fund • Providing access to fi nancing for tourism sector SME Bank
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Ministry of Finance (MOF) B) Promoting Bumiputera Participation in SME Sector
Strategic Thrust: Strengthening Enabling Infrastructure
Implementing Major Programmes Programme Objectives Agency • Development project - Medan Ikan • Provide premises equipped with comfortable and Perbadanan Bakar, Kg. Siti Mani Kota Bharu organised public facility and amenities for seafood Kemajuan based entrepreneur Iktisad Negeri Kelantan • Halal Product Development Project • Provide manufacturing premises equipped Perbadanan with machineries and equipment for halal food Kemajuan production Iktisad Negeri Kelantan • Automotive Centre Development • Provide business premises and workshops Perbadanan Project in Pengkalan Chepa equipped with modern equipment for Bumiputera Kemajuan entrepreneurs in automotive industry Iktisad Negeri Kelantan • Gerai Tok Bali setup at Pasir Puteh, • Provide business area and premises to Perbadanan Kelantan entrepreneurs in fi sh based industry Kemajuan Iktisad Negeri Kelantan • Pembangunan sistem rangkaian, • Development of supply chain for halal industry Perbadanan formulasi konsep yang kreatif dan Kemajuan pengurusan makanan ke arah Ekonomi menjadikan industri makanan halal Negeri Perak yang strategik
C) Promoting Development of SMEs in K-based Industries
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • Entrepreneur “Scale-Up” Coaching • To initiate “Entrepreneur Scale-Up” (ESP) training Cradle Fund Programme for entrepreneurs who can grow their business Sdn Bhd from small to medium or large under Budget 2011 • Cradle Investment Programme • Provide fi nancial assistance to budding Cradle Fund entrepreneurs to develop their ideas into prototype Sdn Bhd or proof of concept • Improve commercialisation scenario for technology ideas to build a stronger innovation ecosystem
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Ministry of Finance (MOF) C) Promoting Development of SMEs in K-based Industries
Strategic Thrust: Enhancing Access to Financing
Implementing Major Programmes Programme Objectives Agency • ICT, Biotechnology and Technology • Provide syariah-based fi nancing facilities which is Malaysian Development Project Financing innovative and fl exible for local companies in ICT, Debt biotechnology and technology sectors Ventures, MDeC, Biotech Corp, MAVCAP, KMP, Cradle Fund Sdn Bhd • Non-ICT Fund • Provide fi nancing for start-up and expansion MTDC projects in life science and biotechnology, green technology, waste-to-wealth technology and high precision manufacturing • Creating High Net Worth Angels • To create a larger pool of private sector Cradle Fund Investors (CHANGE) Programme individuals, angels investors and private Sdn Bhd investments as mandated by MOF • Dana Modal Teroka MAVCAP II • Provide venture capital fi nancing for technology MAVCAP and ICT companies
Ministry of Finance (MOF)
Contact: Kompleks Kementerian Kewangan Tel: 603-8882 3000 www.treasury.gov.my No. 5 Persiaran Perdana Fax: 603-8882 3893/94 www.smeinfo.com.my Pusat Pentadbiran Kerajaan Persekutuan 62592 PUTRAJAYA
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Ministry of Human Resources (MOHR) A) Enhancing Viability of SMEs across All Sectors
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • Master Trainer • Produce experts in training PSMB • Training Cum Production (TCP) / • Create a smart collaboration between the training JTM Teaching Factory institutes expertise and the SME by producing a small batch production • Maximise the usage of machines in all training institutes • Brainstorming on Core • Identify the training needs for selected industries PSMB Competencies for Industries • Short term and part time courses • Upgrade and enhance the industrial workers JTM multitasking capabilities • Enable industrial workers to gain training despite their full time engagement at work
B) Promoting Development of SMEs in K-based Industries
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • National Dual Training System • Train 2,400 school dropout students in 2011 JPK (NDTS) • SME Outreach Programme • Inculcate training culture in SMEs and establish JTM close linkages with private organisations and academic institutions • Training: • Equip workers with knowledge, skill upgrading, PSMB i. Retraining and Skills Upgrading capabilities, technical know-how and best ii. SMETAP Programme practices to be resilient and competitive SMEs • SME Training Needs Analysis • Assist SMEs in producing annual training plans PSMB Consultancy Scheme • Free TNA Programme • Equip Human Resource Offi cers with information PSMB on how to conduct training needs analysis for their organisation
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Ministry of Human Resources (MOHR) B) Promoting Development of SMEs in K-based Industries
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • Train-the-Trainer • Enhance the quality of trainers for SMEs PSMB • Evaluation-on-Effectiveness of • Equip trainers and human resources offi cers with PSMB Training the knowledge on how to conduct evaluation on training programme • Training Needs Analysis Study • Identify and address training needs based on PSMB specifi c sector
Ministry of Human Resources (MOHR)
Contact: Level 6-9, Block D3, Parcel D Tel: 603-8886 5000 www.mohr.gov.my Pusat Pentadbiran Kerajaan Persekutuan Fax: 603-8889 2381 www.smeinfo.com.my 62530 PUTRAJAYA
National SME Development Council SME ANNUAL REPORT 2010/11
76225 SME AR 2010n11.indd 133 11/11/11 2:57 PM APPENDIX 2 List of SME Development Programmes in 2011 134
Ministry of Housing and Local Government (MHLG) A) Enhancing Viability of SMEs across All Sectors
Strategic Thrust: Strengthening Enabling Infrastructure
Implementing Major Programmes Programme Objectives Agency • Landscape Industrial Village and • Strengthen and coordinate the development of Jabatan Exposition (LIVE) landscape industry through suitable infrastructure Landskap facilities Negara • Establish a garden centre for activities related to technology, design and plantation material for landscaping
Ministry of Housing and Local Government (MHLG)
Contact: Level 1-38, No 51, Persiaran Perdana, Precint 4 Tel: 603-8891 5000 www.kpkt.gov.my Pusat Pentadbiran Kerajaan Persekutuan Fax: 603-8891 3182 www.smeinfo.com.my 62100 PUTRAJAYA
National SME Development Council SME ANNUAL REPORT 2010/11
76225 SME AR 2010n11.indd 134 11/11/11 6:19 PM APPENDIX 2 List of SME Development Programmes in 2011 135
Ministry of Tourism (MOTOUR) A) Enhancing Viability of SMEs across All Sectors
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • Seminar Kesedaran Keselamatan • Increase awareness on safety and security for MOTOUR Premis Pelancongan budget hotel operations • Tourism Training Programme for • Provide training programme for budget hotel MOTOUR Budget Hotel Operators operators • Homestay Entrepreneur Training • Instill entrepreneurship among homestay’s MOTOUR operators
Ministry of Tourism (MOTOUR)
Contact: No. 2, Tower 1, Jalan P5/6, Precint 5 Tel: 603-8891 7000 www.motour.gov.my Pusat Pentadbiran Kerajaan Persekutuan Fax: 603-8891 7100 www.smeinfo.com.my 62200 PUTRAJAYA
National SME Development Council SME ANNUAL REPORT 2010/11
76225 SME AR 2010n11.indd 135 11/10/11 2:26 PM APPENDIX 2 List of SME Development Programmes in 2011 136
Ministry of Science, Technology and Innovation (MOSTI) A) Enhancing Viability of SMEs across All Sectors
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • AgroBio Business Chain Programme • To coordinate the agriculture and manufacturing TPM, Biotech industry Corp., MOA, • To increase the agricultural product value FAMA, i. Spearhead the growth for Agriculture Biotech MARDI, SME industry Corp. Malaysia ii. Optimising the involvement of Bumiputera in Agriculture Biotech industry
B) Promoting Bumiputera Participation in SME Sector
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • Traditional Medicines/ Supplement • To assist backyard traditional medicine/ MOSTI in Industry Development Programme supplement producer to become commercial collaboration entrepreneurs with: TPM, i. Catalysing the traditional medicine/ Biotech supplements Industry (e.g Jamu) Corp.,SME ii. Bringing traditional medicine/supplements into Corp. mainstream industry Malaysia MARA • Biopreneur Development Programme • To produce Biotech based entrepreneur TPM, MOA, • To increase the number of Bumiputera FAMA, entrepreneur in Biotech industry MARDI, Biotech Corp, SME Corp. Malaysia • Micropreneur Development • To assist the needy e.g. single mother, OKU to TPM, Biotech Programme venture in entrepreneurship related sector Corp.
National SME Development Council SME ANNUAL REPORT 2010/11
76225 SME AR 2010n11.indd 136 11/10/11 2:26 PM APPENDIX 2 List of SME Development Programmes in 2011 137
Ministry of Science, Technology and Innovation (MOSTI) C) Promoting Development of SMEs in K-based Industries
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency •a Dan e-Content • Create quality content products for local and MOSTI global markets by local companies and develop resilient and competitive content industry • Biopreneur Clinic Programme • To produce Biotech based Entrepreneur TPM, Biotech, • To enhanced the knowledge and MOA, FAMA, entrepreneurship skill of Bumiputera entrepreneur SME Corp. in Biotech industry Malaysia, i. Spearhead the growth for Biotech industry Biotech Corp. ii. Optimising the involvement of Bumiputera in Biotech industry • Pre-Commercialisation Fund • Undertake the development of new or cutting MOSTI edge technologies and stimulate the growth and innovation of Malaysian technology- based enterprises by increasing their R&D and commercialisation • Commercialisation of R&D Fund • Leverage on Science, Technology and Innovation MTDC (CRDF) (STI) for national development and wealth creation via commercialisation of products and process • Technology Acquisition Fund (TAF) • Promote utilisation of foreign technology for the MTDC manufacturing and physical development of existing and new products and processes • To increase wealth creation and technology content of Malaysian companies whilst enhancing their global competitiveness
Strategic Thrust: Strengthening Enabling Infrastructure
Implementing Major Programmes Programme Objectives Agency • Incubation & Technopreneur • Provide infrastructure (business premises) & TPM Development support services (technical & business skills) to entrepreneurs
Ministry of Science, Technology and Innovation (MOSTI)
Contact: Level 1-7, Block C4 &C5, Complex C Tel: 603-8885 8000 www.mosti.gov.my Pusat Pentadbiran Kerajaan Persekutuan Fax: 603-8888 9070 www.smeinfo.com.my 62662 PUTRAJAYA
National SME Development Council SME ANNUAL REPORT 2010/11
76225 SME AR 2010n11.indd 137 11/10/11 2:26 PM APPENDIX 2 List of SME Development Programmes in 2011 138
Ministry of Rural and Regional Development (MRRD) A) Promoting Bumiputera Participation in SME Sector
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • Additional Economic Activities • Enable smallholders families to obtain an average RISDA family income of at least RM2,000 per month • Entrepreneur Development • Obtain 1,000 entrepreneurs among smallholders RISDA in 2011
Strategic Thrust: Enhancing Access to Financing
Implementing Major Programmes Programme Objectives Agency • Technopreneur Bumiputera Fund • Enhancing, strengthening and upgrading potential MARA Bumiputera technopreneurs to a higher level through “Technology Smart Partnership” • Rural Economy Funding Scheme • Provide fi nancial assistance to rural entrepreneurs SME Bank, (SPED) in manufacturing services, agriculture and rural Bank Rakyat tourism sectors. It offers 3 types of fi nancing: i. Start-up fi nancing ii. Working Capital and Business Expansion iii. Rehabilitation Financing • MARA Business Financing Scheme • Provide loan assistance to Bumiputera MARA entrepreneurs to increase working capital or business start-ups
Ministry of Rural and Regional Development (MRRD)
Contact: Block D9, Complex D Tel: 603-8886 3500 www.rurallink.gov.my Pusat Pentadbiran Kerajaan Persekutuan Fax: 603-8889 2104 www.smeinfo.com.my 62606 PUTRAJAYA
National SME Development Council SME ANNUAL REPORT 2010/11
76225 SME AR 2010n11.indd 138 11/10/11 2:26 PM APPENDIX 2 List of SME Development Programmes in 2011 139
Ministry of International Trade and Industry (MITI) A) Enhancing Viability of SMEs across All Sectors
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • Halal Manufacturing Success Stories • To provide support and conducive business HDC environment for selected SMEs to expand business and increase sales • Go Halal! • To establish Halal certifi ed ready SMEs before HDC in compliance audit by JAKIM / MAIN / JAIN collaboration: INSKEN • Program Pembangunan Kandungan • To enhance knowledge content of the fi rm and to MPC Pengetahuan bagi Firma (myKEII) be more competitive • Women Exporters Development • Export assistance programmes designed for small MATRADE Programme (WEDP) and medium sized women owned businesses. These programmes help SMEs to develop the necessary skills and knowledge to penetrate and further expand their export market • Marketing Development Grant (MDG) • Assistance for SMEs to undertake activities for MATRADE for SME development of export market • Exports Training Programme • Enhance knowledge of SMEs in export-related MATRADE areas such as export regulations, market information, international standards, branding, packaging and trade fi nancing • MATRADE Briefi ng and Consultation • Cultivate export culture among SMEs and MATRADE Session encourage those particularly outside Klang Valley to utilize the services offered by MATRADE • Industrial Linkage Programme • Develop linkages between SMEs, MNCs, GLCs as SME Corp. well as large companies Malaysia • SME Innovation Showcase • Provide a platform for SMEs to display products SME Corp. and services available for outsourcing activities Malaysia • Halal Champion • Increase capability of potential SME to go global HDC and improve trade balance by enhancing SMEs export • Skills Upgrading Programme • Enhance the capacities and capabilities to SME Corp. employees of SMEs in the technical and Malaysia managerial levels such as fi nancial, quality management as well as business management • SME Expert Advisory Panel (SEAP) • Strengthen technical advisory services to SMEs SME Corp. through on-site assistance and encourage Malaysia transfer of technology know-how and experience from industry experts to SMEs
National SME Development Council SME ANNUAL REPORT 2010/11
76225 SME AR 2010n11.indd 139 11/10/11 2:26 PM APPENDIX 2 List of SME Development Programmes in 2011 140
Ministry of International Trade and Industry (MITI) A) Enhancing Viability of SMEs across All Sectors
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • Enterprise 50 Award Programme • Recognise the achievements of Malaysia’s SME Corp. enterprising homegrown companies, which are Malaysia well positioned for the future • Capacity Development Programme • Enhance and develop capacity of SMEs human MPC resource in productivity and quality subject matters • SME-Brand Development • Create awareness on branding among SMEs SME Corp. Programme Malaysia • SME-University Internship • Facilitate and upgrade SMEs’ knowledge towards SME Corp. Programme improving the business processes, productivity Malaysia and fi nancial performance while the students will be further exposed to entrepreneurship • MAJAICO A-1 • Upscale the local automotive parts and SME Corp. components manufacturer towards higher Malaysia value added activities and enhance capacity building through the implementation of the Lean Production System (LPS) • SIFE World Cup 2011 • To promote social entrepreneurship, creativity SME Corp. and soft-skills, international networking among Malaysia IPT students, academicians and business communities • Capacity Building and Industry • To equip more Halal industry players (SMEs) with HDC Linkage value added knowledge and support imperative for the growth of Halal industry in Malaysia
Strategic Thrust: Enhancing Access to Financing
Implementing Major Programmes Programme Objectives Agency • Soft Loan for SMEs (SLSME) • Assist existing as well as new start-up companies SME Corp. in project, fi xed assets and working capital Malaysia in fi n a n c i n g collaboration: MIDF • Soft Loan Scheme for Automation • Encourage industries to modernise and automate MIDF and Modernisation (SLSAM) their manufacturing processes and upgrade production capacity and capabilities • Soft Loan Scheme for Service Sector • To assist companies and enterprises in the MIDF (SLSSS) services sectors to raise their capabilities and capacities
National SME Development Council SME ANNUAL REPORT 2010/11
76225 SME AR 2010n11.indd 140 11/10/11 2:26 PM APPENDIX 2 List of SME Development Programmes in 2011 141
Ministry of International Trade and Industry (MITI) A) Enhancing Viability of SMEs across All Sectors
Strategic Thrust: Enhancing Access to Financing
Implementing Major Programmes Programme Objectives Agency • Business Accelerator Programme • An integrated programme to develop and nurture SME Corp. (BAP) dynamic, competitive and resilient SMEs through Malaysia SCORE, capacity building, advisory and technical support as well as fi nancial support • Enrichment and Enhancement • An integrated programme to develop and SME Corp. Programme (E2) nurture dynamic, competitive and resilient micro Malaysia enterprise through M-CORE, capacity building, advisory and technical support as well as fi nancial support • Bridging Financing (BF) • Short-term fi nancing to mitigate the impact of long SME Corp. drawn process due to condition precedence Malaysia
B) Promoting Bumiputera Participation in SME Sector
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • Vendor Development Programme CAD / CAM Technical Training MITI in i) Technical Training in Oil & Gas collaboration: Industry TPM & SIRIM ii) Technical Training in Automotive Industry iii) Training on Quality Compliance • Undergraduate Entrepreneurship • To promote and create awareness among MITI Program (PKS) university students on entrepreneurship • Product Quality Enhancement • To further develop the production of products MITI in Programme (Groom Big) through strict compliance to standards collaboration: requirement SIRIM • Strategic Partnership with GLCs / • To create strategic partnership with GLCs (e.g. MITI Bumiputera Business Chambers / Kontena Nasional) to develop Bumiputera Industries entrepreneurs • Domestic Trade Fairs • To create awareness and demand for local MITI products/services • International Trade Fairs/Specialised • To promote local products and services for the MITI Marketing Mission / Solo Exhibition international markets
National SME Development Council SME ANNUAL REPORT 2010/11
76225 SME AR 2010n11.indd 141 11/10/11 2:26 PM APPENDIX 2 List of SME Development Programmes in 2011 142
Ministry of International Trade and Industry (MITI) B) Promoting Bumiputera Participation in SME Sector
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • Entrepreneur Advertising Programme • To assist entrepreneurs in promoting their MITI products and services via media channels with a minimum cost • One District One Industry (SDSI) • To market and promote SDSI products and MITI services to domestic and international market • Program Promosi Kecemerlangan • To assist the potential Bumiputera SMEs to MITI Organisasi (TQM) venture into the international market • Bumiputera Enterprise Enhancement • Develop potential Bumiputera SMEs in all states. SME Corp. Programme (BEEP) The programme provides selected Bumiputera Malaysia SMEs comprehensive assistance package, comprising of fi nancial assistance and advisory services • Bumiputera Exporters Development • Export assistance programmes design for small MATRADE Programme (BEDP) and medium sized Bumiputera companies. These SMEs Pogrammes help SMEs to develop the necessary skills and knowledge to penetrate and further expand their export markets (Since 2004)
Strategic Thrust: Strengthening Enabling Infrastructure
Implementing Major Programmes Programme Objectives Agency • Pusat Pengumpulan dan Pemasaran • To collect and market products and services by MITI Produk (4PU) / Trading House Bumiputera entrepreneurs
Strategic Thrust: Enhancing Access to Financing
Implementing Major Programmes Programme Objectives Agency • Program Pinjaman Usahawan PKS • Financial assistance to Bumiputera entrepreneurs SME Bank
Ministry of International Trade and Industry (MITI)
Contact: Block 10, Kompleks Pejabat Kerajaan Tel: 603-6203 3022 www.miti.gov.my Jalan Duta 50622 KUALA LUMPUR Fax: 603-6203 2337 www.smeinfo.com.my
National SME Development Council SME ANNUAL REPORT 2010/11
76225 SME AR 2010n11.indd 142 11/10/11 2:26 PM APPENDIX 2 List of SME Development Programmes in 2011 143
Ministry of Information Communications and Culture (KPKK) A) Enhancing Viability of SMEs across All Sectors
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • Research and Development • Develop and produce market-oriented products Malaysian that are competitive for domestic and international Handicraft market Development Corporation • Craft Entrepreneur Development • Develop and increase the number and capacity Malaysian of resilient and viable entrepreneurs in the craft Handicraft industry through: Development i. One District One Industry Project Corporation ii. Entrepreneur Upgrading • Craft Skilled Development • Produce knowledgeable, highly skillful, creative Malaysian and innovative graduates in the fi eld of Batik craft, Handicraft weaving, ceramic, woodcraft, metal craft and Development rattan to fulfi ll the skilled manpower demand of the Corporation craft industry • Craft Preservation and Restoration • Restore and preserve the craft heritage Malaysian Handicraft Development Corporation • Craft Marketing • Increase the craft sales of entrepreneurs in Malaysian domestic and international markets Handicraft Development Corporation
Strategic Thrust: Enhancing Access to Financing
Implementing Major Programmes Programme Objectives Agency • Creative Industry Loan • Provide fi nancial assistance to promote the BSN, MOF development of creative industry as well as enhance local creative content in the local and international markets • Film Art and Multimedia Development • Provide fi nancing for production of quality short FINAS Fund fi lms / documentary / animation
National SME Development Council SME ANNUAL REPORT 2010/11
76225 SME AR 2010n11.indd 143 11/10/11 2:26 PM APPENDIX 2 List of SME Development Programmes in 2011 144
Ministry of Information Communications and Culture (KPKK) B) Promoting Development of SMEs in K-based Industries
Strategic Thrust: Enhancing Access to Financing
Implementing Major Programmes Programme Objectives Agency • Network Content Development Grant • Facilitate and encourage Malaysian’s involvement KPKK in the creation, production and distribution of highly creative, original and marketable network content for domestic and international markets
Ministry of Information Communications and Culture (KPKK)
Contact: Kompleks Sultan Abdul Samad, Jalan Raja Tel : 603-2612 7600 www.kpkk.gov.my 50610 KUALA LUMPUR Fax : 603-2693 5114 www.smeinfo.com.my
National SME Development Council SME ANNUAL REPORT 2010/11
76225 SME AR 2010n11.indd 144 11/10/11 2:26 PM APPENDIX 2 List of SME Development Programmes in 2011 145
Ministry of Youth and Sports (MOYS) A) Enhancing Viability of SMEs across All Sectors
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • Basic Entrepreneurship Course • Provide exposure to young entrepreneurs on basic MOYS entrepreneurial skills to equip their knowledge and capability to face business challenges • Smart Partnership Youth • Provide business space and opportunities for SIRIM Entrepreneur youth to get exposure and understand the concept of entrepreneurship • Course on Design & Labelling • Provide knowledge to young entrepreneurs on SIRIM food packaging and labelling technology • Technical Course for Youth on • Provide knowledge to young entrepreneurs on MOYS Agriculture technical agricultural-based business know-how
Ministry of Youth and Sports (MOYS)
Contact: KBS Tower, Tel : 603-8871 3333 www.kbs.gov.my No. 27 Persiaran Perdana, Precint 4, Fax : 603-8888 8770 www.smeinfo.com.my 62570 PUTRAJAYA
National SME Development Council SME ANNUAL REPORT 2010/11
76225 SME AR 2010n11.indd 145 11/10/11 2:26 PM APPENDIX 2 List of SME Development Programmes in 2011 146
Ministry of Women, Family and Community Development (MWFCD) A) Enhancing Viability of SMEs across All Sectors
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • Inkubator Keusahawanan Wanita • To eradicate poverty and improve the quality of life JPW (I-KeuNITA) for women • Program Pembangunan Usahawan • Motivate women’s participation in business JPW Wanita through talks and sharing of experience • Geran Teman 1Azam • Special Grants for participants of skills training JPW programmes conducted by JPW for them to start- up or expand their business • Inkubator Kemahiran Ibu Tunggal • Eradicate poverty and increase the quality life of JPW (I-KIT) single mothers
Ministry of Women, Family and Community Development (MWFCD)
Contact: Level 1-6, Kompleks Pejabat Kerajaan Bukit Perdana Tel: 603-2693 0095 www.kpwkm.gov.my Jalan Dato’ Onn, 50515 KUALA LUMPUR Fax: 603-2693 4982 www.smeinfo.com.my
National SME Development Council SME ANNUAL REPORT 2010/11
76225 SME AR 2010n11.indd 146 11/10/11 2:26 PM APPENDIX 2 List of SME Development Programmes in 2011 147
Ministry of Industrial Development Sabah (MID Sabah) A) Enhancing Viability of SMEs across All Sector
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • Specialised Food Processing Course • To upgrade and increase skills and expertise of Jabatan entrepreneurs in processing food products from Pembangunan local resources Perindustrian dan Penyelidikan • Kursus Asas Kontraktor • Develop contractor’s self-confi dence Kementerian Pembangunan Sumber dan Kemajuan Teknologi Maklumat (KPSKTM)
Strategic Thrust: Strengthening Enabling Infrastructure
Implementing Major Programmes Programme Objectives Agency • Pembangunan Usahawan Desa • To increase income of rural entrepreneurs Ministry of Rural Development Sabah • Shophouses • To develop shophouses for rural entrepreneurs KPP
Strategic Thrust: Enhancing Access to Financing
Implementing Major Programmes Programme Objectives Agency • Financing Scheme for technical • Assist technical school leavers and workshop SEDCO school leavers & workshop workers workers to purchase machine and equipment to (Skim Lepasan Teknik dan Pekerja start new business Bengkel)
National SME Development Council SME ANNUAL REPORT 2010/11
76225 SME AR 2010n11.indd 147 11/11/11 3:20 PM APPENDIX 2 List of SME Development Programmes in 2011 148
Ministry of Industrial Development Sabah (MID Sabah) B) Promoting Bumiputera Participation in SME Sector
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • Small Projects under Social • Provide small projects to social aid recipients Jabatan Development Programme and other target groups to develop their Perkhidmatan entrepreneurship skills and enhance their Am Kota standard of living Kinabalu • Entrepreneur Development Scheme • Develop progressive and resilient Bumiputera UiTM SME Entrepreneur • Entrepreneurship for Single Mother • Provide training for single mothers to become Kementerian entrepreneurs and expand their business Pembangunan Masyarakat dan Hal Ehwal Pengguna / Jabatan Hal Ehwal Wanita Sabah • Program mempelbagai dan • Assist the SMEs in purchasing machines and Kementerian menambah pendapatan petani, new equipment to increase product quality and Pertanian penternak dan nelayan (Program productivity dan Industri 2M2P) Makanan Sabah • Program Pengembangan Industri • To provide training for SMEs in the area of Kementerian Hiliran processing, developing, enhance productivity and Pertanian the quality of products dan Industri Makanan Sabah • Program Pembangunan Produk dan • Enhance the product quality of SMEs MID Pembungkusan • Program 1 Azam (Azam Tani) • Assist SMEs in business start-up and buying Kementerian machines Pertanian dan Industri Makanan Sabah
National SME Development Council SME ANNUAL REPORT 2010/11 APPENDIX 2 List of SME Development Programmes in 2011 149
Ministry of Industrial Development Sabah (MID Sabah) B) Promoting Bumiputera Participation in SME Sector
Strategic Thrust: Enhancing Access to Financing
Implementing Major Programmes Programme Objectives Agency • Pembangunan Industri Kecil • Increase the downstream fi shing industry Koperasi Perikanan (PIKP) Kemajuan Perikanan dan Nelayan Sabah • Skim Pembiayaan Usahawan • Provide fi nancing for Bumiputera companies to SEDCO Bumiputera Sabah (SPUBS) start-up and develop their business • Skim Pembiayaan Usahawan Wanita • Provide fi nancing facilities for women KPP/ SEDCO Sabah entrepreneurs to start-up or expand existing businesses
Ministry of Industrial Development Sabah (MID Sabah)
Contact: 9-11th Floor, Block C Tel: 6088-255055 www.sabah.gov.my/mid Wisma Tun Fuad Stephens, Karamunsing Fax: 6088-267727 www.smeinfo.com.my Locked Bag 2037 88622 Kota Kinabalu SABAH
National SME Development Council SME ANNUAL REPORT 2010/11
76225 SME AR 2010n11.indd 149 11/10/11 2:26 PM APPENDIX 2 List of SME Development Programmes in 2011 150
Ministry of Industrial Development Sarawak (MID Sarawak) A) Enhancing Viability of SMEs across All Sectors
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • Program Pembangunan Vendor • Provide training courses and seminar for SMEs PUSAKA Perabot
Strategic Thrust: Strengthening Enabling Infrastructure
Implementing Major Programmes Programme Objectives Agency • Industrial Estate Development • To develop industrial estate in Kota Samarahan, PUSAKA Tebedu, Demak Laut, Kota Samarahan Zon C, Lawas Light Industrial Areas, and Kapit
Strategic Thrust: Enhancing Access to Financing
Implementing Major Programmes Programme Objectives Agency • Kredit Bahan Mentah, Skim Dana • To create competitive Bumiputera entrepreneurs PUSAKA Pusingan dan Skim Penyimpanan in the furniture industry for global and domestic Stok market
B) Promoting Bumiputera Participation in SME Sector
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • Industri Asas Tani & Makanan • To improve the economy and develop a dynamic Jabatan industry entrepreneurs Pertanian Sarawak • Program Pembangunan Kenal pasti • Create and expand the business chain UPUB Usahawan development between entrepreneurs and consumers, distributors and marketing agents • Business Development Programme • MARDI Technology Test-bed System MARDI • Pameran, Ekspo, SDSI, Misi • To promote and market the products of SMEs in UPUB Perdagangan Domestik the Domestic Market • Pameran, Ekspo, SDSI, Misi • To promote and market the products of SMEs in MATRADE Perdagangan Antarabangsa the International Market
National SME Development Council SME ANNUAL REPORT 2010/11
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Ministry of Industrial Development Sarawak (MID Sarawak) B) Promoting Bumiputera Participation in SME Sector
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • Latihan Teknikal • To provide technical training to micro FRIM, Jabatan entrepreneurs in Veterinar i. Swifl et Farming ii. Tanaman Karas iii. Craft Industry iv. Fish Farming v. Cake and Pastry vi. Handphone Repairing
Strategic Thrust: Enhancing Access to Financing
Implementing Major Programmes Programme Objectives Agency • Small and Medium Industry • Provide fi nancing support for SMEs in MID Financing Scheme (SPIKS) manufacturing, services and ICT sectors
C) Promoting Development of SMEs in K-based Industries
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • Content Industry • Develop new entrepreneur in the content industry MOSTI / FINAS
Ministry of Industrial Development Sarawak (MID Sarawak)
Contact: 12th & 13th Floor, Wisma Sumber Alam Tel: 6082- 313 212 www.mid.sarawak.gov.my Jalan Stadium, Petra Jaya Fax: 6082-445 337 www.smeinfo.com.my 93500 Kuching SARAWAK
National SME Development Council SME ANNUAL REPORT 2010/11
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Bank Negara Malaysia (BNM) A) Enhancing Viability of SMEs across All Sectors
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • Outreach and Awareness • Enhance access to fi nancing by SMEs through BNM Programmes for SMEs and Micro outreach and awareness programmes Enterprises • Creation of Financing Help Desks at • Increase SMEs’ awareness on availability of BNM Business Chambers / Associations fi nancing avenues, requirements and processes via ‘Train-the-Trainers’
Strategic Thrust: Enhancing Access to Financing
Implementing Major Programmes Programme Objectives Agency • Fund for Small and Medium • Ensure eligible SMEs have access to fi nancing at BNM Industries 2 (FSMI2) a reasonable cost • Micro Enterprise Fund (MEF) • Provide continuous access to fi nancing for micro BNM enterprises
B) Promoting Bumiputera Participation in SME Sector
Strategic Thrust: Enhancing Access to Financing
Implementing Major Programmes Programme Objectives Agency • New Entrepreneur Fund 2 (NEF 2) • Promote the growth of Bumiputera SMEs by BNM ensuring that they have access to fi nancing at a reasonable cost
Bank Negara Malaysia (BNM)
Contact: Jalan Dato’ Onn, P.O Box 10922 Tel: 603-2698 8044 www.bnm.gov.my 50929 KUALA LUMPUR Fax: 603-2691 2990 www.smeinfo.com.my
National SME Development Council SME ANNUAL REPORT 2010/11
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Perbadanan Usahawan Nasional Berhad (PUNB) A) Promoting Bumiputera Participation in SME Sector
Strategic Thrust: Enhancing Access to Financing
Implementing Major Programmes Programme Objectives Agency • Skim PKS • Increase the number and quality of Bumiputera PUNB entrepreneurs in manufacturing and services sectors • PROSPER Property • Purchase retail premise at strategic locations PUNB • Pemborong PROSPER • Develop Bumiputera entrepreneurs in wholesale PUNB sectors that provide bulk purchase activities • PROSPER Runcit • Increase the quality of Bumiputera entrepreneurs PUNB in the distributive and retail sector • PROSPER Siswazah • Equip young Bumiputera graduates and certifi cate PUNB holders with skills and knowledge to venture into the retail and distributive sectors
Perbadanan Usahawan Nasional Berhad (PUNB)
Contact: Level 10, Block 1B, Plaza Sentral Tel: 603-2785 1515 www.punb.com.my Jalan Stesen 5, KL Sentral Fax: 603-2780 2100 www.smeinfo.com.my 50470 KUALA LUMPUR
National SME Development Council SME ANNUAL REPORT 2010/11
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Federal Land Development Authority (FELDA) A) Enhancing Viability of SMEs across All Sectors
Strategic Thrust: Building Capacity and Capability
Implementing Major Programmes Programme Objectives Agency • Tunas Mekar • Create new entrepreneurs among young FELDA graduates from the settlers’ families to improve and enhance the economic activity at the scheme and encourage second generation of FELDA to live at the scheme • Program Pembangunan Usahawan • Increase number of entrepreneur through various FELDA FELDA types of assistance such as provision of business premises, machine and equipment and advisory services, training to improve quality of product and market opportunities
Strategic Thrust: Enhancing Access to Financing
Implementing Major Programmes Programme Objectives Agency • Skim Insentif Usahawan Felda (SIUF) • Encourage settlers to start or expand existing FELDA business which contributes to increase household income. Interest free loans are given to purchase machines and equipment for businesses
Federal Land Development Authority (FELDA)
Contact: Wisma FELDA Tel : 603-2617 2617 www.felda.net.my Jalan Perumahan Gurney Fax : 603-2692 0087 www.smeinfo.com.my 54000 KUALA LUMPUR
National SME Development Council SME ANNUAL REPORT 2010/11
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List of Ministries and Related Agencies 159 Organisations / Associations / Institutions 174 Funds 174 Government Programmes 174 Government Documents 175 Other Terms 175
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Ministry of Agriculture and Agro-Based Industry
Related Agencies Acronym Contact Bank Pertanian Malaysia Berhad Agrobank Leboh Pasar Besar, Peti Surat 10815, 50726 Kuala Lumpur
Tel: 603-2731 1600 Fax: 603-2691 4908 www.agrobank.com.my Federal Agriculture Marketing FAMA Bangunan FAMA Point, Lot 17304 Jalan Persiaran 1 Authority Bandar Baru Selayang, 68100 Batu Caves, Selangor
Tel: 603-6126 2020 Fax: 603-6138 3650 / 5200 www.fama.gov.my Malaysian Agriculture Research and MARDI Peti Surat 12301, Pejabat Pos Besar 50774 Kuala Lumpur Development Institute Tel: 603-8943 7111 Fax: 603-8948 3664 www.mardi.gov.my Tabung Ekonomi Kumpulan Usaha TEKUN No. 2, Jalan 4/146, Metro Centre Bandar Tasik Selatan Niaga 57000 Kuala Lumpur
Tel: 603-9058 8550 Fax: 603-9059 5777 www.tekun.gov.my Muda Agriculture Development MADA Ampang Jajar, 05990, Alor Setar, Kedah Darul Aman Authority Tel: 604-7728 255 Fax: 604-7722 667 www.mada.gov.my Department of Fisheries DOF Wisma Tani, Level 1 - 6, Block Menara 4G2, Precint 4 Pusat Pentadbiran Kerajaan Persekutuan, 62628 Putrajaya
Tel: 603-8870 4000 Fax: 603-8889 2460 www.dof.gov.my Department of Veterinary Services DVS Wisma Tani, Block Podium, Lot 4G1, Precint 4 Pusat Pentadbiran Kerajaan Persekutuan, 62630 Putrajaya
Tel: 603-8870 2000 Fax: 603-8888 6021 www.jpvpk.gov.my
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Ministry of Agriculture and Agro-Based Industry
Related Agencies Acronym Contact Fisheries Development Authority of LKIM Level 3, Menara Olympia Malaysia Jalan Raja Chulan, Peti Surat 12630 50200 Kuala Lumpur
Tel: 603-2617 7000 Fax: 603-2070 9331 www.lkim.gov.my Lembaga Pertubuhan Peladang LPP Block C Utara Pusat Bandar Damansara, Bukit Damansara 50460 Kuala Lumpur
Tel: 603-2094 5222 Fax: 603-2095 4239 www.lpp.gov.my Malaysia Pineapple Industry Board MPIB Wisma Nanas, No. 5, Jalan Padi Mahsuri Bandar Baru UDA, 81200 Johor Bahru, Johor
Tel: 607-2361 211 Fax: 607-2365 694 www.mpib.gov.my
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Ministry of Plantation Industries and Commodities
Related Agencies Acronym Contact Malaysian Palm Oil Board MPOB No. 6, Persiaran Institusi, Bandar Baru Bangi 43000 Kajang, Selangor P.O. Box 10620, 50720 Kuala Lumpur
Tel: 603-8769 4400 Fax: 603-8925 9446 www.mpob.gov.my Malaysian Rubber Board MRB Level 17 & 18, Bangunan Getah Asli (Menara) 148 Jalan Ampang, 50450 Kuala Lumpur
Tel: 603-9206 2000 Fax: 603-2163 4492 www.lgm.gov.my Malaysian Timber Industry Board MTIB Tingkat 13-17, Menara PGRM, No. 8, Jalan Pudu Ulu, 56100 Cheras, Kuala Lumpur
Tel: 603-9282 2235 Fax: 603-9200 3769 www.mtib.gov.my National Kenaf and Tobacco Board LKTN Jalan Sultan Yahya Petra, 16150 Kubang Kerian Kota Bharu, Kelantan
Tel: 609-7652 933 Fax: 609-7642 248 www.lktn.gov.my Malaysian Cocoa Board MCB Level 5 & 6, Wisma SEDCO Peti Surat 211, 88999 Kota Kinabalu, Sabah
Tel: 6088-234 477 Fax: 6088-239 575 www.koko.gov.my Malaysian Pepper Board MPB Lot 1115, Jalan Utama, Tanah Putih P.O. Box 1653, 93916 Kuching, Sarawak
Tel: 6082-331 811 Fax: 6082-336 877 www.mpb.gov.my
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Ministry Domestic Trade, Co-operatives and Consumerism
Related Agencies Acronym Contact Suruhanjaya Koperasi Malaysia SKM Level 5-7, Block J, Pusat Bandar Damansara 50608, Kuala Lumpur
Tel: 603-2081 2400 Fax: 603-2093 5026 www.skm.gov.my Malaysian Franchise Association MFA 1st Floor Wisma Motor, 339 Jalan Tuanku Abdul Rahman 50100 Kuala Lumpur
Tel: 603-2697 1557 Fax: 603-2697 1559 www.mfa.org.my Perbadanan Nasional Berhad PNS Perbadanan Nasional Berhad Level 9B, Menara Dato’ Onn, PWTC, 45 Jalan Tun Ismail 50480 Kuala Lumpur
Tel: 603-2698 6670 Fax: 603- 2698 6617 www.pns.com.my
Intellectual Property Corporation of MyIPO Unit 1-7, Ground Floor, Menara UOA Bangsar, No. 5, Jalan Malaysia Bangsar Utama 1, 59000 Kuala Lumpur
Tel: 603-2299 8400 Fax: 603-2299 8989 www.myipo.gov.my
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Ministry of Finance
Related Agencies Acronym Contact Malaysia Venture Capital MAVCAP Level 10, Menara Bank Pembangunan Management Berhad 1016, Jalan Sultan Ismail 50250 Kuala Lumpur
Tel: 603-2050 3000 Fax: 603-2698 3800 www.mavcap.com Malaysia Debt Ventures Berhad MDV Level 5, Menara Bank Pembangunan 1016, Jalan Sultan Ismail, 50250 Kuala Lumpur
Tel: 603-2617 2888 Fax: 603-2697 8998 www.debtventures.com Export-Import Bank of Malaysia EXIM Bank Level 8, UBN Tower, No. 10 Berhad Jalan P. Ramlee, P.O. Box 13028, 50796 Kuala Lumpur
Tel: 603-2034 6666 Fax: 603-2034 6699 www.exim.com.my Amanah Ikhtiar Malaysia AIM No. 2 & 4, Jalan Medan Setia 2, Plaza Damansara, Bukit Damansara 50490 Kuala Lumpur
Tel: 603-2094 0797 Fax: 603-2095 1889 www.aim.gov.my Bank Kerjasama Rakyat Malaysia Bank Bangunan Bank Rakyat, Jalan Tangsi Berhad Rakyat Peti Surat 11024, 50732 Kuala Lumpur
Tel: 603-2612 9600 Fax: 603-2612 9655 www.bankrakyat.com.my Bank Pembangunan Malaysia Berhad BPMB Menara Bank Pembangunan Bandar Wawasan No.1016, Jalan Sultan Ismail, 50250 Kuala Lumpur
Tel: 603-2611 3888 Fax: 603-2698 5701 www.bpmb.com.my
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Ministry of Finance
Related Agencies Acronym Contact Bank Simpanan Nasional BSN Wisma BSN, 117, Jalan Ampang, 50450 Kuala Lumpur
Tel: 603-2162 3222 Fax: 603-2710 7252 www.bsn.com.my Cradle Fund Sdn Bhd CFSB Suite 4.8.1 Level 4, PNB Darby Park 10 Jalan Binjai, 50450 Kuala Lumpur
Tel: 603-2166 4730 Fax: 603-2166 4737 www.cradle.com.my Penang Development Corporation PDC No. 1 Pesiaran Mahsuri, Bandar Bayan Baru 11909 Bayan Lepas, Penang
Tel: 604-6340 111 Fax: 604-6432 405 www.pdc.gov.my Perbadanan Kemajuan Iktisad Negeri PKINK Level 4-11, Bangunan PKINK, Jalan Tengku Maharani Kelantan 15710 Kota Bharu, Kelantan
Tel: 609-7414 141 Fax: 609-7414 140 www.pkink.gov.my UDA Holdings Berhad UDA BB Plaza, Lot 111, Jalan Bukit Bintang 55100 Kuala Lumpur.
Tel: 603-2730 / 8500 Fax: 603-2713 8500 / 8555 www.uda.com.my Yayasan Pembangunan Ekonomi YaPEIM No. 52, Bangunan YPEIM, Jalan Kampung Attap Islam Malaysia Beg Berkunci 11012, 50732 Kuala Lumpur
Tel: 603-2273 3170 Fax: 603-2273 316 www.yapeim.net.my PROKHAS Sdn Bhd PROKHAS Level 12, Bangunan Setia 115, Lorong Dungun Bukit Damansara, 50490 Kuala Lumpur
Tel: 603-2096 5000 Fax: 603-2096 5090 www.prokhas.com.my
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Ministry of Human Resources
Related Agencies Acronym Contact Pembangunan Sumber Manusia PSMB Wisma PSMB, Jalan Beringin, Damansara Heights Berhad 50490 Kuala Lumpur
Tel: 603-2096 4800 Fax: 603-2096 4999 www.hrdf.com.my Department of Labour JTM Level 6, Block D4, Kompleks D, Pusat Pentadbiran Kerajaan Persekutuan, 62530 Putrajaya
Tel: 603-8886 5555 Fax: 603-8889 2417 [email protected] Jabatan Tenaga Kerja JTK Level 5, Block D3, Kompleks D Pusat Pentadbiran Kerajaan Persekutuan, 62530, Putrajaya
Tel: 603-8886 5000 Fax: 603-8889 2368 www.jtksm.mohr.gov.my Department of Skills Development DSD Level 7 & 8, Block D4, Kompleks D Pusat Pentadbiran Kerajaan Persekutuan, 62530, Putrajaya
Tel: 603-8886 5000 Fax: 603-8889 2423 www.dsd.gov.my
Ministry of Housing and Local Government
Related Agencies Acronym Contact Jabatan Landskap Negara JLN Level 7, Plaza Permata (IGB), Jalan Kampar off Jalan Tun Razak, 60400 Kuala Lumpur
Tel: 603-4047 0000 Fax: 603-4046 2416 [email protected] Jabatan Kerajaan Tempatan JKT Level 4, Block K, Pusat Bandar Damansara, 50782 Kuala Lumpur,
Tel: 603-2094 7033 Fax: 603-2094 9720 www.kpkt.gov.my
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Ministry of Science, Technology and Innovation
Related Agencies Acronym Contact MIMOS Berhad MIMOS Technology Park Malaysia, 57000 Kuala Lumpur
Tel: 603-8995 5000 Fax: 603-8996 2755 www.mimos.my Technology Park Malaysia TPM Level 5, Enterprise 4, Technology Park Malaysia Corporation Sdn Bhd 57000 Bukit Jalil, Kuala Lumpur
Tel: 603-8998 2020 Fax: 603-8998 2110 www.tpm.com.my Standards and Industrial Research SIRIM No. 1, Persiaran Dato’ Menteri, Seksyen 2 Institute of Malaysia Berhad Berhad Peti Surat 7035, 40911 Shah Alam, Selangor
Tel: 603-5544 6000 Fax: 603-5510 8095 www.sirim.my Multimedia Development Corporation MDeC MSC Malaysia Headquarters, Persiaran APEC 63000 Cyberjaya, Selangor
Tel: 1-800-88-8338 Fax: 603-8315 3115 www.mdec.my Malaysian Technology Development MTDC Level 8 - 9, Menara Yayasan Tun Razak Corporation Jalan Bukit Bintang, 55100 Kuala Lumpur
Tel: 603-2161 2000 Fax: 603-2163 7542 www.mtdc.com.my Malaysian Biotechnology Corporation Biotech Corporate Offi ce, Level 23, Menara Atlan Corp. 161B Jalan Ampang, 50450 Kuala Lumpur
Tel: 603-2116 5588 Fax: 603-2116 5411 www.biotechcorp.com.my Malaysia Industry-Government Group MIGHT Block 3517, Jalan Teknokrat 5, 63000 Cyberjaya, Selangor for High Technology Tel: 603-8315 7888 Fax: 603-8888 8232 www.might.org.my
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Ministry of Science, Technology and Innovation
Related Agencies Acronym Contact Malaysian Science and Technology MASTIC Level 4 Block C5, Complex C Information Centre Federal Government Administrative Centre 62662 Putrajaya
Tel: 603-8885 8038 Fax: 603-8889 2980 www.mastic.gov.my Nuclear Malaysia NUKLEAR Agensi Nuklear Malaysia, 43000 Kajang, Selangor
Tel: 603-8911 2000 Fax: 603-8911 2150 www.nuclearmalaysia.gov.my Department of Standards Malaysia DSM Century Square, Level 1 & 2, Block 2300 Jalan Usahawan, 63000 Cyberjaya
Tel: 603-8318 0002 Fax: 603-8319 3131 www.standardsmalaysia.gov.my Agensi Inovasi Malaysia AIM Level 3, West Wing, Perdana Putra Federal Government Administrative Centre 62502 Putrajaya
Tel: 603-8888 8098 Fax: 603-8888 3436 www.innovation.my
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Ministry of Rural and Regional Development
Related Agencies Acronym Contact Federal Land Consolidation and FELCRA Wisma Felcra, Lot 4780, Jalan Rejang, Setapak Jaya Rehabilitation Authority Peti Surat 12254, 50772 Kuala Lumpur
Tel: 603-4143 3646 Fax: 603-4142 8162 www.felcra.com.my Central Terengganu Development KETENGAH Karung Berkunci, No. 3, Bandar Al-Muktafi Billah Shah Authority 23409 Dungun, Terengganu
Tel: 609-8223 100 / 101 / 102 Fax: 609-8223 104 / 105 / 106 www.ketengah.gov.my Kedah Development Authority KEDA Level 2-5, Bangunan Tunku, Jalan Tunku Ibrahim Peti Surat 195, 05720 Alor Setar, Kedah Darul Aman
Tel: 604-7205 300 / 7205 301 Fax: 604-7340 958 www.keda.gov.my South Kelantan Development KESEDAR Bandar Gua Musang, 18300 Gua Musang Authority Kelantan Darul Naim
Tel: 609-9132 200 Fax: 609-9121 211 www.kesedar.gov.my South East Johor Development KEJORA Bangunan Ibu Pejabat KEJORA, Jalan Dato’ Hj. Hassan Corporation Yunus, 81930 Bandar Penawar, Johor
Tel: 607-8843 000 Fax: 607-8221 600 www.kejora.gov.my Rubber Industry Smallholders RISDA KM 7, Jalan Ampang, Karung Berkunci 11067 Development Authority 50990 Kuala Lumpur
Tel: 603-4256 4022 Fax: 603-4257 6726 www.risda.gov.my
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Ministry of Rural and Regional Development
Related Agencies Acronym Contact Majlis Amanah Rakyat MARA Level 26, MARA Headquarters Jalan Raja Laut, 50609 Kuala Lumpur
Tel: 603-2691 5111 Fax: 603-2691 5543 www.mara.gov.my Jabatan Kemajuan Masyarakat KEMAS Level 5 - 9, No. 47, Persiaran Presint 4 Pusat Pentadbiran Kerajaan Persekutuan 62100 Putrajaya
Tel: 603-3891 2000 Fax: 603-8888 2312 www.kemas.gov.my Department of Orang Asli JAKOA Level 10,20 & 20 M, Block Barat Development Wisma Selangor Dredging, Jalan Ampang 50450 Kuala Lumpur
Tel: 603-2161 0577 Fax: 603-2162 1470 www.jakoa.gov.my
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Ministry of International Trade and Industry
Related Agencies Acronym Contact SME Corporation Malaysia SME Corp. Level 6, SME 1, Block B, Lot E Malaysia Jalan Stesen Sentral 2, KL Sentral 50470 Kuala Lumpur
Tel: 603-2775 6000 Fax: 603-2775 6001 www.smecorp.gov.my Malaysia Productivity Corporation MPC Lorong Produktiviti, Off Jalan Sultan 46904 Petaling Jaya, Selangor
Tel: 603-7955 7266 Fax: 603-7957 8068 www.mpc.gov.my Malaysian Investment Development MIDA Block 4, Plaza Sentral, Jalan Stesen Authority Sentral 5, Kuala Lumpur Sentral 50470 Kuala Lumpur
Tel: 603-2267 3633 Fax: 603-2274 7970 www.mida.gov.my Malaysia External Trade Development MATRADE Menara MATRADE, Jalan Khidmat Usaha Corporation Off Jalan Duta, 50480 Kuala Lumpur
Tel: 603-6207 7077 Fax: 603-6203 7037 www.matrade.gov.my Malaysian Industrial Development MIDF Level 19, Menara MIDF, 82 Finance Bhd Jalan Raja Chulan, 50200 Kuala Lumpur
Tel: 603-2173 8888 Fax: 603-2173 8877 www.midf.com.my
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Ministry of International Trade and Industry
Related Agencies Acronym Contact SME Bank Berhad SME Bank Menara SME Bank, Jalan Sultan Ismail Peti Surat 12352, 50774 Kuala Lumpur
Tel: 603-2615 2020 Fax: 603-2692 8520 www.smebank.com.my National Institute for Entrepreneurship INSKEN Bahagian Pembangunan Keusahawanan (BPU) Level 2-C2 & Level 3-C2, Block Menara, Menara Usahawan No 18, Persiaran Perdana, Presint 2, 62652 Putrajaya
Tel: 603-8880 5005 Fax: 603-8880 5152 www.insken.gov.my Halal Industry Development HDC 5.02, Level 5, KPMG Tower, First Avenue Corporation Persiaran Bandar Utama, 47800 Petaling Jaya, Selangor
Tel: 603-7965 5555 Fax: 603-7965 5500 www.hdcglobal.com.my
Ministry of Women, Family and Community Development
Related Agencies Acronym Contact Women Development Department JPW Level 25 & 26, Menara Tun Ismail Mohamed Ali Jalan Raja Laut, 50582 Kuala Lumpur
Tel: 603-2697 1080 Fax: 603-2693 4740 www.jpw.gov.my
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Ministry of Industrial Development Sabah
Related Agencies Acronym Contact Sabah Economic Development SEDCO Level 8, 9 & 10, Wisma SEDCO Corporation Lorong Wawasan Plaza Off Coastal Highway, P.O. Box 12159 88837 Kota Kinabalu, Sabah
Tel: 6088-266 777 Fax: 6088-219 263 www.sedco.com.my Sedcovest Holdings Sdn.Bhd SEDCOVEST 3rd Floor, Wisma SEDCO Off Coastal Highway 88837 Kota Kinabalu, Sabah
Tel: 6088-266 451 Fax: 6088-219 263 www.sedco.com.my Palm Oil Industry Cluster Sabah POIC POIC Sabah Sdn. Bhd. 1st Floor, Sabah Trade Centre Jalan Istiadat, Likas Bay, Likas 88400 Kota Kinabalu, Sabah
Tel : 6088-272 261 Fax : 6088-272 581 / 580 www.poic.com.my Kota Kinabalu Industrial Park KKIP Lot 118, Export Oriented Industrial Zone Phase 1 Kota Kinabalu Industrial Park (KKIP) Jalan Sapangar, Menggatal 88450 Kota Kinabalu, Sabah
Tel : 6088-498 001 / 005 Fax : 6088-498014 / 011 www.sabah.com.my/kkip Department of Industrial DIDR Sabah 7th & 8th Floor, Block C, Wisma Tun Fuad Stephens Development & Research 88300 Kota Kinabalu, Sabah, Malaysia
Tel : 6088-214 866 / 215 035 Fax: 6088-257 814 www.sabah.gov.my/didr
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Ministry of Industrial Development Sarawak
Related Agencies Acronym Contact Department of Agriculture, Sarawak DOA Level 12 - 17, Menara Pelita Jalan Tun Abdul Rahman Yaakob Petra Jaya, 93050 Kuching, Sarawak
Tel: 6082-441 000 Fax: 6082-447 821 www.doa.sarawak.gov.my Pejabat Residen Bahagian PRB Jalan Datuk Mohd. Musa Samarahan Samarahan 94300 Kota Samarahan, Sarawak
Tel: 6082-671 205 Fax: 6082-671 289 www.samarahanro.sarawak.gov.my Pejabat Residen Bahagian Betong PRB Level 2-3, Block Menara Betong Kompleks Pejabat Kerajaan Negeri Bahagian Betong Kawasan Bandar Baru, Jalan Spine 95700 Betong, Sarawak
Tel: 6083-472 866 / 766 Fax: 6083-472 966 www.betongro.sarawak.gov.my Pejabat Residen Bahagian Kuching PRB Jalan Diplomatik, Off Jalan Bako Kuching Petra Jaya, 93050 Kuching, Sarawak
Tel: 6082-319 700 / 800 Fax: 6082-319 711 / 716 www.kucingro.sarawak.gov.my
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Organisations / Associations / Institutions Government Programmes
Name Acronym Name Acronym
Asia-Pacifi c Economic Cooperation APEC Agro-based Industry IAT
Association of Banks in Malaysia ABM Business Accelerator Programme BAP
Collection and Marketing Centre for Central Coordinating Agency CCA 4PU Entrepreneur Product Enrichment and Enhancement European Union EU E² Programme High Performing Bumiputera SME Multimedia University MMU TERAS Programme
National Human Resources Centre NHRC Inkubator Kemahiran Ibu Tunggal I-KIT
National SME Development Council NSDC Inkubator Keusahawanan Wanita I-KeuNITA
Organisation for Economic Microenterprise Competitive Rating for OECD M-CORE Co-Operation and Development Enhancement Syarikat Jaminan Pembiayaan SJPP National Dual Training System NDTS Perniagaan Berhad National Talent Enhancement Universiti Tenaga Nasional UNITEN NTEP Programme
Funds One District One Industry SDSI
Produk Malaysia Citarasa Kita PMCK Name Acronym Small Retailer Transformation TUKAR Commercialisation of R&D Fund CRDF Programme SME Competitive Rating for SCORE Fund for Small and Medium Industries 2 FSMI2 Enhancement
SME Expert Advisory Panel SEAP New Entrepreneur Fund 2 NEF2
Students in Free Enterprise SIFE Public Transport Development Fund TPPA Sustainability Achieved via Energy SAVE Small Debt Resolution Scheme SDRS Effi ciency Programme
Tunjuk Nasihat Sawit TUNAS Tabung Projek Usahawan Bumiputera-i TPUB-i
Technology Acquisition Fund TAF
The Rural Economy Funding Scheme SPED
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Government Documents Other Terms
Name Acronym Name Acronym
Capital Market Masterplan 2 CMP2 Entry Point Projects EPPs
Economic Transformation Programme ETP Foreign Direct Investment FDI
Government Transformation Programme GTP Gross Domestic Product GDP
New Economic Model NEM Government Link Company GLC
Ninth Malaysia Plan 9MP Gross National Income GNI
SME Integrated Plan of Action SMEIPA Goods and Services Tax GST
Tenth Malaysia Plan 10MP Intellectual Property IP
Third Industrial Master Plan IMP3 Kuala Lumpur International Airport 2 KLIA2
Kuala Lumpur International Financial Other Terms KLIFD District
Name Acronym Middle Level Bumiputera Entrepreneur MLBE
1Malaysia Micro Protection Plan 1MMPP Multinational Corporation MNC
Additional Economic Activities AET Mass Rapid Transit MRT
Northern Corridor Implementation Business Development Service BDS NCIA Authority
Banking Institutions BIs National Key Economic Areas NKEA Bank Negara Malaysia Laman Informasi BNMLINK Nasihat dan Khidmat National Key Result Areas NKRA
Consultative Group to Assist the Poor CGAP Non-performing fi nancing NPF
Consumer Price Index CPI Non-performing loans NPL
Credit Monitoring Service CMS Oil Field Services and Equipment OFSE
Development Financial Institutions DFIs Overnight Policy Rate OPR
Electrical and Electronics E&E One Referral Centre ORC
Electrical Home Appliances EHA Producer Price Index PPI
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Other Terms
Name Acronym
Refi nery and Petrochemical Integrated RAPID Development
Research and Development R&D
Small and Medium Enterprise SME
Strategic Reform Initiatives SRIs
Solid State Lighting SSL
Statutory Reserve Requirement SSR
Venture Capital VC
Venture Capital Companies VCC
Venture Capital Management VCMCs Companies
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Defi nition of SMEs 181
Defi nition of K-Based SMEs 183
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Defi nition of SMEs
The defi nition of SMEs is based on two criteria: • The total sales turnover/revenue by a business in a year; OR • The number of full-time employees by a business.
Generally SMEs in Malaysia are defi ned as follows: • Manufacturing sector: Sales turnover of less than RM25 million OR full-time employee of less than 150 • Services and other sectors: Sales turnover of less than RM5 million OR full time employee of less than 50
Detailed defi nition by the three category namely Micro, Small and Medium are as follows:
Annual Sales Turnover:
Manufacturing Services Sector Size (including agro-based) & Primary Agriculture (including ICT) manufacturing-related services Micro Less than RM250,000 Less than RM200,000 Less than RM200,000 From RM250,000 to From RM200,000 From RM200,000 Small less than RM10 million to less than RM1 million to less than RM1 million From RM10 million From RM1 million From RM1 million Medium to less than RM25 million to less than RM5 million to less than RM5 million
Number of Full-Time Employees:
Manufacturing Services Sector Size (including agro-based) & Primary Agriculture (including ICT) manufacturing-related services Micro Less than 5 employees Less than 5 employees Less than 5 employees From 5 to less than From 5 to less than From 5 to less than Small 50 employees 20 employees 20 employees From 50 to less than From 20 to less than From 20 to less than Medium 150 employees 50 employees 50 employees
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Defi nition of K-Based SMEs
National SME Development Council defi ned K-Based SMEs as follows:
Defi nition SMEs, including consultancy fi rms, that have knowledge workers making up more than 20% of their staff. Knowledge workers must possess at least tertiary or professional education; K-Based SMEs SMEs that directly use ICT and technology in business processes or for product improvements; SMEs that adopt innovation and R&D in business processes or for product improvements; or
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