SME Annual Report 2010/11:
‘Leveraging Opportunities, Realising Growth’

Kuala Lumpur, 23 November 2011– The Small and Medium Enterprises (SME) Annual Report 2010/11 was released today by YAB Prime Minister as he chaired the 12^th meeting of the National SME Development Council (NSDC). The Report is one of the significant initiatives of the Council aimed at providing the current assessment on the performance of SMEs and the SME development programmes during the year.

Performance of SMEs in 2010
In 2010, against a backdrop of a challenging global environment, Malaysian SMEs have continued to remain resilient. Value added of SMEs expanded by 8.4%, well within the official projection of 8 – 8.5%.For the seventh consecutive year, the growth was higher than the overall GDP growth, hence resulting in SME contribution to GDP to increase from 28.1% in 2003 to 31.9% in 2010. The Report which released new time series data on employment and productivity showed that the favourable growth performance of SMEs was accompanied by gains in productivity. Productivity of SMEs grew at an average annual rate of 4% versus 3.1% for large firms during the period 2003 - 2010.

Following these positive developments, the focus now is to integrate SMEs into the economic mainstream, as SMEs leverage on opportunities arising from trade liberalisation and the Economic Transformation Programme (ETP) in order to realise their growth potential. Hence, the theme of this year’s Report is “Leveraging Opportunities, Realising Growth”.

SME Development Initiatives
In 2010, a total of RM7.1 billion was expended to implement 226 programmes which benefited over 600,000 SMEs. This year, another RM5.9 billion has been allocated to carry out 219 programmes which are expected to benefit more than 400,000 SMEs nationwide. To ensure the effectiveness of these programmes in delivering the desired results, the Government has gone a step further by implementing a result-based approach which is assessed at three levels, namely the macro, programme and firm levels.

SME Masterplan - A New Approach to Accelerate Growth
Moving forward, SMEs are poised to assume an even greater role in propelling Malaysia under the ETP. As the new role will bring along new challenges which include liberalisation measures in the services sector, there is a need for a new approach to SME development to accelerate the growth of SMEs. In this regard, the Government is finalising the SME Masterplan that will chart the policy direction for SMEs through the year 2020 by creating a conducive ecosystem for SMEs to thrive and to transform domestic SMEs to be globally competitive towards enhancing wealth creation and contributing to social well-being of the nation.

The Report incorporated inputs from the Ministries and Agencies involved in SME development across all economic sectors. It is available in both English and Bahasa Malaysia and accessible online via the SME Corp’s website (www.smecorp.gov.my) and SME Info Portal (www.smeinfo.com.my)

For more information, please contact:Ms. Karunajothi Kandasamy tel: 03- 2775 6286 or Ms Suraini Sulaiman tel: 03-2775 6290

Click here to download malay version

Putrajaya, 23 November - The National SME Development Council (NSDC) which is the highest policy making authority on Small and Medium Enterprise (SME) development in the country endorsed the second phase of the SME Masterplan (2012 - 2020) today.

Prime Minister, Y.A.B. Dato’ Sri Mohd Najib Tun Haji Abdul Razak chaired the 12th Council meeting with Ministers from the relevant ministries and heads of key agencies, revealed the details of the Plan that would create an ecosystem to accelerate the growth of SMEs towards achieving a high income economy. In line with this, the Government will ensure that the implementation of the Plan will be a part of the Rural Transformation Programme (RTP), which the main objective is to modernise the rural area, increase the infrastructure, income level and the rural population economy. As a result of this implementation, rural area integration with the economic main stream, rural entrepreneur involvement in the global supply chain and economic activities that directly involve in inclusive innovation can be achieved.

The SME Masterplan is an inclusive plan for all SMEs, across sectors, regions (i.e. East Malaysia and rural) and strategic areas (i.e. Bumiputera and women). The Plan proposes bold measures not only to develop champions but also to develop microenterprises to ensure balanced growth.  

SME Masterplan (2012 - 2020)

At the last meeting in April 2011, the Council had endorsed the First Phase of the Plan which comprised the new SME development Framework and the broad policies and strategies. Today, the discussion was on translating the policies and strategies into     32 key initiatives, including the six high impact programmes (HIPs) that would contribute significantly to achieving the targeted goals. The details are as follows:

HIP 1:   Integration of registration and licensing of business establishments aims to create a single registration point through interfacing of the current National Business Registration System (MyCOID) and the National Business Licensing System (BLESS). The initiative is to simplify procedures to reduce the lag time and costs involved in starting a new business. The initiative will also enhance formalisation as registration will be mandated as pre-requisite to licensing;
             
HIP 2:   Technology Commercialisation Platform (TCP) is to provide a national network of privately-managed platform to promote innovative ideas right through from proof of concept (POC) to the commercialisation stage. TCP will be designed to remove market barriers to innovation by providing linkage to a range of services including infrastructure support, financing, technical assistance, market information and capacity building;

HIP 3:   SME Investment Programme (SIP) is to provide early stage financing through the development of investment companies which would invest in potential SMEs in the form debt, equity or a hybrid of both. This will expedite the growth of the venture capital industry in the country that can support innovative SMEs and start-ups;

HIP 4:   Going Export (GoEx) Programme offers customised assistance to new exporters and SMEs venturing into new markets. Export-ready firms can avail to comprehensive support which among others include linkage to market expertise and buyers, and compliance to standards to expedite internationalisation of services and products;

HIP 5:   Catalyst Programme is to create homegrown champions through a targeted approach with support in the area of financing, market access and human capital development. Participants of the Programme will be selected through a transparent selection criteria and exit mechanism; and 

HIP 6:   Inclusive Innovation is specifically designed to empower the bottom 40% of the income group to leverage on innovation to promote transformation of communities including microenterprise in the rural areas through handholding and technical and management support.

On this matter, the Chairman has emphasized that the SMEs have to step up the usage of online system to generate higher income.

He said, “We have to promote inclusive innovation, especially when it increases the output.”

The Plan will build on existing initiatives which resulted in SMEs outperforming the overall economy in terms of value added, employment and productivity growth. In the period 2004-2010, value added growth of SMEs had consistently exceeded that of the overall economy to average at 6.8% versus 4.9% for overall GDP. 

These six programmes reinforced by other key initiatives including creating demand for SME products through Government procurement; resource pooling to overcome scale disadvantages; reducing information asymmetry; building capacity of SMEs and specific measures for East Malaysia will set the pace to achieve the following goals during the period 2012 - 2020:

• To increase business formation to facilitate a constant stream of new entrants into the market (target of 6% per year increase in registration of new companies);
• To expand the number of high growth and innovative firms (10% per year) as they generate bulk of employment and output in the country;

• To raise labour productivity of SMEs from RM47,000 per worker in 2010 to RM91,000 per worker in 2020; and

• To intensify formalisation to promote growth and fair competition (informal sector reduced from 31% of GNI to 15% in 2020).

Achieving the SME development goals will contribute towards meeting the macro targets set in the Plan, namely:

• To increase the contribution of SMEs to GDP from 32% in 2010 to 41% in 2020;
• To increase the employment share from 59% to 62%; and
• To increase the export share from 19% to 25%.

The vision is to create globally competitive SMEs that enhance wealth creation and contribute to the social well-being of the nation.

Y.A.B. Prime Minister agreed that the implementation of the Masterplan to be coordinated by SME Corporation Malaysia with other Ministries and Agencies to provide the cooperation and support in order to ensure the success of the Plan.

The Masterplan would require some restructuring of the current mechanism to enhance coordination and for greater optimisation of resources to achieve the desired results.

Other Decisions and Update
Besides the SME Masterplan, other decisions that were made by the Council included the following:

• Establishment of a National Steering Committee for Incubation Programmes
  An inter-ministry Committee which would be led by the Ministry of Science, Technology and Innovation (MOSTI) will look into development programmes to ensure the effectiveness of existing incubation centres, including proper maintenance and increased utilisation of facilities. This programme supports initiatives in the Masterplan to promote innovation and high growth companies.

• Annual “SME Week”
  Every year beginning 2012, the fourth week of June will be declared as the “SME Week” during which all related Ministries and agencies will have a nationwide outreach campaign to promote SME development initiatives. The activities will include competition, exhibitions, awareness sessions and business linkages for entrepreneurs.

The Council also noted the initiatives carried out by the Focus Group on Business Process Re-engineering under the Special Task Force for Service Delivery (PEMUDAH) to reduce and facilitate compliance for business licences saw further progress. From March to November 2011, a total of 405 licences under 23 Ministries have been reduced. This contributed towards reducing compliance costs by the business community which is estimated at around RM729.2 million.

The Department of Statistics Malaysia (DOSM) reported the smooth implementation of the Census which began in May 2011. Thus far 82% of the data compilation has been completed covering around 943,000 business establishments. The report will include statistics on SMEs and is expected to be completed by June 2012.

SMEs in the country continuously have access to financing. As at the end of September 2011, the total outstanding financing amount by financial institutions amounted to RM158 billion and benefit some 559,000 SMEs. Financing to green technology projects are also on the rise with 24 companies approved under the Green Technology Financing Scheme amounting to RM350.6 million.

Download Malay version here

Secretariat
National SME Development Council
23 November 2011

Kuala Lumpur, 28 September 2011 - SME Corporation Malaysia today released the Financial Guide for SMEs, to assist new and budding entrepreneurs with the aim to improve their financial management skills. The launching ceremony was officiated by YB Dato’ Mukhriz Tun Mahathir, the Deputy Minister of International Trade and Industry. The Guide, an initiative by the Government to promote good financial management practices among SMEs, is specifically targeted at entrepreneurs who often do not have formal financial management training and have limited resources to engage such services. Of importance, the Guide will serve as a useful reference for those who need external financing as it emphasises on the importance for SMEs to establish good financial record and credit worthiness in order to increase their bankability.

2. The Guide is an outcome of a collaborative effort between SME Corporation Malaysia and CPA Australia, whereby the Australian version “Achieving Financial Success” was modified to suit the Malaysian context. The launching was graced by representatives from CPA Australia, Ministry of International Trade and Industry, Bank Negara Malaysia and relevant financial institutions and industry associations. During the launching ceremony, YB Dato’ Mukhriz handed the Guide to representatives from key industry associations and agencies to symbolise the beginning of the collaboration between SME Corporation Malaysia and the associations in expanding the outreach for the Guide. “I am pleased to see such collaboration taking place as what the Government has been envisioning when it comes to strengthening the public-private sector partnership in the national agenda,” said YB Dato’ Mukhriz. To ensure balanced development across regions and inclusive growth, the Deputy Minister also urged officials from East Malaysia to work with trade associations in their region to ensure outreach even to the remotest business communities.

3. The reader friendly Guide looks at A to Z on financial management for SMEs - understanding basic financial statements to improving business finance to managing debt. More importantly, the book also discusses at length on how SMEs can finance their business. The key messages and tips are also summarised making the Guide a useful reference material.

4. Going forward, SME Corporation Malaysia as an Agency responsible in coordinating and promoting SME development in Malaysia will continue to undertake a series of publications aimed at enhancing SMEs’ knowledge on areas that are pertinent to business operations. This is essential not only to promote easy access to information for SMEs, but most importantly to ensure that they are equipped with all the necessary tools for them to manage their business successfully. SME Corporation Malaysia will continue to work closely with the private sector such as the industry associations to leverage on their existing platform to ensure effective and efficient outreach of such information to SMEs.

5. The Guide which is free of charge is available both in English and Bahasa Malaysia and can be obtained from the One-Referral Centre at SME Corporation Malaysia. The Guide can also be accessible online via the website of SME Corporation Malaysia (www.smecorp.gov.my) and SME Info Portal (www.smeinfo.com.my).

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Financial Guides for SMEs (ENG)

Panduan Kewangan untuk PKS (BM)

For more information, please contact:
Ms K. Karunajothi tel: 03-2775 6286 or Ms. Suraini Sulaiman tel: 03- 2775 6290

KUALA LUMPUR, 7 June 2011 – YAB Deputy Prime Minister, Tan Sri Muhyiddin Yassin, announced a package of incentives under the Green Lane facility that would benefit innovative SMEs in the country. This was announced at the launch of SMIDEX 2011: SME Innovation Showcase at the Kuala Lumpur Convention Centre today. SMEs that qualify for the incentives are set to gain:

• two percent interest rebate for approved loans by Developmental Financial Institutions (DFIs) and exempted stamp duty on the loan agreement document;
• tax deduction on expenses incurred to acquire 1-InnoCERT certification;
• fast track registration in e-Procurement in only 1 day from the current 7 days;
• priority to participate in Government Offset Programmes; and
• privileges in Government and the Ministry of Finance Incorporated companies’ procurement.

The annual event, from 7- 9 June, is organised by SME Corporation Malaysia (SME Corp. Malaysia) and the Ministry of International Trade and Industry, with the theme “Pioneering Business Transformation through Innovation”. Now in its 2nd year running, the SME Innovation Showcase provides a platform for SMEs not only to showcase their capabilities, but also opportunities for networking. In addition to the showcase, Business Matching sessions are also pre-arranged between potential buyers and suppliers/vendors.

The Event was also the stage for the inaugural SME Innovation Award 2011, which is the premier Award to acknowledge and recognise the most innovative SME for the year. The award program a joint effort between SME Corp. Malaysia and SIRIM, recognise the most innovative SMEs in six (6) categories:

• Manufacturing;
• Services & Construction;
• ICT and Electrical & Electronics;
• BioTech & Agro Tech; and
• Green Technology

The 1-Innovative Certificate for Enterprise Rating and Transformation (1-InnoCERT) Programme criteria and mechanism was used to select the winner for the SME Innovation Award. The Top Most Innovative winner was awarded with a RM1 million cash prize,presented by YAB Deputy Prime Minister at the opening ceremony.

In conjunction with this Event, the ASEAN–China SME Conference 2011 will be held back to back from 8 – 9 June 2011 at the Plenary Hall. Participants of the Conference will benefit from the updates, information and ideas on business opportunities and investment prospects in both ASEAN and China arising from the implementation of the ASEAN-China Free Trade Agreement (ACFTA).

To ensure that SMEs are well prepared for the challenges in more liberalised trade environment, “The Government support for the SMEs in the future will be guided by an SME Masterplan which is being formulated by SME Corp in collaboration with the World Bank. The plan focuses on the programmes that will accelerate the growth of SMEs through productivity gains and innovation” said YAB Deputy Prime Minister. The SME Masterplan is executed in two phases. The first phase focuses on strategy that has been endorsed by the National SME Development Council while the second phase is a dedicated phase to define specific courses of action that is currently being prepared.

Deputy Prime Minister and Deputy Minister of International Trade and Industry then witnessed the signing of two Memorandum of Understandings (MoUs) between SME Corp. Malaysia and:

• Office of Small and Medium Enterprises Promotion (OSMEP), Thailand; and
• Iran Small and Industrial Parks Organisation (ISIPO), Iran;

The objective of the MOU is to set out the general principles of collaboration between SME Corp. Malaysia together with OSMEP and ISIPO, which will identify fields of mutual interest and opportunities to develop programmes for cooperation in the areas of training, expertise, information, R&D and other knowledge-based activities related to the development of SMEs on the basis of reciprocity and mutual benefit.

The Event also witnessed the MoU signing between The Boeing Company with three (3) Malaysian companies; Composites Technology Research Malaysia Sdn Bhd (CTRM), SME Aerospace of Malaysia and Spirit AeroSystems of Malaysia. Boeing planned to pursue business opportunities for manufacturing specialised components and equipment for use in the defense and aerospace sectors with these Malaysian companies.

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CIDB Malaysia is organising the11th INTERNATIONAL CONSTRUCTION WEEK 2012 [ICW 2012] which will be held on 13 – 16th February 2012 with the theme Transformation.

This event will be officiated by YAB Prime Minister of Malaysia. The 4 days programme includes a Career Fair, an international exhibition and several concurrent conferences. The 3-days exhibition which will be held on 14 - 16th February 2012 will provide a platform to participating exhibitors to showcase their latest projects, products, services or technology to the construction industry players.

ICW 2012 will provide a unique opportunity for the construction industry stakeholders to network, learn and share their experiences in meeting market challenges and fulfilling demands through the adoption of leading edge mechanisation in construction and the evolution of information technology in construction sector. ICW 2012 is designed to attract a good mix of construction industry community. A must for all industry stakeholders!

Main programme of ICW 2012:

1. Construction Industry Career Fair
2. Malaysian Construction Industry Review & Outlook Seminar 
3. Green Construction Conference 
4. International Construction Conference 
5. ASEAN Construction Summit
6. Exhibition:
   1. Construction Showcase Exhibition
      1. Capacity Building and Professional Services 
      2. Mega Projects Showcase 
      3. eConstruction Fair 
      4. Mechanisation & Automation in Construction 
      5. Safety, Health & Environment 
      6. Infrastructure Projects Showcase 
      7. MCIEA Hall of Fame
      8. Asset and Facilities Management 
   2. GreenBuild Asia Exhibition

We would also appreciate if you could assist us to market ICW 2012 to your colleagues, business associates and friends.

For more information, please call +603 4042 8880 or email us at icw12@cidb.gov.my or ecidbh@cidb.gov.my .
More information on ICW 2012 is available at http://www.cidb.gov.my.

Malaysia International Tourism Exchange (MITE) 2012

The largest tourism exchange event in Malaysia, MITE 2012 is not only inviting the domestic and foreign travel agencies and tourism companies like one would usually find in a common tourism fair. Advocating the extensive growth of the tourism industry by a more proactive approach, MITE 2012 has also secured the participation of ministries, foreign missions in Malaysia, members of the media, trade members and tour operators both from Malaysia and abroad to support the effort.

MITE 2012 will also be filled with non-stop fun-packed activities such as international performances and showcases, seminars, games and competitions. Meanwhile, the event will also share and exchange international cultural habits and practices, festivities plus mouthwatering food showcase which will definitely make MITE 2012 an inspiring and exciting experience.

About MITE 2012

Malaysia has abundant tourism resources, unique natural landscape as well as culture and multi-ethnic customs. A joint effort between the Government and the private sector internationally saw many efforts in restorations and maintenance of tourist destinations. The diverse and innovative promotional campaigns have successfully place tourism as one of the fastest moving industries.

Malaysia registered an amount of 24,577,196 tourist arrivals in 2010, an increase of 3.9% compared to Year 2009 making Malaysia the Top 10 tourist destination. Despite the challenging global economic scenario, tourism Malaysia made its mark as a key revenue generator to the Malaysia economy. A record of MYR 56.5 billion in tourist receipts was generated in 2010; a growth of 5.8% compared to MYR 53.4 billion in 2009.

In recent years, Malaysia statistics have also shown that the numbers of Malaysians traveling outbound have also increased. This has also proved that the demand in International tourism within Malaysians holds tremendous potential. The Malaysian tourism and hospitality industry has thus emerged as one of the key sectors driving the country's growth and is thriving, owing to a huge surge in both business and leisure travel by foreign and domestic tourists. Possible steps are being taken to promote tourism related infrastructure such as the hotel and travel Industry, developing tourism circuits, working towards preservation of monuments, human resources development, and, up-gradation of technology.
               
For the future of international tourism, Malaysia hopes that International governments, private profit and non-profitable organizations will join forces towards developing tourism to the next level. The global effort to actively promote tourism will remove boundaries, loosen policies and stimulate factors favoring tourism, which certainly makes tourism a more fruitful and friendly industry.

Setting the right pace with its objective, Ministry of Tourism Malaysia is supporting the Malaysia International Tourism Exchange 2012 and it is an event designed to promote and further developed the tourism industry. As an annual event, MITE' 12 is targeted to strategically bring together the international travel and tours industry related provider and services under one roof to explore and seize the many opportunities from this industry globally.

The event will also be filled with non-stop fun-filling activities such as international performances and showcases, seminars, games, competitions and competitions. In addition to that, the event wills also share and exchange international cultural habits and practices which include festivities and also scrumptious food showcase. The four-day event which will take place at Malaysia Agro-Exposition Park Serdang (MAEPS), is expected to draw more than 700 exhibitors and 500,000 visitors from around the region & globally, young or old.

Dates & Venues

31 May 2012 - 3 June 2012
Opening Times: 10 am – 7 pm
MAEPS, Serdang, Selangor
Malaysia Agro - Exposition Park Serdang

About MAEPS - The Venues

MAEPS was established to serve as a centre for agro-based events and activities. It is host to MAHA, as well as more industry-focused events and activities developed to promote the agriculture industry to the Malaysian public. The exhibition park resides on a 385.98 acre land belonging to the Malaysian Research and Development Industry (MARDI). As one of the largest exhibition parks and showgrounds, MAEPS is the driving force behind the success of the agricultural industry in Malaysia. The Ministry of Agriculture and Agro-based Industry has successfully positioned agriculture as a profitable industry with its motto "Agriculture is business."

MAEPS was developed to serve these objectives:

• Permanent place for MAHA (Malaysia Agriculture, Horticulture and Agro Tourism)
• Contribution to the Tourism and MICE Industry

Exhibitors Profile

• Adventure Tourism
• Agro-tourism
• Airlines
• Arts & Heritage Centres
• Banking & Financing Operators
• Cuisine Tourism
• Cruise / Ferry Services
• Eco-Tourism
• Education Tourism
• Entertainment Outlets
• Government Tourism Board
• Green Tourism
• Health Tourism
• Home Stay         
• International Tourism Board
• Luxury Travel Goods & Accessories
• M.I.C.E operators
• Property & Leisure Tourism
• Recreational Tourism
• Shopping and megamall operators
• Spas & Resorts
• Technology: Reservation Systems &Telecommunication Provider
• Tours and Travel Operational
• Tourism Investment Company
• Travel Insurance Provider
• Travel and Tours Media
• Malaysia SME Showcase

Visitors Profile                 

• Academics and Researches
• Business Owners, CEO, COO
• Bankers and Investors
• Buyers & Procurement Officers
• Decision Makers
• General Public
• Government Officials
• Students
• Trade Offices Associations

Contact Us

Mr. Chris Daniel Wong
Senior Group Director

MY EVENTS SDN.BHD.
Lot 3.03,
3rd Floor, Bangunan KWSP Changkat Raja Chulan,
Off Jalan Raja Chulan,
50200 Kuala Lumpur. Malaysia.
Tel: (603) 2035 5777
Fax: (603) 2035 5797

Website: www.myevents.com.my
Email: chris@myevents.com.my

MITE website: www.mite2012.com

Click here : MITE FA SALES

Tempat : Pulau Langkawi
Tarikh: 28 - 29 Mac 2012
Yuran Penyertaan: RM50.00

Klik sini untuk mendapatkan jadual program Jaringan Sinergi Usahawan Wanita

Untuk maklumat lanjut, sila hubungi:

• Puan Zafina Mohd. Akbar (zafina@smecorp.gov.my) -03-2775 6186
• Puan Nur Johanna Riswan (johanna@smecorp.gov.my) -03-2775 6193

Speaker  :  Dr Tat-Hean Gan,
Technology Group Manager, TWI Ltd , UK &
Director of Brunei University Innovation Centre, UK

Date : 2nd Feb 2012 (Thursday)
Time : 2.00pm - 6.00pm
Venue : The Royale Bintang  Hotel (The Curve)
Petaling Jaya, Selangor    

Fee :  RM150.00 per participant (WIM member)
RM250.00 per participant (Non - member)

HRDF : SBL Scheme

Who should participate?
Engineers, Maintenance Managers, QA/QC Managers, Welding Inspectors / Supervisors and all those involved in NDT Inspection and application.

Benefits:
First hand knowledge and information from an expert on NDT on the latest advanced NDT Techniques for pipeline inspection and application

Click here for more information and registration