government strategies


Government Strategies

Constituting more than 99% of total business establishments in Malaysia, it is clear that promoting a viable SME sector is essential in the nation's stride towards broadening the sources of growth and sustaining the growth momentum. This is reflected in the national development agendas, namely the Ninth Malaysia Plan (9MP: 2006-2010), Third Industrial Master Plan (IMP3: 2006-2015), Eighth Malaysia Plan (8MP: 2001-2005) and Second Industrial Master Plan (IMP2: 1996-2005).

SME growth under the Ninth Malaysia Plan: 2006-2010 (9MP)

During the 9MP, the principal SME policy is the development of a competitive, innovative and technologically strong SME sector that is able to contribute to the domestic economy and compete globally. Strategies will be directed at acquiring technologies to propel SMEs up the value chain in the manufacturing, agriculture and services sector.

These include:

Programmes will be implemented to nurture SMEs as Research and Development (R&D) partners. Collaborative ventures among Multinational Corporations (MNCs), Government-linked companies (GLCs) and SMEs will facilitate technology transfer and skills development and marketing;

Creating business links between SMEs, GLCs and MNCs would enable SMEs to be more competitive and become reliable suppliers for global outsourcing networks which would expand Malaysia's trade with new export markets;

Programmes, including advisory and outreach services, will be expanded to equip SMEs with new and improved management and business practices, methods in production, quality improvement, marketing and distribution; and

Further development of technical skills amongst SMEs, especially in generating innovation and creating economic value from knowledge application.

  • Outsourcing
  • Inter-firm linkages
  • Entrepreneurship programmes
  • Knowledge skills
Strategies under the Third Industrial Master Plan: 2006-2015 (IMP3)

The priority accorded to developing domestic SMEs is further reiterated in the IMP3. The 15-year blueprint, published hand in hand with the 9MP, has outlined five clear strategies to support the development of diverse and competitive SMEs.

The five strategies are:

  • Competitive Edge - Integration and Rationalisation

  • Outward Bound - Armed and Prepared in a Global Arena

  • ICT - Friend Not Foe

  • Cohesive and Supportive Framework - Encouraging Potential to Shine

  • Nurturing the Services Sector - Towards New Areas of Growth

With the increased allocation of resources outlined in the 9MP and IMP3, the Government has demonstrated its strong commitment for the development of efficient and competitive SMEs; a commitment that is more significant than ever as Malaysia moves towards realising its objective of becoming a developed nation.

SME growth under the Eighth Malaysia Plan: 2001-2005 (8MP)

Under its Eighth five-year planning period, the Government introduced a wide range of assistance programmes for SMEs, all aimed at making them stronger and more competitive.

Highlights include :

  • Assistance provided through the Small and Medium Enterprise Corporation Malaysia (SME Corp. Malaysia) to help SMEs to enter export markets;

  • The creation of the Bumiputera Commercial and Industrial Community (BCIC) focusing on entrepreneurial, managerial and technical skills development;

  • Nurturing ICT-based SMEs by assisting local ICT and multimedia SMEs, particularly the start-up companies; and

  • Improving SME access to financing through various schemes undertaken by the Government, Bank Negara Malaysia, and banking institutions.
Strategies under the Second Industrial Master Plan: 1996-2005 (IMP2)

Efforts to strengthen SMEs were also underscored in the 10-year IMP2.

Developing stronger SMEs required major changes in the manufacturing sector, as SMEs made up over 90% of the country's manufacturing sector.

IMP2 programmes were designed to develop a resilient, broad based and internationally competitive manufacturing sector. Emphasis was placed on helping manufacturers adapt to the changing global environment. Help was also given to make these businesses more competitive in all respects. Efforts were made to vertically integrate manufacturer's supply chains, in order to enhance overall economic efficiency.

Development of Malaysian-grown brands was encouraged, as was the use of ICT tools.





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