Malaysia's SME GDP Projected To Grow At 5.0–5.5 PCT In 2016

KUALA LUMPUR, Oct 1 (Bernama) -- The Small and Medium Enterprises' (SMEs) Gross Domestic Product (GDP) is projected to grow 5.0 per cent to 5.5 per cent this year compared to 6.1 per cent in 2015. SME Corporation Malaysia (SME Corp) said in a statement Fridtoday that this was due to the continued weakness in the global economy, high degree of uncertainty and the expected moderate economic growth of the Malaysian economy. "The growth is premised on barring any sharp deterioration in external demand, volatility in financial markets due to uncertainty in the policy direction of developed markets and also the unexpected fall in domestic demand," it said. Today, SME Corp released the SME Annual Report 2015/2016, which marked its 11th publication since its inception in 2005. It said from 2011 to 2015, SMEs grew at an average annual rate of 6.7 per cent versus the overall GDP growth of 5.3 per cent. "As a result, SME contribution to GDP increased from 32.2 per cent in 2010 to 36.3 per cent in 2015," it said. Based on the First Quarter 2016 SME Survey, SME business performance showed a gradual improvement and more respondents have experienced a rise in sales and profits as compared to the findings in the Third Quarter 2015 SME Survey. Going forward, the SMEs expect a gradual improvement in business performance as reflected in a better near-term outlook and higher orders or bookings received by the survey respondents. The annual report also covers SME development, entrepreneurship programmes implemented in 2015 and being undertaken in 2016, special highlights of SME-related initiatives, opportunities and benefits to SMEs, as well as success stories. -- BERNAMA