PM Underlines Six High Impact Programmes To Boost SME Growth

PUTRAJAYA, Nov 23 (Bernama) -- Prime Minister Najib Razak on Wednesday underlined six high impact programmes that will boost the growth of small and medium enterprises (SMEs) to 8.7 percent by 2020. He said the programmes were among 32 key measures that the government would introduce to achieve the new SME growth target which was achievable through Phase Two of the SME Masterplan (2012-2020). "Without government intervention, the SMEs are expected to grow 6.5 percent annually," he told reporters after chairing the SME Development Council at his office here. The six programmes include the introduction of an integrated registration and licensing of businesses aimed creating a one-stop registration centre through the MyCOID business registration system and the Business Licensing Electronic Support System (BLESS). The government will also introduce a technology commercialisation platform run by the private sector to promote innovative ideas from the proof-of-concept stage to commercialisation. Another initiative is the introduction of an SME investment programme to provide seed funding to potential SMEs through investment firms. A going export programme will focus on exporters and SMEs intending to venture into new markets overseas while a catalyst programme will aim at creating local champions through a more focused approach on financing support and access to market and human capital development. Inclusive innovation will be specially created to enable the 40 percent lowest-income group make use of innovation to encourage transformation in the community including micro businesses in rural areas through handholding and technical and operational support. The prime minister said SME development was very important because 99 percent of businesses in the country were contributed by the sector. By achieving the SME development target, he said, it would meet the macro target stipulated under the masterplan, namely to raise SME contribution to GDP from 32 percent in 2010 to 41 percent in 2020. The SME contribution to employment was targeted to increase to 62 percent from 59 percent presently while exports from 19 percent to 25 percent. Najib said although the country had succeeded in developing the SMEs, several positive and bold steps were needed to ensure the sector continue to grow in tandem with developed countries. "We take note that compared with developed countries, the productivity of our SMEs is still low while theirs is four to five times higher," he said. He said the government's target was to raise the productivity of SMEs from RM47,000 in 2010 to RM91,000 by 2020. (US$1=RM3.17) Meanwhile, the prime minister also said Wednesday's meeting had decided that SME Corp would serve as the main agency that will coordinate and implement measures regarding SME development. He said the biggest challenge to ensure the success of the masterplan was coordinating all actions by the various ministries and agencies related to SME development. "Now, there are 56 ministries and agencies related to SME development. So, a review will be conducted and SME Corp's role will be strengthened and enhanced by giving it more power. "Besides, all programmes by the 56 agencies and ministries will be reviewed to avoid duplication and to ensure their roles are more coordinated and focused," he said. -- BERNAMA Malaysia