SME Aims To Achieve 8.7 Pct GDP Growth Annually

PUTRAJAYA, July 13 (Bernama) -- The country's small and medium enterprise (SME) sector aims to achieve average gross domestic product (GDP) growth of 8.7 per cent annually from this year until 2020, through the SME Masterplan 2012-2020 launched by Prime Minister Najib Razak here on Thursday. In a statement, SME Corp Malaysia said the contribution from SME sector to GDP is targeted to increase to 41 per cent in 2020 from 32 per cent at present, while contribution to employment and exports will increase to 62 per cent and 25 per cent from the current 59 per cent and 19 per cent, respectively. "The SME Masterplan marked a new beginning in the development of SMEs by giving focus to a new approach to take them to a higher level by stimulating growth through increase in productivity and innovation. "The plan will set the policy direction for SMEs in all sectors to achieve high-income nation towards 2020 in line with the New Economic Model," according to the statement released following the launch of the masterplan. The SME Masterplan also aimed to increase company registrations by six per cent per year, expand high-growth and innovative companies by 10 per cent annually as well as raise labour productivity from RM47,000 in 2010 to RM91,000 in 2020. (US$1=RM3.18) It will also formalise efforts to promote growth and fair competition in which the informal sectors' contribution to gross national income would be reduced from 31 per cent currently to 15 per cent in 2020. The SME Masterplan proposed six High Impact Programmes (HIP), namely, integration of registration and licensing of business establishments, technology commercialisation platform, SME investment programme, going export programme, catalyst programme and inclusive innovation. The programmes will be strengthened by other complementary efforts, thus forming 32 initiatives altogether which include creating demand for SME products and services, encouraging resource pooling and services sharing, reducing information asymmetry and building capacity and knowledge of SMEs. Meanwhile, SME Corp's role as a coordinating agency will be upgraded to central agency considering it was given the mandate to spearhead the plan and carry out the functions of coordination and evaluation of SME programmes which involved 15 ministries and 60 agencies. The agency will be strengthened and given bigger power and autonomy through new laws, of which among the changes that will be implemented are strengthening support institutions to meet the needs for the implementation of HIP and providing sufficient funds allocation to develop system and skills. "The transformation to implement the new mandate will be carried out in stages. Good corporate governance structure to institutionalise the implementation through driving committee at the highest level and at the working committee level will also be done. In line with this transformation, SME Corp Malaysia will be rebranded as One Referral Centre (ORC) for the development of micro, small and medium enterprises in the country," according to the statement. -- BERNAMA