KUALA LUMPUR, Nov 4 – A total of 174 programmes, including 17 new ones, worth RM3.04 billion are being implemented this year to further enhance the capacity and capabilities of small and medium enterprises (SMEs), Datuk Seri Najib Tun Razak said today.
To ensure effective and efficient implementation of the programmes, the Prime Minister said the SME Corp Malaysia will introduce a new framework to closely track implementation of the programmes and undertake independent assessment using an outcome-based approach, namely the Impact Analysis Framework on SME Programmes.
Last year, 202 programmes worth RM3 billion were carried out, benefiting 598,000 SMEs, accounting for a two-fold increase from the number of beneficiaries in 2007, he told reporters after launching the SME Annual Report 2008 titled “Rising to Meet Global Challenges”.
The report, an annual publication, is one of the primary outreach initiatives of the National SME Development Council to disseminate information to all stakeholders in SMEs’ development.
“All these initiatives bear testimony to the government’s firm commitment to continue developing SMEs. SMEs will be developed based on three strategic thrusts, that is, strengthen infrastructures that support, develop capacity and capabilities and increase access to financing,” said Najib, who is also Finance Minister.
The Prime Minister said the focus of SME development programmes will be on building capacity and helping SMEs to overcome key challenges.
According to the report, Najib said the vision was to elevate SMEs to a higher level, aimed at increasing SMEs’ contribution to the gross domestic product (GDP) to 37 per cent next year from 32 per cent in 2005, boost exports to 22 per cent from 19 per cent and employment to 57 per cent next year.
The report also highlighted that despite the economic slowdown, SMEs in the manufacturing sector continued to maintain high productivity last year led mainly by export-oriented industries.
Similarly, productivity in the services and agriculture sectors continued to increase, with the former supported by the transport, trade and finance sectors, while the latter was aided by high commodity prices, resulting from rehabilitating and developing idle land.
It also emphasised the instrumental role of the Information and Communications Technology (ICT) such as the Internet, e-payment and e-commerce in enhancing efficiency, productivity and performance in SMEs.
Banking institutions’ role in supporting SMEs is reflected in the share of SME financing to total business financing which has risen to 40 per cent as at end of September.
Banks remain the main source of financing for SMEs as they contributed RM124.8 billion or 90 per cent of total SME financing last year.
SMEs’ approval rate remained relatively high at 81 per cent between January and September this year, the report said.
The report also identified new potential areas that SMEs could venture into in the manufacturing, services and agriculture sectors.
The government will continue to provide infrastructure, institutional framework and appropriate incentives to facilitate conducive investment environment for the private sector to leverage on new business opportunities, it added. – Bernama
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