Boosting growth of SMEs

By Thursday November 24th, 2011 No Comments

PUTRAJAYA: Six high impact programmes have been underlined to boost the growth of small and medium enterprises from an annual growth of 6.5% to 8.7% by 2020.

Datuk Seri Najib Tun Razak said the programmes were among 32 key measures that the Government would introduce to achieve the new SME growth target which would be achievable through Phase Two of the SME Masterplan (2012-2020).

“Without government intervention, the SMEs are expected to grow by 6.5% annually,” the Prime Minister said 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 at 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.

Also included in the plan are 32 key initiatives endorsed by the National SME Development Council (NSDC) here yesterday.

“The SME sector plays an important role in our country’s economic development as 99% of our businesses consist of SMEs and they contribute 32% to our gross domestic product.

“Although we have success in promoting the sector, the SME here is still not on par with those in developed countries in terms of productivity,” Najib said.

Among the other five high-impact programmes outlined by Najib are the SME Investment programme to provide potential SMEs with early stage financing, a Catalyst Programme to assist selected homegrown talents in the areas of finance, market access and human capital development, and a specific programme to empower the bottom 40% of the income group by providing innovation support to micro enterprises in rural areas.

According to Najib, the masterplan is expected to increase the GDP contribution of SMEs from 32% last year to 41% by the year 2020 and see an increase in export share from 19% to 35% during the same period.

“For this masterplan to succeed, the challenge is to streamline the initiatives that will be undertaken by the 56 relevant ministries and agencies involved with SMEs,” said Najib.

He added that SME Corporation would be the main agency in charge of the plan.

Source : The Star

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