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Introduction :
Current SME
Status
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SMEs are the Backbone of the Economy
•
SMEs account for a large proportion of businesses in Malaysia:
- 99.2% of establishments (548,267)
- Majority are micro enterprises, with 5 workers and less
Important domestic source of growth
Foundation & support in supply chain
through forward & backward linkages
Balanced growth
Strengthen resilience of the nation's
economy
Provide support to growth of new &
existing areas
Promote private sector-led growth
Source: Census of Establishments & Enterprises 2005
Performance of SMEs Outpaced the Overall Economy
SME growth outperformed overall economy for the period 2005 – 2009 mainly
due to supporting policy initiatives such as:
• Establishment of NSDC in 2004; and
• Other supportive policies (PEMUDAH, Visit Malaysia Year, Government
salary increment, RMK9 projects)
GDP & SME Growth
GDP Annual Growth (2000 price)
SME Contribution to:
GDP
31.2%
Employment
56.4%
Exports
19%
Currently, SMEs are Mainly in the Services Sector
• Services: 87% share, largest subsector is distributive trade
• Manufacturing: 7% share, mainly in textiles/apparels and F&B industries
• Agriculture: 6% share, plantation/horticulture and fishing
Manufacturing
(7.2 %)
Agriculture
(6.2 %)
Textiles & Apparels
(23.4%)
Food & Beverages (15%)
Metal & metal products
(13%)
Services
(86.6 %)
Plantation and horticulture
(65.6%)
Fishery and its services
activities (20.8%)
Poultry farming (7%)
Wholesale & Retail (55.5%)
Restaurant & Hotel
(15.2%)
Transport &
Communication (6.5%)
Source: Census of Establishments & Enterprises 2005
Major
Challenges
Faced by SMEs
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Major Challenges Faced by SMEs
Limited access to advisory services
Limited marketing & promotion strategies
Limited access to domestic & global markets
Management and technology capability constraint
Low value add and not competitive
Inadequate training
Limited capability in R&D and technology
Difficulty in retaining manpower
Difficulty in obtaining financing
Lack of international certification for export
Limited use of e-commerce and internet marketing
Strategies and
Opportunities on
SME
Development
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National SME Development Council
Highest Policy-making Body to Chart SME Development
– Chaired by the Hon. Prime Minister, with 15 Ministers
– Secretariat: SME Corp. Malaysia (w.e.f. 1 August 2008,
previously Central Bank of Malaysia)
Roles & Responsibilities
– Formulates broad policies and strategies and provides direction
for comprehensive development of SMEs across all sectors
– Oversees coordination of and ensures effectiveness in policy
implementation
3 Key Strategic Thrusts
– Strengthening enabling infrastructure
– Building capacity and capability of SMEs
– Enhancing access to financing
Strategic Goals in SME Development
Increase Business Formation – Facilitate Business dynamism
Intensify Formalisation – Incentivise innovation, growth
and promote fair competition
Raise Productivity – boost income and raise standard of living
Expand Number of High Growth Firms– substantial share
of employment, having the scale to be globally competitive
Focus Areas to Support Strategic Goals
Technology
and
Innovation
Human
Capital
Market
Access
Legal and
Regulatory
Environment
Infrastructure
Financing
Development
Programmes for
SMEs
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One Referral Centre (ORC)
Business
Advisory
SME Registry
Membership
Virtual ORC
Info Centre
ONE
REFERRAL
CENTRE
Link of
Ministries/
Agencies
Towards producing national, regional and global champions
Product Gallery
Pocket Talk
Resource Centre
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One Referral Centre (ORC)
BUSINESS ADVISORY
- Business Counselor
- SEAP Experts
INFO CENTRE
Centralized Call Centre consists of :
Info Line, Info Email, General Line
ORC LINK
Referral Counter for Ministries, Agencies, Banks & DFIs
Towards producing national, regional and global champions
RESOURCE CENTRE
- Library
- Business Centre : Photostat, printing, etc
- Touch screen kiosk + Internet Kiosk
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One Referral Centre (ORC)
POCKET TALK
- Talk from SME Corp.
-Talk from other Ministries, Agencies, Banks, DFIs
- Company presentation
- Book Launch/ Review
PRODUCT GALLERY
Showcase of products by Industry/sector cluster
- Thematic showcase
- Events/ programme
VIRTUAL ORC
- SME Corp. Corporate
Website
Towards producing national,
regional
and global champions
- SME Info Portal
SME REGISTRY MEMBERSHIP
- Membership Card
- Enjoy Benefits : current updates & Invitation for events & programmes
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SME Competitive Rating to
Enhancement (SCORE)
SCORE is a diagnostic tool used to rate and
enhance competitiveness of SMEs based on
their performance and capabilities
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About SCORE
Identifies strengths and weaknesses of SMEs in order to
recommend measures for improvements
OBJECTIVE
Facilitate linkages of
potential SMEs with large
companies / MNCs
Link export-ready companies
to MATRADE
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BACKGROUND OF SCORE
What is
SCORE?
Function
Parameter
Characteristics
Implementation
Channel
(Existing
Collaborators)
• a comprehensive diagnostic tool to rate and
enhance competitiveness of SMEs based on
their performances and capabilities.
• developed in August 2007.
Example of Radar Diagram for
3-Star company
• identify strengths and weaknesses for
improvements; and
• facilitate linkages.
• Business Performance
• Financial Capability
• Management Capability
• Production Capability
• Technical capability
• Quality System
• Innovation
• 0 – 2 Stars : Very basic business operation
• 3 – 5 Stars : Some degree of sophistication
and can be groomed for export
• Retail & Distributive Trade
(PUNB)
• Construction (CIDB)
• ICT (MDeC)
• Maintenance, Repair &
Overhaul (MINDEF)
• Professional Services
(PSDC)
Analysis:
Weak in financial capability
Assistance:
Require financial management
training
SCORE Parameters
The capability
and performance
are measured
based on 7
parameters that
vary across
sectors
The National Mark of
Malaysian Brand
One of the initiatives under the SME-Brand Development
Programme, in collaboration with SIRIM QAS International
Sdn. Bhd. to enhance the visibility of Malaysia products
and services in both local and international markets
The National Mark of Malaysian Brand
Pre-Requisite Criteria
• Business incorporated / registered
• Operating from legal premises
• A minimum 3-STAR rating under SME
Certified ISO or equivalent
• Own a Registered Brand
The National Mark of Malaysian Brand
Privileged Media
Coverage
Qualifying SMEs would
have privileged
admittance to SME
Corp. Malaysia
programmes such as
BAP, Brand
Entrepreneurship
conference, SMIDEX and
many more
Facilitate companies’
access to on-going
local and
international trade
promotion and A&P
activities by
MATRADE
Benefits
of the
Programme
Invitation to specific
training
opportunities
organised by SME
Corp. Malaysia and
its partners
Special access
passes to MICCISME Corp.
Malaysia
mentoring
programmes
Branding Innovation
Centre (BIC)
SME Corp. Malaysia in collaboration with Limkokwing University of
Creative Technology (LUCT) has established the Branding innovation
Centre to promote branding to the SMEs in Malaysia and to assist
them in building and developing their own brands of products and
services as well as to enhance SME products packaging at this Centre
Branding Innovation Centre (BIC)
To provide awareness across the country on
the importance of innovation branding and
packaging on meeting global market needs
Branding Innovation Centre (BIC)
• A bus has been allocated which
operates as the Mobile Gallery
to cover the four regions in
peninsular Malaysia namely
North, South, Central and East.
Branding and Packaging
Mobile Gallery
• It will be making trips to
designated locations to hold
workshops and training
sessions for SMEs with branding
related collaborators such as
SIRIM, MyIPO and FMM
Innovation Certification for
Enterprise Rating and
Transformation (1-InnoCERT)
A programme to recognise and certify
innovative enterprises and SMEs
1-InnoCERT
To foster and support innovative SMEs and
enterprises to be globally innovative and competitive
players
Eligible to
participate in
the Annual SME
Innovation
Award
Facilitated
access to
financial
incentives and
wider market
Benefits of
the
Programme
Eligible for
business
coaching
1-InnoCERT
SMEs will be assessed using 4 main criteria:
I
Technology
innovation
ability
II
Technology
commercialization
ability
III
Technology
innovation
management
ability
IV
Technology
innovation
result
1-InnoCERT Mechanism
On-Line Assessment
On-Site Audit
Applicant conducts a self-audit using the
On-Line Assessment Software
1-InnoCERT Auditor conducts on-site audit to
verify innovativeness of company
1-InnoCERT Committee
Approval
The 1-InnoCERT Committee (Chaired by MIGHT)
will provide final approval for certification
Award of Certification
Approved 1-InnoCERT SMEs be awarded with
1-InnoCERT Certification
Fast Track Program
Provisions of Incentives & Exemptions
including accelerated processing.
Pre-packaged with 1-InnoCERT Certificate
issuance.
On-line Innovation Self Assessment
Click To Do Online Innovation Self-Assessment at
MIGHT website http://www.might.org.my
Skills Upgrading
Programme
To provide short-term courses under 41 training centres
appointed by SME Corporation Malaysia
Skills Upgrading Programme
Objectives
To enhance skills and
capabilities of SMEs
in hard and soft skills
Benefits
To enhance the skills of
the workforce in order to
increase the efficiency,
productivity,
professionalism and
capabilities of SMEs
Business Matching
In accelerating SMEs to be resilient and competitive in the
global supply chain, Business Matching through the Industrial
Linkage Programme (ILP) is implemented to promote
competitive SMEs
Business Matching
To develop competitive and
innovative SMEs
OBJECTIVE
To widen the business opportunity of
SMEs in supplying products and
services to large companies and
Multinational Companies (MNCs)
To encourage SMEs business
networking with MNCs and GLCs
Business Matching
SMEs will be able
to increase
visibility among
potential business
partners, including
large companies,
MNCs and GLCs
Potential to boost
sales and business
opportunity
Benefits
SMEs will increase
understanding on
the requirements
and criteria
needed to supply
to MNCs and GLCs
SME Expert Advisory Panel
(SEAP)
3-Phase Programme that provides on-site assistance
and transfering technology as well as technical knowhow to the SMEs by the industry experts
SEAP
Undertake diagnostic audit on SMEs to identify
weaknesses and strengths for them to undertake
remedial measures to enhance their capabilities
The essence of the
remedial measures
is to improve
business practices,
production and
productivity
SMEs are able to
receive advice and
guidance from the
industry experts
Benefits
of the
Programme
SEAP
FOCUS OF IMPROVEMENT
•Technology improvement
•Production capacity
•Engineering
•Automation
•Machinery equipment
•Materials technology
•Process Improvement
•Designing
•Financial Management
•International Standards
•Productivity Improvement
•Maintenance
•Label & Packaging
•Quality Assurance
•ICT and Computerisation
•Business system e.g. logistic, inventory
•Lean Production System Management
Virtual SME Info Centre
Virtual SME Info Centre
One Referral Centre
Business Advisory
Services (BAS)
INFOLINE
1-300-88-1801
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