Masterplan to increase SMEs GDP contribution to 41 per cent by 2020

Wednesday, February 13, 2013

KOTA KINABALU: The Small and Medium Enterprise (SME) Corporation Malaysia Masterplan (2012-2020) targets to increase the contribution of SMEs to the GDP from the current 32 per cent to 41 per cent by 2020.

It will be achieved through the implementation of six High Impact Programmes (HIPs) where it will address the business needs and create an overall conducive ecosystem for SMEs.

“The focus for the Masterplan is on enhancing ease of doing business, promoting innovation including addressing early stage financing needs and to open up avenues for SMEs to export their products,” said SME Corporation Malaysia economics and policy planning division, senior director Karunajothi Kandasamy.

“The Masterplan also has specific initiatives for SMEs in East Malaysia, mainly to promote SME growth in the economic corridors of Sarawak and Sabah. SME Corporation is currently working together with the lead ministries and agencies in rolling out theSME Masterplan,” said Karunajothi when presenting a half day briefing on the “SME Masterplan 2012-2020” at a hotel.

The Masterplan marks a new beginning in SME development, focusing on a new approach to bring SMEs to the next level by accelerating growth through productivity gains and innovation, she said.

“The target is to raise the contribution of SMEs to be comparable to those in other countries by 2020, with the share of GDP increasing to 41 per cent from 32 per cent currently, while the share to employment and exports to increase to 62 per cent and 25 per cent respectively (currently 59 per cent and 19 per cent respectively),” stated Karunajothi.

The SME Masterplan envisions on creating globally competitive SMEs to enhance wealth creation and social well-being of the nation through four strategic goals: increase business formation; expand the number of high growth and innovative firms; double labour productivity of SMEs (RM47,000 in 2010 to RM91,000 in 2020); and reduce the informal sector from 31 per cent of GNI to 15 per cent in 2020.

To achieve these goals, she said initiatives under the Masterplan will specially address constraints in the six performance levels, namely innovation and technology adoption, human capital development, access to financing, market access, legal and regulatory environment as well as infrastructure.

The Masterplan is evidence-based and will focus on outcomes. It also introduces a ‘live plan’ concept that will be fine tuned to remain relevant with the changing times. The plan is also inclusive, covering all SMEs across sectors, strategic areas, ethnic groups and geographical locations including East Malaysia.

The Masterplan proposes six HIPs and will be further reinforced by other complementary measures to bring the total to 32 initiatives.

The first HIP is an integration of registration and licensing of business establishments which is to create a single registration point through interfacing of the current National Business Registration System i.e. MyCoID and the National Business Licensing System i.e. BLESS.

HIP 2 is technology commercializstion platform (TCP) which is to establish a national network of privately managed platforms to promote innovative ideas from proof of concept to the commercialisation stage.

HIP 3 is a SME investment programme (SIP) to provide early stage financing through the establishment of investment companies to invest in potential SMEs in the form debt, equity or a hybrid of both.

HIP 4 is a going export (GoEx) programme which offers customised assistance to new exporters and SMEs venturing into new markets. Export-ready SMEs can avail to a comprehensive support assistance.
HIP 5 is a catalyst programme to create homegrown champions through a targeted approach with support in the area of financing, market access and human capital development.

And HIP 6 is an inclusive innovation to empower the bottom 40 per cent of the income group to leverage on innovation through the transformation of the rural community through handholding approach.






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