Monday, May 14, 2012

RM500m boost for 'edge-cutters'

Source From (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/pesah/Article/

Published: on 14 May 2012

CUTTING-EDGE is a frequently used English idiom used to describe "something that is particularly advanced or brand new in terms of technology and innovation".

Hence, the recent announcement by Datuk Seri Najib Razak on the RM500 million syariah-compliant Commercialisation Innovation Fund (CIF), which is unique and specific for the so-called "edge-cutters" among small- and medium-sized enterprises (SMEs) in Malaysia, was smackingly on time!

Additionally, the prime minister also announced 42 innovation business opportunities offered through open tenders to the business fraternity and Malaysian investors.

Today, the word "innovation" has become so blase that even primary school kids store it in their vocabulary.

Unlike many years ago, when "invention" was only uttered by tertiary-level students or often heard only at conferences and forums.

Today, innovation has become a way of life, for everyone!

If it's not been for personalities like Steve Jobs, the father of innovation, we would not be able to watch free movies on tablets, communicate across the globe free-of-charge or even able to "draw something" at the tip of just one finger, despite the fact that we had flunked our art paper!

A report on Competitiveness and Innovative Capacity of the United States published early this year emphasised that innovation has been a key driver of US prosperity and competitiveness throughout their history.

Innovation-based economic growth has brought the US citizens higher paying, higher quality job as a well as improved health and quality of life.

On the local front, during the National SME Development Council Meeting in November last year, six high-impact programmes were announced to drive the SMEs in Malaysia to achieve an annual growth of 8.7 per cent by 2020.

The programmes are part of the 32 key initiatives that the government would undertake to ensure the SME growth target could be achieved under the second phase of the SME Masterplan (2012-2020).

One of the six programmes is the Inclusive Innovation Programme to enable the 40 per cent lowest income group (dubbed "B40") to benefit from innovation, leading to community transformation, including the micro enterprises in rural areas.

The CIF provides another boost for the 1-InnoCert recipients who are given wings to fly high and far!

The mechanism of funding for the new scheme is similar to the RM2 billion Syariah SME Funding Scheme (SSFS) launched earlier last month.

The financial scheme is designed to suit the financing needs of local companies with innovative products or services that are already at commercialisation stage.

The eligible companies will just need to swing by any of the participating Islamic financial institutions, such as Bank Muamalat Malaysia Bhd, Bank Islam Malaysia Bhd and RHB Islamic Bank Bhd.

Similar to SSFS, SMEs (including micro enterprises) who already have an existing syariah-compliant financing approved in 2012 are eligible to get the two per cent profit rebate, which will be borne by the government through SME Corp.

All the more reason for SMEs to jump on the bandwagon of Innovation now!

I personally would encourage SMEs to grab hold of this facility offered before the profit rebate period ends in December 2016.

Having said that, l am being reminded what the late Steve Jobs said: "But innovation comes from people meeting up in the hallways or calling each other at 10:30 at night with a new idea, or because they realised something that shoots holes in how we've been thinking about a problem."

For sure, we cannot all be Steve Jobs. But we cannot just be doing the same thing over and over again, yet, expecting different results!

After all, the only thing that is constant in the 21st century is CHANGE.

Datuk Hafsah Hashim is the chief executive officer of Small and Medium Enterprises Corporation Malaysia (SME Corp Malaysia)

No comments: