Monday, July 9, 2012

On new journey, guided by the Plan

Source From (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/8JOURNEY/Article/

Published: on 09 July 2012

IT has been a hectic two months for SME Corp Malaysia and at a personal level, I feel like I have just ended a roller-coaster ride, with quadruple loops!

We finally closed off the seven series of Jom Niaga, followed by SMIDEX, Asean-India SME Conference and SME Week at end of last month. After these roadshows, consumer fairs and trade exhibitions, we were pleasantly honoured with a visit from our new Chief Secretary to the Government, Datuk Seri Dr Ali Hamsa, to our new premises at Platinum Sentral, barely 10 days after he took office. It gives me great pleasure to announce that we were his first "Turun Padang" destination.

Going down memory lane, as the pioneer group, consisting of eleven employees, to start the Small and Medium Industries Development Corporation (SMIDEC), SME Corp Malaysia has indeed come long way since its inception in 1996. SMIDEC was then tasked to spur the development of small and medium industries (SMIs) through the provision of financial assistance, advisory services, market access and other support programmes, very much skewed towards the manufacturing sector.

A new chapter unfolded when the National SME Development Council (NSDC), the highest policy-making body on SME development chaired by the prime minister, was set up in 2004. Our mandate was heightened to spearhead the development of small and medium enterprises (SMEs) in Malaysia, formulating policies and coordinating implementation of development programmes across the 15 ministries and more than 60 agencies in all economic sectors.

Some of the achievements made under the NSDC included standardising the SME definition across the nation, enhancing access to financing, financial restructuring and advisory services, information, capacity building and marketing coordination, as well as instituting a comprehensive SME database to monitor the progress of SMEs across all economic sectors.

It was only in 2009 that SMIDEC was rebranded to SME Corp Malaysia.

Looking back, before the National SME Development Council (NSDC) was set up in 2004, there was no specific policy or framework for the overall development of SMEs in our nation. However, in the recent years, we have made progress in that the growth from our SMEs has consistently outperformed the average economic growth of the overall gross national products (GDP). While our GDP is growing at an average of 4.9 per cent per annum, the SMEs were growing at a rate of 6.8 per cent per annum.

It is indeed a phenomenal progress, considering it was only eight short years that policies and programmes were coordinated among ministries and agencies, with the aim of streamlining efforts, optimising resources, reducing duplication as well as guiding stakeholders to ensure greater effectiveness of the delivery of government programmes. Policy initiatives introduced by NSDC have yielded positive results and were the key factors for the higher growth trajectory of SMEs between 2004 and 2010.

Yet, exciting times have not come to a halt and we are now on the road to another transformational journey that will bring us into a more intense phase. The SME Masterplan 2012-2020 will be the growth accelerator for SMEs to achieve the desired 41 per cent contribution to the GDP, 62 per cent in employment share and 25 per cent of exports by 2020.

Considered as a "living document", the SME Masterplan focuses on creating an enabling business ecosystem to accelerate and expedite the growth of SMEs. The plan lays out policy direction of SMEs across all economic sectors, including specific strategic areas, through the year 2020 in line with the aspirations of becoming a high-income nation.

A total of 32 initiatives comprising six high-impact programmes have been identified under the SME Masterplan. These programmes will be implemented by a lead ministry/agency and coordinated by SME Corp Malaysia to ensure that these programmes, along with the other complementary initiatives, will achieve the intended goals, measured through an outcome-based approach.

Consultations with the various ministries and agencies have commenced and the stakeholders have been engaged to ensure that these programmes are rolled out in stages and more importantly, with minimal hiccups.


At the same time, the role and capacity of SME Corp Malaysia will be strengthened, elevated and empowered to take on this new challenging mandate. On Thursday, the 13th NSDC meeting convenes at Putrajaya once again and the nation can expect more bold decisions to be announced. Business might just not be as usual again. And perhaps drastic changes will be embraced for a more significant growth of Malaysian SMEs, and for them to move forward in a well-coordinated direction.

It looks like Tan Sri Idris Jala is not the only one strumming the transformational blues. Now, SME Corp is also dancing to the waltz of transformation, but it's all in the name of building the nation and realising the dreams of Malaysians as we move towards becoming a high-income economy.

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

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