SME Corp working with World Bank experts

KUALA LUMPUR: SME Corp Malaysia, together with the lead ministries and government agencies are working closely with the World Bank experts in designing high-impact programmes for the small and medium enterprises (SMEs) under the SME Masterplan (2012-2020).

Source from (Business Times): http://www.btimes.com.my/Current_News/BTIMES/articles/20130129001035/Article/
Published: January 29, 2013

SME Corp chief executive officer Datuk Hafsah Hashim said the government prioritises SME development as shown in the initial fund of RM30 million to implement the SME Masterplan this year.

The masterplan focuses six high-impact programmes that would encourage productivity and innovation-led growth among the SMEs.

Hafsah said right after the masterplan was launched in July last year, SME Corp has started engaging the lead ministries and agencies which have been identified for the high impact programmes.

At the same time, she said as a central coordinating agency, SME Corp will work with the relevant ministries and agencies to track the progress of SME initiatives under the 2013 Budget.

“Overall, the 2013 Budget has been very positive for SMEs, with measures for the development of SMEs over the short to long term… to promote innovative companies, bumiputera entrepreneurs, microenterprises, women and rural entrepreneurs in all economic sectors and strategic areas,” she said in an email interview with Business Times.

Hafsah said the 2013 Budget, unveiled by Prime Minister Datuk Seri Najib Razak last September, includes nine financing schemes, five fiscal measures and three social safety net measures for the SMEs.

These incentives are expected not only to benefit SMEs directly, but also will contribute towards building a conducive ecosystem for the development and empowerment of local SMEs, she said.

“The RM1 billion fund under the SME Development Scheme by SME Bank will enhance access to financing and provide the infrastructure for SMEs via the industrial areas, which in turn are expected to help accelerate the growth of SMEs,” she said.

Hafsah also said the incentives and funding under the budget would help overcome two main challenges faced by local SMEs, namely access to financing and capacity building in information technology and technological knowhow.

She said tax exemption on venture capital investment by angel investors in a venture capital company will serve towards raising the capitalisation of the venture capital industry.