SMEs should use existing capital to increase productivity

KUALA LUMPUR: Small-and-medium enterprises (SMEs) should focus their business model and strategies on utilising existing capital more effectively to increase productivity, says SMI Association of Malaysia president Teh Kee Sin.

Source from (Bernama): http://www.bernama.com/bernama/v7/bu/newsbusiness.php?id=964618
Published: July 21, 2013


HONOURING SMES: Deputy Minister Domestic Trade, Cooperatives and Consumerism, Datuk Ahmad Bashah Md Hanipah (centre) with President MICG, Tan Sri Megat Najmuddin Khas (second, left) and Teh (second, right) after launching the SME Recognition Award 2013 here yesterday. The SME Recognition Award is organised by SMI Association of Malaysia to honor SMEs in Malaysia at their best based on competitive strength and will be bestowed through 17 categories. — Bernama photo

He said with the impending introduction of minimum wages, expected to take effect early next year, SMEs must stimulate innovation and improve workforce skills.

SMEs are the backbone of the Malaysian economy comprising more than 97.3 per cent of business establishments throughout the nation from manufacturing to services and agriculture. “If we do not act quickly and effectively, the changing economic environment will dilute our profit margin due to rising manufacturing cost.

“As a result, we may lose our competitiveness  and wind up our businesses,” he told a press conference to announce this year’s SME Recognition Award (Smera) for new, up-and coming as well as established SMEs.

Nomination for the award is now open and will close on September 15, 2013 and the award presentation is scheduled for December 13.

This year, 89 awards in 17 categories including the new ‘SME Occupational Safety Health Award” will be presented to outstanding SMEs in Malaysia based on their competitive strengths.

Teh said the Smera would be a gateway for winners to be listed on Bursa Malaysia based on their outstanding performance.

There are about 30 Smera award SME companies which were listed on Bursa Malaysia.

“We are proud to have been a public listing pre-assessment gateway for our past winners,” he said.
Nearly a thousand SME companies have won the awards, gaining significant benefits as a result of their participation.

“This award helps to enhance the brand image of the winners, gives them publicity, recognition from banks while easing their accessibility to financing facilities,” Teh added. — Bernama