Friday, July 13, 2012

SME Masterplan proposes six high impact programmes

Source from (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2012/7/13/business/11655131&sec=business

Published: July 13, 2012
By LIZ LEE
lizlee@thestar.com.my

PUTRAJAYA: Launched by the Prime Minister yesterday, the SME Masterplan has proposed six high impact programmes, reinforced by other key initiatives to boost the small and medium enterprise sector within the next eight years.

The six programmes devised are the integration of business registration and licensing, the technology commercialisation platform, SME investment programme, going export programme, catalyst programme and inclusive innovation to empower the 40% of lowest income earners.

These programmes would enable the sector to achieve what is set out in the masterplan, based on a new SME development framework.

Under the new SME development framework, the masterplan targets to increase new businesses by 6% per year and the number of high growth and innovative firms by 10% per year while raising labour productivity from RM47,000 (2010) to RM91,000 and speed up the formalisation of businesses by reducing the informal sector to 15% gross national income from 31%.

The SME Masterplan also aims to expand SME's share in national employment and exports to 62% and 25% from the current 59% and 19%.

Prime Minister Datuk Seri Najib Tun Razak said “the plan will prioritise delivery through development of an evaluation mechanism and monitoring to reach the targeted goals”.

“For this purpose, the role and function of SME Corp needs to be strengthened to enable the agency to spearhead the plan,” he said during the launch.

The National SME Development Council also stated in the SME Masterplan 2012-2020 document that the most critical factor to ensure successful implementation of the SME Masterplan is the existence of a strong central agency to implement it.

“SME Corp would need to be given sufficient authority and resources and have a more active role in the budgetary decision on SME development,” it said.

Aside from the six programmes, there are also four thematic measures to promote resource pooling and shared services, create demand for SME products and services, reduce information asymmetry and build capacity and knowledge.

Specifically for the business environment in East Malaysia, the initiatives proposed also include improving connectivity and basic amenities, reviewing restrictive laws and policies and easing market access.

Other macro supportive measures are the completion of the integrated trade clearance and facilitation system, implementation of the Bankruptcy Law to give entrepreneurs a second chance, review of SME taxation policy and synchronisation measures on productivity enhancement technologies with other relevant labour policies.

The total of 32 initiatives which form an action plan for the sector are based on eight guiding principles which include consistency with national strategic direction, addressing market failures and information asymmetry, catalysing the development of private service providers and avoiding substituting private funds with public funds.

Other principles are the involvement of private sector, measurable results, getting the highest impact from funds and clear accountability and delineation of roles.

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