SME blueprint at coordination stage

Source from (The Star Online): http://biz.thestar.com.my/news/story.asp?file=/2012/9/17/business/12030294&sec=business

Published: September 17, 2012
BY DALJIT DHESI
daljit@thestar.com.my

KUALA LUMPUR: The Small Medium Enterprise Masterplan (2012-2020), which sets the roadmap and directions for the SMEs over the next eight years, is at the coordination, monitoring and evaluation stage to ensure its effective implementation, according to SME Corp Malaysia.

Its chief executive officer Datuk Hafsah Hashim said the agency was currently coordinating, monitoring and evaluating with more than 15 ministries and 60 agencies involved in SME development programmes.
“We have to coordinate with them to ensure there are no duplication of programmes in relation to the masterplan. As a mandated central coordinating agency for the masterplan, we need to ensure that the resources are well spent on SME development and to monitor the outcome of the programmes,'' she told StarBiz in an interview.

In terms of monitoring, SME Corp was in active engagement with the relevant ministries and agencies to ensure there were no constraints and stumbling blocks for the various programmes under the masterplan, she added.

At the same time, Hafsah said it would evaluate and track the performance of the above ministries and agencies so that they were alligned with the masterplan, which relate to increasing business formation, expanding the number of high growth and innovative firms, raise labour productivity and intensify formalisation.

On whether the targets set for SMEs under the plan were achievable, she said that although it would be challenging, the targets set were based on the characteristics of a developed nation status in view of Malaysia becoming one in 2020.

Under the masterplan, the contribution of SMEs to gross domestic product (GDP) would be raised to 41% in 2020 from 32% currently. Employment, on the other hand, is targeted to increase to 62% (from 59%) and exports to 25% (from 19%).

Asked on the response of the masterplan, Hafsah said it had been well received by SMEs and other relevant business chambers.

“We have been commended by SMEs and other relevant business chambers on the comprehensives programmes in the plan. It is the first global evidenced based SME masterplan based on data in consultation with the World Bank. The data is collected and compiled by the Department of Statistics census from 2004 to 2011.

“ Before launching the masterplan, we have consulted closely with SMEs and other relevant chambers of commerce to obtain their feedback to ensure the programmes embodied in the plan is comprehensive and provide for SMEs,” she added.

The six high-impact programmes under the master plan are on the integration of registration and licensing of business establishments, the Technology Commercialisation Platform (TCP) programme, SME Investment Programme (SIP), Going Export (GoEx) programme, Catalyst Programme, and Inclusive Innovation.

As for the upcoming budget 2013, Hafsah said she hopes the Government would provide incentives for medium sized companies to merge and become competitive to enhance domestic direct investments in the country. At the same time, SME Corp, she said also hoped that more incentives would be given to promote innovation among SMEs.