elevating smes to the next level (malaysia

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Introduction :

Current SME Status

• SMEs account for a large proportion of businesses in Malaysia: - 99.2% of establishments (548,267)- Majority are micro enterprises, with 5 workers and less

Important domestic source of growth

Foundation & support in supply chain through forward & backward linkages

Balanced growth

Strengthen resilience of the nation's economy

Provide support to growth of new & existing areas

Promote private sector-led growth

Source: Census of Establishments & Enterprises 2005

SMEs are the Backbone of the Economy

SME growth outperformed overall economy for the peri od 2005 – 2009 mainly due to supporting policy initiatives such as:

• Establishment of NSDC in 2004; and• Other supportive policies (PEMUDAH, Visit Malaysia Year, Government

salary increment, RMK9 projects)

SME Contribution to:

GDP 31.2%

Employment 56.4%

Exports 19%

GDP Annual Growth (2000 price)

GD

P &

SM

E G

row

th

Performance of SMEs Outpaced the Overall Economy

Services(86.6 %)

Agriculture(6.2 %)

Manufacturing(7.2 %)

Source: Census of Establishments & Enterprises 2005

Wholesale & Retail (55.5%)Restaurant & Hotel (15.2%)Transport & Communication (6.5%)

Plantation and horticulture (65.6%)Fishery and its services activities (20.8%)Poultry farming (7%)

Textiles & Apparels (23.4%)Food & Beverages (15%)Metal & metal products (13%)

• Services: 87% share, largest subsector is distribut ive trade• Manufacturing: 7% share, mainly in textiles/apparel s and F&B industries• Agriculture: 6% share, plantation/horticulture and fishing

Currently, SMEs are Mainly in the Services Sector

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Major

Challenges Faced by SMEs

Limited access to advisory services

Limited marketing & promotion strategies

Limited access to domestic & global markets

Management and technology capability constraint

Low value add and not competitive

Inadequate training

Limited capability in R&D and technology

Difficulty in retaining manpower

Difficulty in obtaining financing

Lack of international certification for export

Limited use of e-commerce and internet marketing

Major Challenges Faced by SMEs

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Strategies and

Opportunities on

SME Development

– Chaired by the Hon. Prime Minister, with 15 Ministers– Secretariat: SME Corp. Malaysia (w.e.f. 1 August 2008,

previously Central Bank of Malaysia)

– Formulates broad policies and strategies and provides direction for comprehensive development of SMEs across all sectors

– Oversees coordination of and ensures effectiveness in policy implementation

– Strengthening enabling infrastructure– Building capacity and capability of SMEs– Enhancing access to financing

Highest Policy-making Body to Chart SME Development

Roles & Responsibilities

3 Key Strategic Thrusts

National SME Development Council

Strategic Goals in SME Development

Increase Business Formation – Facilitate Business dynamism

Intensify Formalisation – Incentivise innovation, growth and promote fair competition

Raise Productivity – boost income and raise standard of living

Expand Number of High Growth Firms– substantial share

of employment, having the scale to be globally competitive

Focus Areas to Support Strategic Goals

Technology and

Innovation

Legal and Regulatory

Environment

Human Capital

Infrastructure

Market Access

Financing

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Development

Programmes for SMEs

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Towards producing national, regional and global champions

ONE REFERRAL CENTRE

Business Advisory

Info Centre

Link of Ministries/

Agencies

Pocket Talk

Resource Centre

Product Gallery

Virtual ORC

SME Registry Membership

One Referral Centre (ORC)

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BUSINESS ADVISORY

- Business Counselor

- SEAP Experts

INFO CENTRE

Centralized Call Centre consists of :

Info Line, Info Email, General Line

ORC LINK

Referral Counter for Ministries, Agencies, Banks & DFIs

RESOURCE CENTRE

- Library

- Business Centre : Photostat, printing, etc

- Touch screen kiosk + Internet Kiosk


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POCKET TALK

- Talk from SME Corp.

-Talk from other Ministries, Agencies, Banks, DFIs

- Company presentation

- Book Launch/ Review

PRODUCT GALLERY

Showcase of products by Industry/sector cluster

- Thematic showcase

- Events/ programme

VIRTUAL ORC

- SME Corp. Corporate Website

- SME Info Portal

SME REGISTRY MEMBERSHIP

- Membership Card

- Enjoy Benefits : current updates & Invitation for events & programmes


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SCORE is a diagnostic tool used to rate and

enhance competitiveness of SMEs based on

their performance and capabilities

SME Competitive Rating to

Enhancement (SCORE)

About SCORE

Identifies strengths and weaknesses of SMEs in orde r to recommend measures for improvements

OBJECTIVE

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Facilitate linkages of potential SMEs with large

companies / MNCs

Link export-ready companies to MATRADE

• a comprehensive diagnostic tool to rate and enhance competitiveness of SMEs based on their performances and capabilities.

• developed in August 2007.

What is SCORE?

• identify strengths and weaknesses for improvements; and

• facilitate linkages.Function

• Business Performance

• Financial Capability

• Management Capability

• Production Capability

Parameter

• 0 – 2 Stars : Very basic business operation

• 3 – 5 Stars : Some degree of sophistication and can be groomed for export

Characteristics

• Retail & Distributive Trade (PUNB)

• Construction (CIDB)

• ICT (MDeC)

Implementation Channel (Existing

Collaborators)

Example of Radar Diagram for 3-Star company

Analysis: Weak in financial capability

Assistance: Require financial management training

• Maintenance, Repair &

Overhaul (MINDEF)

• Professional Services

(PSDC)

• Technical capability

• Quality System

• Innovation

BACKGROUND OF SCORE

SCORE Parameters

The capability

and performance

are measured

based on 7

parameters that

vary across

sectors

One of the initiatives under the SME-Brand Development

Programme, in collaboration with SIRIM QAS International

Sdn. Bhd. to enhance the visibility of Malaysia products

and services in both local and international markets

The National Mark of

Malaysian Brand

The National Mark of Malaysian Brand

Pre-Requisite Criteria

• Business incorporated / registered

• Operating from legal premises

• A minimum 3-STAR rating under SME Certified ISO or equivalent

• Own a Registered Brand

The National Mark of Malaysian Brand

Benefits

of the

Programme

Benefits

of the

Programme

Qualifying SMEs would

have privileged

admittance to SME

Corp. Malaysia

programmes such as

BAP, Brand

Entrepreneurship

conference, SMIDEX and

many more

Qualifying SMEs would

have privileged

admittance to SME

Corp. Malaysia

programmes such as

BAP, Brand

Entrepreneurship

conference, SMIDEX and

many more

Privileged Media

Coverage

Privileged Media

Coverage

Facilitate companies’

access to on-going

local and

international trade

promotion and A&P

activities by

MATRADE

Facilitate companies’

access to on-going

local and

international trade

promotion and A&P

activities by

MATRADE

Invitation to specific

training

opportunities

organised by SME

Corp. Malaysia and

its partners

Invitation to specific

training

opportunities

organised by SME

Corp. Malaysia and

its partners

Special access

passes to MICCI-

SME Corp.

Malaysia

mentoring

programmes

Special access

passes to MICCI-

SME Corp.

Malaysia

mentoring

programmes

SME Corp. Malaysia in collaboration with Limkokwing University of

Creative Technology (LUCT) has established the Branding innovation

Centre to promote branding to the SMEs in Malaysia and to assist

them in building and developing their own brands of products and

services as well as to enhance SME products packaging at this Centre

Branding Innovation

Centre (BIC)

Branding Innovation Centre (BIC)

To provide awareness across the country on the importance of innovation branding and packaging on meeting global market needs

• A bus has been allocated which operates as the Mobile Gallery

to cover the four regions in

peninsular Malaysia namely

North, South, Central and East.

• It will be making trips to designated locations to hold

workshops and training

sessions for SMEs with branding

related collaborators such as

SIRIM, MyIPO and FMM

Branding and Packaging Mobile Gallery

Branding Innovation Centre (BIC)

A programme to recognise and certify

innovative enterprises and SMEs

Innovation Certification for

Enterprise Rating and

Transformation (1-InnoCERT)

1-InnoCERT

Benefits of

the

Programme

Benefits of

the

Programme

Eligible to

participate in

the Annual SME

Innovation

Award

Eligible to

participate in

the Annual SME

Innovation

Award

Facilitated

access to

financial

incentives and

wider market

Facilitated

access to

financial

incentives and

wider market Eligible for

business

coaching

Eligible for

business

coaching

To foster and support innovative SMEs and enterprises to be globally innovative and competitive players

ITechnology innovation

ability

IIITechnology innovation

management ability

SMEs will be assessed using 4 main criteria:

IITechnology

commercializationability

IVTechnology innovation

result

1-InnoCERT

On-Line Assessment

On-Site Audit

1-InnoCERT Committee Approval

Award of Certification

Fast Track Program

Applicant conducts a self-audit using the On-Line Assessment Software

1-InnoCERT Auditor conducts on-site audit to verify innovativeness of company

The 1-InnoCERT Committee (Chaired by MIGHT) will provide final approval for certification

Approved 1-InnoCERT SMEs be awarded with 1-InnoCERT Certification

Provisions of Incentives & Exemptions including accelerated processing. Pre-packaged with 1-InnoCERT Certificate issuance.

1-InnoCERT Mechanism

Click To Do Online Innovation Self-Assessment at

MIGHT website http://www.might.org.my

On-line Innovation Self Assessment

To provide short-term courses under 41 training centres

appointed by SME Corporation Malaysia

Skills Upgrading

Programme

Skills Upgrading Programme

Objectives

To enhance skills and capabilities of SMEs

in hard and soft skills

Benefits

To enhance the skills of the workforce in order to

increase the efficiency, productivity,

professionalism and capabilities of SMEs

Business Matching

In accelerating SMEs to be resilient and competitive in the

global supply chain, Business Matching through the Industrial

Linkage Programme (ILP) is implemented to promote

competitive SMEs

Business Matching

To develop competitive and innovative SMEs

OBJECTIVE

To widen the business opportunity of SMEs in supplying products and services to large companies and Multinational Companies (MNCs)

To encourage SMEs business networking with MNCs and GLCs

Business Matching

BenefitsBenefits

SMEs will be able

to increase

visibility among

potential business

partners, including

large companies,

MNCs and GLCs

SMEs will be able

to increase

visibility among

potential business

partners, including

large companies,

MNCs and GLCs

Potential to boost

sales and business

opportunity

Potential to boost

sales and business

opportunitySMEs will increase

understanding on

the requirements

and criteria

needed to supply

to MNCs and GLCs

SMEs will increase

understanding on

the requirements

and criteria

needed to supply

to MNCs and GLCs

SME Expert Advisory Panel

(SEAP)

3-Phase Programme that provides on-site assistance

and transfering technology as well as technical know-

how to the SMEs by the industry experts

Benefits

of the

Programme

Benefits

of the

Programme

SMEs are able to

receive advice and

guidance from the

industry experts

SMEs are able to

receive advice and

guidance from the

industry experts

The essence of the

remedial measures

is to improve

business practices,

production and

productivity

The essence of the

remedial measures

is to improve

business practices,

production and

productivity

Undertake diagnostic audit on SMEs to identify weaknesses and strengths for them to undertake remedial measures to enhance their capabilities

SEAP

SEAP

FOCUS OF IMPROVEMENT

•Technology improvement•Production capacity

•Engineering•Automation

•Machinery equipment•Materials technology•Process Improvement

•Designing•Financial Management•International Standards

•Productivity Improvement•Maintenance

•Label & Packaging•Quality Assurance

•ICT and Computerisation•Business system e.g. logistic, inventory•Lean Production System Management

Virtual SME Info Centre

SMECORP STATUS

[Ref. No]SMECORP BORANG

[alamat emel]

One Referral CentreBusiness Advisory

Services (BAS)

LAMAN WEBwww.smecorp.gov.my

INFOLINE1-300-88-1801

SMS for SMEs Info& Other Information

Send to 15888

Find us on Facebook SME Corp. Malaysia

THANK YOU

www.smeinfo.com.my

elevating smes to the next level (malaysia

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