session 2 - small medium business in malaysia

8/18/2019 Session 2 - Small Medium Business in Malaysia

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SmallMediumBusiness inMalaysia

Session 2


2/20

Background on SMEDefnitions

• In 2005, the National SME DevelopmentCouncil (NSDC) approved the use of

common denitions of SMEs in themanufacturin!, manufacturin!"relatedservices, primar# a!riculture and servicessectors$

• %hese denitions are applied all'overnment Ministries and !enciesinvolve in SME development, as ell as the nancial institutions


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Background on SMEDefnitions

• %he use of common denitions for SMEsill

stren!then !overnment e*orts to create e*ectivepolicies and support pro!rammes for specictar!et

ma+e it easier to provide technical and nancial

assistance to SMEs allo for the identication of SMEs in the various

cate!ories and levels


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Coverage oDefnitions or

SMEs in Malaysia• or ider covera!e and applica&ilit#,denitions of SMEs ill &e &ased on to

criteria Num&er of emplo#ees nnual sales turnover

• %herefore, an enterprise ill &e classied

as an SME it meets either the speciednum&er of emplo#ees or annual salesturnover denition


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SMEs Sectors inMalaysia

• Manufacturin! " ph#sical or chemicaltransformation of materials or componentsinto ne products

• Services and other sectors ll services includin! distri&utive trade- hotels

and restaurants- &usiness, professional and IC%

services- private education and health-entertainment- nancial intermediation- andmanufacturin!"related services such as researchand development (./D), lo!istics, arehouse,en!ineerin! etc$


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SMEs Sectors inMalaysia

rimar# !riculture erennial crops (e$!$ ru&&er, oil palm, cocoa, pepper

etc$) and cash crops (e$!$ ve!eta&les, fruits etc$)

1ivestoc+ orestr# / lo!!in!

Marine shin! / uaculture

Construction

Infrastructure .esidential / non"residential

Special trade

Minin! / uarr#in!


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Detail Defnitionsor SME

Micro Small Medium

Manuacturing

Salesturnover

of less tanRM"00#000

4.full"time

emplo#ees

less tan 5

Sales turnoverfrom RM"00#000

to less tanRM$5 million

4.full"time

emplo#ees from 5to less tan !5

Sales turnoverfrom

RM$5 million toless tan RM50

million4.

full"timeemplo#ees from

!5 to less tan200

Serviceand %ter

Sales turnoverfrom RM"00#000to less tan RM"

million4.

Sales turnoverfrom

RM" million to

less tan RM20million


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&m'ortance o SMEs

• lthou!h the num&ers mi!ht &e loer inMala#sia, SMEs have the potential to

contri&ute su&stantiall# to the econom#and can provide a stron! foundation for the!roth of ne industries as ell asstren!thenin! e3istin! ones, for Mala#sias

future development


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(overnmentStrategies

• Constitutin! more than 668 of total&usiness esta&lishments in Mala#sia, it

clear that promotin! a via&le SME sector isessential in the nations stride toards&roadenin! the sources of !roth andsustainin! the !roth momentum

• %his is re:ected in the nationaldevelopment a!endas, namel# the Ninth Mala#sia lan (6M; 2009"20


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SME (rowt )nderte *int Malaysia

+lan• Durin! the 6M, the principal SME polic# isthe development of a competitive,

innovative and technolo!icall# stron! SMEsector that is a&le to contri&ute to thedomestic econom# and compete !lo&all#

• Strate!ies ill &e directed at acuirin!

technolo!ies to propel SMEs up the valuechain in manufacturin!, a!riculture andservice sectors

SME ( t ) d


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+lan• %hese strate!ies include %utsourcing > ro!rammes ill &e

implemented to nurture SMEs as .esearch andDevelopment (./D) partners$ Colla&orativeventures amon! Multinational Corporations(MNCs), 'overnment"lin+ed companies ('1Cs)and SMEs ill facilitate technolo!# transfer and

s+ills development and mar+etin!

&nter,frm linkages > Creatin! &usiness lin+s&eteen SMEs, '1Cs and MNCs ould ena&leSMEs to &e more competitive and &ecome

relia&le suppliers for !lo&al outsourcin! netor+s

SME ( t ) d


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+lan Entre'reneursi' 'rogrammes >

ro!rammes, includin! advisor# and outreachservices, ill &e e3panded to euip SMEs ith

ne improved mana!ement and &usinesspractices, methods in production, ualit#improvement, mar+etin! and distri&ution

-nowledge skills > urther development of

technical s+ills amon!st SMEs, especiall# in!eneratin! innovations and creatin! economicvalue from +noled!e application

SME ( t ) d


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+lan• Summar# of ndin!s of the rst uarter20


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uman Ca'italDevelo'ment

• 4nl# 7$68 of the total respondentscontri&uted to the Auman .esource

Development und (A.D) ith maBorit# ofthose ho contri&uted (578) utilied onl#up to 208 of their total contri&ution in20


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&nvestment &ssue

• &out 8 of the total respondents do notface an# pro&lems in investin!, hile

another =58 claimed that the# ere facin!diculties and 2


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1inancing and%ter ssistance

• &out half of the respondents haveoutstandin! nancin! facilities ith

nancial institutions• Most of the respondents (908) perceivedthat the avera!e interest rate or prot rate(Islamic &an+in!) char!ed nancial

institutions ere on par ith mar+et rates,ith the mean rate of 9$78 per annum andmedian of F8 per annum

• 4n avera!e, respondents too+ up to si3ee+s (2 da s) for nancial institutions to


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E3'orts o +roductsand Services

• Most of the respondents ere domesticall#"oriented ith onl#


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Thank You

session 2 - small medium business in malaysia

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