Post on 07-Jul-2018
8/18/2019 Session 2 - Small Medium Business in Malaysia
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SmallMediumBusiness inMalaysia
Session 2
8/18/2019 Session 2 - Small Medium Business in Malaysia
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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8/18/2019 Session 2 - Small Medium Business in Malaysia
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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$5 million toless tan RM50
million4.
full"timeemplo#ees from
!5 to less tan200
Serviceand %ter
Sales turnoverfrom RM"00#000to less tan RM"
million4.
Sales turnoverfrom
RM" million to
less tan RM20million
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8/18/2019 Session 2 - Small Medium Business in Malaysia
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&m'ortance o SMEs
• lthou!h the num&ers mi!ht &e loer inMala#sia, SMEs have the potential to
contri&ute su&stantiall# to the econom#and can provide a stron! foundation for the!roth of ne industries as ell asstren!thenin! e3istin! ones, for Mala#sias
future development
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(overnmentStrategies
• Constitutin! more than 668 of total&usiness esta&lishments in Mala#sia, it
clear that promotin! a via&le SME sector isessential in the nations stride toards&roadenin! the sources of !roth andsustainin! the !roth momentum
• %his is re:ected in the nationaldevelopment a!endas, namel# the Ninth Mala#sia lan (6M; 2009"20
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SME (rowt )nderte *int Malaysia
+lan• Durin! the 6M, the principal SME polic# isthe development of a competitive,
innovative and technolo!icall# stron! SMEsector that is a&le to contri&ute to thedomestic econom# and compete !lo&all#
• Strate!ies ill &e directed at acuirin!
technolo!ies to propel SMEs up the valuechain in manufacturin!, a!riculture andservice sectors
SME ( t ) d
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SME (rowt )nderte *int Malaysia
+lan• %hese strate!ies include %utsourcing > ro!rammes ill &e
implemented to nurture SMEs as .esearch andDevelopment (./D) partners$ 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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SME (rowt )nderte *int Malaysia
+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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SME (rowt )nderte *int Malaysia
+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