Small and medium enterprises or SMEs play a big role in the Malaysian economy. As of 2016, 97% of businesses are SMEs. They accounted for 36% of the country’s GDP. This rose by about 5% in 2017 and may go up by as much as 7.5% in 2018.
This is very impressive, and the government had a lot to do with it. It played a major role in the growth of SMEs through the SME Corporation Malaysia. If you are part of the SME community, you might want to know more. PlaTCOM Ventures Sdn Bhd shares some facts about the agency.
SME Corporation Malaysia came into being in 1996. The government thought it was a good idea to help SMEs grow and it was right. It wanted to make them globally competitive. It found ways to give SMEs what they needed to keep going. However, someone had to coordinate these efforts. It had to be an agency that knew how to manage SMEs.
Back then, the agency name was ‘Small and Medium Industries Development Corporation’. It officially became Small and Medium Enterprise Corporation Malaysia in 2009. Today, most people know it as SME Corporation Malaysia.
The programs of the agency are open to all SMEs. They just need to meet one of two conditions. One is the number of full-time employees and the other is sales. A business can ask for advice and assistance if it has fewer than five full-time employees or less than RM 300,000 in sales. It does not matter what sector it is in. These are micro enterprises and they make up 77% of all SMEs.
However, if a business has more than that, the numbers will depend on the sector. If it is in manufacturing, it is eligible only if it has between five and full-time employees. If it has more people than that, it can still qualify if it has between RM 300,000 and RM 50 million in sales. It is a different matter if it is not in the manufacturing sector.
For all other sectors, a business can only have between five and 10 full-time employees or between RM 300,000 and RM 3 million in sales to qualify.
SME Corp. Malaysia gives money to qualified SMEs and helps develop markets. It also offers training to help businesses grow. There are special programs for women and indigenous people. It even has a business advisory centre. The most ambitious program launched by the agency is the SME Masterplan 2012-2020. Called the game changer, this plan is a blueprint for success. It aims to help Malaysia achieve high-income status by the year 2020 through SME development.
Small and medium enterprises are an important part of the economy of most countries, including Malaysia. If you have a small business in this country, you can play a part in the SME Masterplan. You can get all the support you need from the SME Corporation Malaysia.