SMEs urged to raise productivity, push limits to hit contribution target

KUALA LUMPUR: Small and medium enterprises (SMEs) must increase productivity to achieve the sector’s target of 41 per cent contribution to the gross domestic product (GDP) by 2020.

Prime Minister Datuk Seri Najib Razak said the target was achievable but the sector must push the limits.

“Although the sectoral growth of SMEs is impressive, we need to grow at a rate of eight per cent to achieve the target of 41 per cent.

“If we are able to do so, SMEs will continue being the driving force of the economy,” he said during a townhall session at the SME Annual Showcase and SME Conference 2017, here, yesterday.

SME Corp chief executive officer Datuk Dr Hafsah Hashim, who hosted the session, said the contribution of SMEs to GDP currently stood at 36.9 per cent.

Najib also elaborated on the reasons why he allocated RM22.2 billion to the sector in the 2018 Budget and his aspirations for the recently-launched Digital Free Trade Zone (DFTZ).

He said the budget for SMEs must be used for expansion, start-ups, export and automation in relation to the Industry 4.0 Revolution.

He said productivity must increase in tandem with other developments.

Najib also said he aimed for 10,000 SMEs to be involved in the DFTZ.