ECONOMIC TRANSFORMATION, EMPLOYMENT & GROWTH

EMPOWERING INDIAN SMES IN MALAYSIA TOWARDS

Small and Medium businesses are an integral part of a vibrant, healthy economy. Business has an interest not just in their share of the marketplace, but in the marketplace’s overall health. Small and Medium business success contributes to an environment in which all businesses can succeed

Small and Medium Enterprises (SMEs) form the backbone of Malaysia’s economy. Ninety-seven percent of business establishments in Malaysia are Small and Medium Enterprises (SMEs). These businesses are responsible for nearly 36 per cent of the country’s GDP, 65 per cent of the country’s employment, and nearly 18 per cent of Malaysia’s exports.

SMEs have been at the core of Malaysia’s economic transformation since the 1990s to an upper-middle income nation and are an important driver of employment and growth.

Supporting entrepreneurship, especially small and medium sized entrepreneurs, is critical to driving economic growth and creating inclusive and sustainable economies. However, in order to be successful, entrepreneurs also need to be connected to a larger ecosystem that can foster their growth.

Having realised the importance of small and medium scale enterprises in the economic growth and development of any nation, governments monetary and fiscal policies should always aim at encouraging small and medium scale enterprises so that the existing ones can survive and grow while many prospective operators will find it easy to startup.

The enabling environment by government to small and medium scale enterprises should always be complete in any particular circumstance. In other words transport, electricity, water, communication; educational infrastructure, should be available or adequate in all times on any small and medium scale enterprises empowerment for sustainable development.

There is no doubt that small and medium scale enterprises constitute the real fabric of a nation‘s economy. Ever since the country‘s (political) independence, this has been so, and even today the entire economic system is exclusively held in place by small and medium scale enterprises.

However, the environment in which this sector operates is both challenging and rewarding. The fact that SMEs forms the engine for industrial growth and development in the economy recommends efforts that could make them strive.

Lack of awareness of various forms of government assistance to small and medium scale entrepreneurs. Many existing small and medium scale entrepreneurs and prospective ones lack the information and knowledge about government empowerment due to government’s poor or absence of enlightenment about their empowerment programme or services.

Increased awareness an enlightenment of the public on sources of government financing and her agencies to both existing and prospective small and medium scale enterprises. This will serve as a stimulus to those who have been nursing business ideas without knowing how to practically take-off.

There are 907,065 establishments of SMEs in Malaysia. SME contributed 36.6 per cent of Malaysia’s GDP in 2016.

By 2020, Malaysia aims to push SMEs’ contribution of GDP to 41 per cent and the share of the country’s exports from SMEs to 23 per cent.

Malaysia’s transition to a high-income economy will highly depend on SMEs’ contribution to GDP growth.

An important element to boosting SMEs in Malaysia is to understand them. The surprising results of the country’s first-ofits-kind census in 2004 showed that a vast majority of SMEs are in the services sector, while only about 7 per cent were in the manufacturing sector and even less in agriculture.

To ensure continued SME growth and contribution to Malaysia’s economy, over the next few years, Malaysia has to encourage the private sector to adapt to changes, have a pool of skilled personnel who can be absorbed in the market and get better at closing the productivity gap to be globally competitive.

Enhance cooperation and coordination of programmes to ensure effective implementation of SME development policies and action plans. Strengthen the role of the private sector in supporting the overall development of SMEs

Malaysian Indian Hope Foundation together with The Foundation of Malaysian Institute of Export and International Trade are jointly organising, Malaysian Indian Business Forum 2018 as the first ever Indian SMEs Centre point. It is an initiative powered by both the Foundations driven by need for Indian SMEs in Malaysian conglomerate among business associates.

The key objective of this forum is to recognise and acknowledge the existence of Indian SMEs contributions to the country’s economic growth. The other objectives are to discuss business opportunities available for the Malaysian Indian SMEs, to update on the financial assistance and grants provided by the government, and to provide networking opportunities.

The Forum expects more than 500 delegates to participate, comprising of Indian SME business owners, CEOs, Senior and Middle Managers and Entrepreneurs.