SMEs urged to look outward for growth
The bold steps taken by the Platinum Business Awards organising committee to increase the global presence of the awards by engaging Asean SMEs and established foreign enterprises in Malaysia to take part is a timely move amidst the fast changing business dynamics at both regional and global levels, said Chief Minister Datuk Seri Shafie Apdal .
In a speech presented on his behalf by Deputy Chief Minister Datuk Madius Tangau at the launch of the Platinum Business Awards 2018 roadshow here, Shafie pointed out that as Malaysia domestic demand is shrinking, SMEs should now look outward for growth and explore new platforms to promote its products and services as well as opportunities to be integrated in the regional or global value chains.
He was also of the opinion that there was an urgent need for SMEs to adopt cutting edge technologies and to continue to innovate in pursuit of excellence.
“In the face of evolving challenges in the economic environment, SMEs are required to consider re-modelling their businesses and find new markets and avenues of growth. The age of Digital Economy has brought unprecedented opportunities and challenges to Malaysia economy, especially to the SME sector which forms nearly 99 per cent of the businesses in the country.
“SMEs are strategically placed to take the most advantage of digital disruption as they are more agile and flexible in meeting the needs of the new economy,” said Shafie who lamented that unfortunately only a small number of SMSe have seriously embarked on the path of transformation and many of them are facing tremendous constraints on the journey of transformation.
The SMEs, he said, lacked entrepreneurial skills, low capability in adopting high-end technology, limited funding, lack of knowledge and skills in management and marketing under the new economy.
He believes that the challenges can be overcome when the government and SME community come together and work hand in hand to transform SMEs into a competent, innovative and technological driven enterprise.
“In order to achieve this goal, there is no short cut but to develop culture of learning, strengthen capacity building of SMEs in order to embrace disruptive change and catalyze success,” said Shafie who is also Finance Minister.
He pointed out that the country is at the beginning of a new chapter with new state and federal governments whose leadership is committed to inclusive approach to growth.
“We are committed to ensuring the prosperity of the people by enhancing the state’s economic growth, and for this, SME sector is going to play a key role in our effort to boost industrialization and entrepreneurship in Sabah,” said Shafie and announced a RM50,000 allocation to the Small and Medium Enterprise Association of Sabah (SME Sabah) for its activities.