Budget allocation to boost SME value-added by RM3.8 billion

KUALA LUMPUR: The estimated RM17.94 billion allocation in the 2019 Budget for small and mediumsized enterprise (SME) development is expected to generate an additional RM3.8 billion of SME value-added next year, according to an analysis by SME Corporation Malaysia (SME Corp).

This is an increase of 0.3 percentage point in the share of SME Gross Domestic Product (GDP) to total GDP, the agency said in a statement.

SME Corp, which comes under the International Trade and Industry Ministry, coordinates the implementation of SME development programmes across all related ministries and agencies.

A total of RM17.94 billion has been earmarked for SME development in 2019 under the latest budget’s Third Focus: To Foster an Entrepreneurial Economy.

The key initiatives include financing, Industry 4.0, export, tourism, agriculture, entrepreneurship, human capital development and incentives.

According to the SME Annual Report 2017/18 released by SME Corp, SMEs contributed RM435.1 billion to the economy last year, with a higher GDP growth of 7.2 per cent against 5.2 per cent in 2016.

As a result, the contribution of SMEs to the GDP stood at 37.1 per cent in 2017, with overall employment at 66 per cent and total exports at 17.3 per cent. — Bernama