Govt, banks, NGOs can transform SMEs — CM
KOTA KINABALU: A congregation of the Sabah government, banks and NGOs is key to the transformation of Small Medium Enterprises (SMEs) during the tough times in the state, said Chief Minister Datuk Seri Mohd Shafie Apdal.
Shafie pointed out that SMEs are the backbone of the economy and make up 98.5% of business establishments in Malaysia.
He added that collectively, SMEs' contribution for employment is 66% and GDP is 37% in 2017 and the 2020 target is for SMEs' contribution to GDP to be increased to 41%.
“Many of the SMEs are facing tremendous constraints. They lack entrepreneurial skills, funding, knowledge and skills in management and marketing under the new economy,” said Shafie, whose keynote address was delivered by Assistant Minister to the Chief Minister Datuk Jimmy Wong Sze Phin, when launching the SME Sabah Business Seminar 2019 at the Ming Garden Hotel and Residences here, yesterday.
“I believe that we will be able to overcome these challenges when the government, banks and NGOs like SME Sabah come together and work hand-in-hand to transform SMEs into knowledgeable, competent, innovative and productive enterprises.
“As a step towards achieving this goal, SMEs should seize such types of opportunities to attend seminars to develop their knowledge and skills,” he added.
Shafie tasked the SMEs in Sabah to continue and fulfill the rest of its purposes, in particular to act as a medium between SMEs and the government, large companies, and foreign companies; and to strengthen economic ties between SMEs and provide opportunities for growth in the SME sector.
“We are committed to ensuring the prosperity of the people of Sabah by enhancing Sabah's economic growth and for this, the SME sector is going to a play key role in our efforts to boost industrialization and entrepreneurship in Sabah,” he said.
“SMEs are an integral part of our economy. They account for 99% of all enterprises in Singapore, employ seven out of 10 workers, and contribute to about half of our GDP. Hence, the importance of building a strong SME community cannot be overstated,” he added.
“Today, our SMEs operate in a challenging environment. Domestic resource constraints are mounting and the competition is unrelenting. Against this backdrop, the need to innovate and create new value, to grow the top line and not just improve operational efficiency, becomes even more of an imperative. One effective key way to do so is through brand development and market positioning,” he added.
Shafie mentioned that SME Sabah had held 63 internal events and 36 external events, which included three overseas events and two trade missions to China during its first year.
He added that SME Sabah had also printed two versions of SME Sabah Information booklet, which has been well received by SMEs, other chambers of commerce and the general public.
“I was informed that this SME Sabah Business Seminar will also be held in Sandakan on April 16, 2019 and in Tawau on April 17, 2019. SME Sabah's efforts to reach out to SMEs in Sandakan and Tawau are to be complimented and the government greatly supports such efforts,” said the Chief Minister.
“I understand that one of the six purposes of SME Sabah is to disseminate information to SMEs in respect of various financial and technical assistance offered by the government and financial institutions and thus the organization of this seminar,” he added.
Assistant Trade and Industry minister Ben Chong Chen Bin, representing Deputy Chief Minister Datuk Seri Panglima Wilfred Madius Tangau, SME Association of Malaysia National president Datuk Michael Kang Hua Keong, SME Sabah Permanent Honorary president, Malaysia-China Chamber of Commerce president cum SabahChina Chamber of Commerce president Datuk Frankie Liew Chun Tai, SME Sabah Honorary advisor Datuk Alan Ang Poon Seong, SME Sabah co-founder and president Foo Ngee Kee were at the launch too.