SMEs’ GDP to grow by between 6.5 to 7.5 per cent, says Prime Minister

KUALA LUMPUR: The small and medium enterprises’ ( SMEs) gross domestic product ( GDP) is expected to grow by between 6.5 per cent and 7.5 per cent next year following the higher allocation for the sector in Budget 2018.

Prime Minister Datuk Seri Najib Tun Razak said the government has al located RM22.2 billion to implement various programmes for SMEs, a significant increase compared to the previous year.

“This constant support is crucial to developing SMEs through provision of financing credit, capital guarantee schemes, easy lending, grant schemes and also providing tax exemptions for capital markets covering various activities and products,” he said in his welcoming speech at the 23rd National Small and Medium Enterprise Development Council meeting yesterday.

For this year, SMEs’ GDP is estimated to register a growth of 5.1 per cent due to good performance in trading activity.

In addition, Najib also announced that so far, 1,997 SMEs were ready to export through Malaysia’s Digital Free Trade Zone ( DFTZ) platform.

Earlier, 1,500 SMEs are expected to be involved in the first phase of DFTZ, a platform that will stimulate SMEs in terms of export growth and create jobs.

Through the creation of the world’s first DFTZ, SME exports are expected to increase by US$ 38 billion ( US$ 1= RM4.10) and generate 60,000 new jobs by 2025.

Meanwhile, the 23rd council meeting will discuss three main papers – 2016 Economic Census: SME Performance; SME Development Initiatives under Budget 2018 ; and, Coordination of Human Capital Development Programme. — Bernama