SME sector robust amid growth of IR4.0
KUALA LUMPUR: Malaysian small and medium enterprises (SMEs) remained robust in 2018 as the sector braced for the adoption of Industrial Revolution 4.0 (IR4.0), with strong and encouraging support from the government.
While the performance of the sector is also affected by global volatility which has resulted in a weakening ringgit and in turn a rising cost of business, the situation is seen as temporary.
The business environment for SMEs continued to be supported by the government and corporate companies with various initiatives put in place to help SMEs promote their products and services locally and globally.
SMECorporationMalaysia(SME Corp), which has been tasked with coordinating and implementing SME development, had introduced various programmes and activities to spur growth for the sector.
In 2018, a total of 158 SME development programmes were being implemented with a total financial commitment of RM14.3 billion.
Among others, the agency spent RM217.33 million to implement 28 innovation and technologyrelated programmes, benefiting 37,429 SMEs under the innovation and technology adoption initiative in its annual SME Integrated Plan of Action (SMEIPA).
Based on the SMEIPA for 2018, a total of 151 SME development programmes were planned to benefit 613,576 SMEs.
In further enhancing the technology ecosystem, SME Corp had in June collaborated with Huawei Malaysia to sponsor a study on 2,033 SMEs across regions and sectors including services, manufacturing, construction and agriculture, to explore the state of adoption of information and communications technology.
As technology is innovating quickly, it was noted that SMEs found it difficult to increase their competitive edge especially in their readiness to adopt IR4.0.
Hence, they need to improvise strategies for efficiency to stay relevant in the business and serve the customers. — Bernama