Elevating SMEs to the Next Level (Malaysia
Transcript of Elevating SMEs to the Next Level (Malaysia
1
2
Introduction :
Current SME Status
• SMEs account for a large proportion of businesses in Malaysia: - 99.2% of establishments (548,267)- Majority are micro enterprises, with 5 workers and less
Important domestic source of growth
Foundation & support in supply chain through forward & backward linkages
Balanced growth
Strengthen resilience of the nation's economy
Provide support to growth of new & existing areas
Promote private sector-led growth
Source: Census of Establishments & Enterprises 2005
SMEs are the Backbone of the Economy
SME growth outperformed overall economy for the peri od 2005 – 2009 mainly due to supporting policy initiatives such as:
• Establishment of NSDC in 2004; and• Other supportive policies (PEMUDAH, Visit Malaysia Year, Government
salary increment, RMK9 projects)
SME Contribution to:
GDP 31.2%
Employment 56.4%
Exports 19%
GDP Annual Growth (2000 price)
GD
P &
SM
E G
row
th
Performance of SMEs Outpaced the Overall Economy
Services(86.6 %)
Agriculture(6.2 %)
Manufacturing(7.2 %)
Source: Census of Establishments & Enterprises 2005
Wholesale & Retail (55.5%)Restaurant & Hotel (15.2%)Transport & Communication (6.5%)
Plantation and horticulture (65.6%)Fishery and its services activities (20.8%)Poultry farming (7%)
Textiles & Apparels (23.4%)Food & Beverages (15%)Metal & metal products (13%)
• Services: 87% share, largest subsector is distribut ive trade• Manufacturing: 7% share, mainly in textiles/apparel s and F&B industries• Agriculture: 6% share, plantation/horticulture and fishing
Currently, SMEs are Mainly in the Services Sector
6
Major
Challenges Faced by SMEs
Limited access to advisory services
Limited marketing & promotion strategies
Limited access to domestic & global markets
Management and technology capability constraint
Low value add and not competitive
Inadequate training
Limited capability in R&D and technology
Difficulty in retaining manpower
Difficulty in obtaining financing
Lack of international certification for export
Limited use of e-commerce and internet marketing
Major Challenges Faced by SMEs
8
Strategies and
Opportunities on
SME Development
– Chaired by the Hon. Prime Minister, with 15 Ministers– Secretariat: SME Corp. Malaysia (w.e.f. 1 August 2008,
previously Central Bank of Malaysia)
– Formulates broad policies and strategies and provides direction for comprehensive development of SMEs across all sectors
– Oversees coordination of and ensures effectiveness in policy implementation
– Strengthening enabling infrastructure– Building capacity and capability of SMEs– Enhancing access to financing
Highest Policy-making Body to Chart SME Development
Roles & Responsibilities
3 Key Strategic Thrusts
National SME Development Council
Strategic Goals in SME Development
Increase Business Formation – Facilitate Business dynamism
Intensify Formalisation – Incentivise innovation, growth and promote fair competition
Raise Productivity – boost income and raise standard of living
Expand Number of High Growth Firms– substantial share
of employment, having the scale to be globally competitive
Focus Areas to Support Strategic Goals
Technology and
Innovation
Legal and Regulatory
Environment
Human Capital
Infrastructure
Market Access
Financing
12
Development
Programmes for SMEs
13
14
Towards producing national, regional and global champions
ONE REFERRAL CENTRE
Business Advisory
Info Centre
Link of Ministries/
Agencies
Pocket Talk
Resource Centre
Product Gallery
Virtual ORC
SME Registry Membership
One Referral Centre (ORC)
15
Towards producing national, regional and global champions
BUSINESS ADVISORY
- Business Counselor
- SEAP Experts
INFO CENTRE
Centralized Call Centre consists of :
Info Line, Info Email, General Line
ORC LINK
Referral Counter for Ministries, Agencies, Banks & DFIs
RESOURCE CENTRE
- Library
- Business Centre : Photostat, printing, etc
- Touch screen kiosk + Internet Kiosk
One Referral Centre (ORC)
16
Towards producing national, regional and global champions
POCKET TALK
- Talk from SME Corp.
-Talk from other Ministries, Agencies, Banks, DFIs
- Company presentation
- Book Launch/ Review
PRODUCT GALLERY
Showcase of products by Industry/sector cluster
- Thematic showcase
- Events/ programme
VIRTUAL ORC
- SME Corp. Corporate Website
- SME Info Portal
SME REGISTRY MEMBERSHIP
- Membership Card
- Enjoy Benefits : current updates & Invitation for events & programmes
One Referral Centre (ORC)
17
SCORE is a diagnostic tool used to rate and
enhance competitiveness of SMEs based on
their performance and capabilities
SME Competitive Rating to
Enhancement (SCORE)
About SCORE
Identifies strengths and weaknesses of SMEs in orde r to recommend measures for improvements
OBJECTIVE
18
Facilitate linkages of potential SMEs with large
companies / MNCs
Link export-ready companies to MATRADE
• a comprehensive diagnostic tool to rate and enhance competitiveness of SMEs based on their performances and capabilities.
• developed in August 2007.
What is SCORE?
• identify strengths and weaknesses for improvements; and
• facilitate linkages.Function
• Business Performance
• Financial Capability
• Management Capability
• Production Capability
Parameter
• 0 – 2 Stars : Very basic business operation
• 3 – 5 Stars : Some degree of sophistication and can be groomed for export
Characteristics
• Retail & Distributive Trade (PUNB)
• Construction (CIDB)
• ICT (MDeC)
Implementation Channel (Existing
Collaborators)
Example of Radar Diagram for 3-Star company
Analysis: Weak in financial capability
Assistance: Require financial management training
• Maintenance, Repair &
Overhaul (MINDEF)
• Professional Services
(PSDC)
• Technical capability
• Quality System
• Innovation
BACKGROUND OF SCORE
SCORE Parameters
The capability
and performance
are measured
based on 7
parameters that
vary across
sectors
One of the initiatives under the SME-Brand Development
Programme, in collaboration with SIRIM QAS International
Sdn. Bhd. to enhance the visibility of Malaysia products
and services in both local and international markets
The National Mark of
Malaysian Brand
The National Mark of Malaysian Brand
Pre-Requisite Criteria
• Business incorporated / registered
• Operating from legal premises
• A minimum 3-STAR rating under SME Certified ISO or equivalent
• Own a Registered Brand
The National Mark of Malaysian Brand
Benefits
of the
Programme
Benefits
of the
Programme
Qualifying SMEs would
have privileged
admittance to SME
Corp. Malaysia
programmes such as
BAP, Brand
Entrepreneurship
conference, SMIDEX and
many more
Qualifying SMEs would
have privileged
admittance to SME
Corp. Malaysia
programmes such as
BAP, Brand
Entrepreneurship
conference, SMIDEX and
many more
Privileged Media
Coverage
Privileged Media
Coverage
Facilitate companies’
access to on-going
local and
international trade
promotion and A&P
activities by
MATRADE
Facilitate companies’
access to on-going
local and
international trade
promotion and A&P
activities by
MATRADE
Invitation to specific
training
opportunities
organised by SME
Corp. Malaysia and
its partners
Invitation to specific
training
opportunities
organised by SME
Corp. Malaysia and
its partners
Special access
passes to MICCI-
SME Corp.
Malaysia
mentoring
programmes
Special access
passes to MICCI-
SME Corp.
Malaysia
mentoring
programmes
SME Corp. Malaysia in collaboration with Limkokwing University of
Creative Technology (LUCT) has established the Branding innovation
Centre to promote branding to the SMEs in Malaysia and to assist
them in building and developing their own brands of products and
services as well as to enhance SME products packaging at this Centre
Branding Innovation
Centre (BIC)
Branding Innovation Centre (BIC)
To provide awareness across the country on the importance of innovation branding and packaging on meeting global market needs
• A bus has been allocated which operates as the Mobile Gallery
to cover the four regions in
peninsular Malaysia namely
North, South, Central and East.
• It will be making trips to designated locations to hold
workshops and training
sessions for SMEs with branding
related collaborators such as
SIRIM, MyIPO and FMM
Branding and Packaging Mobile Gallery
Branding Innovation Centre (BIC)
A programme to recognise and certify
innovative enterprises and SMEs
Innovation Certification for
Enterprise Rating and
Transformation (1-InnoCERT)
1-InnoCERT
Benefits of
the
Programme
Benefits of
the
Programme
Eligible to
participate in
the Annual SME
Innovation
Award
Eligible to
participate in
the Annual SME
Innovation
Award
Facilitated
access to
financial
incentives and
wider market
Facilitated
access to
financial
incentives and
wider market Eligible for
business
coaching
Eligible for
business
coaching
To foster and support innovative SMEs and enterprises to be globally innovative and competitive players
ITechnology innovation
ability
IIITechnology innovation
management ability
SMEs will be assessed using 4 main criteria:
IITechnology
commercializationability
IVTechnology innovation
result
1-InnoCERT
On-Line Assessment
On-Site Audit
1-InnoCERT Committee Approval
Award of Certification
Fast Track Program
Applicant conducts a self-audit using the On-Line Assessment Software
1-InnoCERT Auditor conducts on-site audit to verify innovativeness of company
The 1-InnoCERT Committee (Chaired by MIGHT) will provide final approval for certification
Approved 1-InnoCERT SMEs be awarded with 1-InnoCERT Certification
Provisions of Incentives & Exemptions including accelerated processing. Pre-packaged with 1-InnoCERT Certificate issuance.
1-InnoCERT Mechanism
Click To Do Online Innovation Self-Assessment at
MIGHT website http://www.might.org.my
On-line Innovation Self Assessment
To provide short-term courses under 41 training centres
appointed by SME Corporation Malaysia
Skills Upgrading
Programme
Skills Upgrading Programme
Objectives
To enhance skills and capabilities of SMEs
in hard and soft skills
Benefits
To enhance the skills of the workforce in order to
increase the efficiency, productivity,
professionalism and capabilities of SMEs
Business Matching
In accelerating SMEs to be resilient and competitive in the
global supply chain, Business Matching through the Industrial
Linkage Programme (ILP) is implemented to promote
competitive SMEs
Business Matching
To develop competitive and innovative SMEs
OBJECTIVE
To widen the business opportunity of SMEs in supplying products and services to large companies and Multinational Companies (MNCs)
To encourage SMEs business networking with MNCs and GLCs
Business Matching
BenefitsBenefits
SMEs will be able
to increase
visibility among
potential business
partners, including
large companies,
MNCs and GLCs
SMEs will be able
to increase
visibility among
potential business
partners, including
large companies,
MNCs and GLCs
Potential to boost
sales and business
opportunity
Potential to boost
sales and business
opportunitySMEs will increase
understanding on
the requirements
and criteria
needed to supply
to MNCs and GLCs
SMEs will increase
understanding on
the requirements
and criteria
needed to supply
to MNCs and GLCs
SME Expert Advisory Panel
(SEAP)
3-Phase Programme that provides on-site assistance
and transfering technology as well as technical know-
how to the SMEs by the industry experts
Benefits
of the
Programme
Benefits
of the
Programme
SMEs are able to
receive advice and
guidance from the
industry experts
SMEs are able to
receive advice and
guidance from the
industry experts
The essence of the
remedial measures
is to improve
business practices,
production and
productivity
The essence of the
remedial measures
is to improve
business practices,
production and
productivity
Undertake diagnostic audit on SMEs to identify weaknesses and strengths for them to undertake remedial measures to enhance their capabilities
SEAP
SEAP
FOCUS OF IMPROVEMENT
•Technology improvement•Production capacity
•Engineering•Automation
•Machinery equipment•Materials technology•Process Improvement
•Designing•Financial Management•International Standards
•Productivity Improvement•Maintenance
•Label & Packaging•Quality Assurance
•ICT and Computerisation•Business system e.g. logistic, inventory•Lean Production System Management
Virtual SME Info Centre
Virtual SME Info Centre
SMECORP STATUS
[Ref. No]SMECORP BORANG
[alamat emel]
One Referral CentreBusiness Advisory
Services (BAS)
LAMAN WEBwww.smecorp.gov.my
INFOLINE1-300-88-1801
SMS for SMEs Info& Other Information
Send to 15888
Find us on Facebook SME Corp. Malaysia
THANK YOU
www.smeinfo.com.my