Washington, DC July 5, 2016—Ninety-seven p.c of enterprise institutions in Malaysia are small and medium enterprises (SMEs). These companies are accountable for almost 36% of the nation’s GDP, 65% of the nation’s employment, and almost 18% of Malaysia’s exports.
SMEs have been on the core of Malaysia’s financial transformation for the reason that Nineties to an upper-middle earnings nation and are an vital driver of employment and progress.
“By way of numbers, SMEs are important, and so they kind the spine of Malaysia’s economic system,” mentioned Dato Hafsah Hashim, chief government of SME Company Malaysia at a current occasion organized by the brand new World Financial institution Group Information and Analysis Hub in Kuala Lumpur in partnership with the Commerce & Competitiveness World Observe. “To us in Malaysia, small is the brand new huge.”
Hafsah, who’s accountable for coordinating and overseeing insurance policies for the general improvement of SMEs in Malaysia, helped create and is now implementing the 2012-2020 SME Masterplan. Designed along with the World Financial institution Group, and described by Malaysia’s Prime Minister as a “recreation changer,” the Masterplan features a structured framework to advance SME improvement.
By 2020, Malaysia goals to push SMEs’ contribution to GDP to 41%, and the share of the nation’s exports from SMEs to 23%.
“Malaysia’s transition to a high-income economic system will extremely rely upon SMEs’ contribution to GDP progress,” mentioned Anabel Gonzalez, Senior Director of the Financial institution Group’s Commerce & Competitiveness World Observe. “As well as, SMEs have a major function to play in creating alternatives for girls and youth.”
Malaysia’s SME progress has outpaced that of the general economic system, however the nation’s goal of 8% SME progress via 2020 will probably be powerful to keep up, provided that the general economic system is rising solely at about 5% yearly, in response to Hafsah.
“Our general imaginative and prescient is to have globally aggressive SMEs throughout all sectors that improve wealth creation and contribute to the social wellbeing,” mentioned Hafsah.
Secondary objectives embrace rising enterprise formation by 6% on common per yr and rising the variety of excessive progress and revolutionary companies by 10% per yr.