KUALA LUMPUR: Internationalisation holds the key towards greater resilience for Small and Medium Enterprises (SME), and will open more opportunities for resources such as investment, innovation and diversification, says Deputy Home Minister Datuk Seri Dr Zahid Hamidi.
He said research suggests that SMEs with internalisation tend to report higher turnover growth and demonstrate higher employment growth.
"Even for SMEs that are designed to serve only their domestic market, it is still very important for them to have a global perspective in order to gain a competitive edge.
"While there is no doubt that, becoming internationally active is good for business, I am also aware of the various challenges facing SMEs aspiring to internationalise.
"Apart from access to funding, the top five barriers to SME internalisation have been information-related, such as access to new markets, and identifying foreign business opportunities," he said at the 11th World Islamic Economic Forum (WIEF) today.
Zahid said SMEs make up more than 95 per cent of total business establishments across Asean and generate 50 to 85 per cent of total domestic employment.
SMEs, he noted, contributes 20 to 50 per cent of Gross Domestic Product across Asean nations.