KUALA LUMPUR: Small and Medium Enterprises (SMEs) has contributed more than a third of RM1.2 trillion national gross domestic product (GDP), said Minister in the Prime Minister's Department Datuk Seri Abdul Rahman Dahlan.
In a statement, he said SMEs had also created job opportunity to 5.7 million employees which constitute almost half of total employment and represent 98.5 per cent of establishments in Malaysia.
“SMEs in Malaysia are seen to be thriving with mushrooming establishment of homestays, stalls and restaurants, printing outlets, small-to-medium capacity factories and businesses selling local products” he said.
He added that according to the recent data released by the Department of Statistics, Malaysia (DOSM), SMEs contribution to Malaysia’s GDP increased to 36.6 per cent in 2016 from 36.3 per cent in 2015.
“SMEs also recorded a growth of 5.2 per cent outpacing 4.2 per cent growth of Malaysia’s GDP in 2016 which proves that SMEs are doing well despite slower national economic growth,” he added.
Abdul Rahman also said these achievements were made possible by the efforts of the SMEs themselves and the ecosystem, assistance and initiatives that were provided by the government thru the Ministry of International Trade and Industry.
“Nonetheless, the export contribution of SMEs is still low at 4.4 per cent of total Malaysia’s exports and there is certainly room for improvement for SMEs to actively participate and strive for the export markets to ensure their business sustainability.”
He added that this year had been declared as the Start-up and SME Promotion Year.
“In Budget 2017 that was presented last year, Prime Minister Datuk Seri Najib Razak announced a total allocation of RM6.7 billion for SME development spanning across various ministries and government agencies.
“Existing and new focus-based programs and initiatives covering a broad spectrum of groups like B40, Bumiputera, Indian, Chinese, start-ups, farmers, smallholders, exporters and women entrepreneurs were continued,” said Abdul Rahman.
Meanhwile, Abdul Rahman said recognising the ability of women in Malaysia’s economy, a total of RM2 billion was allocated for I-KIT, I-KeuNita and Women Career Comeback programs.
“Women-owned SMEs accounted for 186,930 or about 20.6 per cent of total SMEs in Malaysia with an annual growth of 8.0 per cent.
“E-commerce initiatives such as e-commerce ecosystem and Digital Maker Movement as well as the introduction of new location category as Malaysia Digital Hub were outlined to create the conditions that enable the benefits of open markets and technological progress to be enhanced and shared more broadly across the economy and society,” added Abdul Rahman.
Abdul Rahman reiterated that the government would continue to support the development of SMEs in this coming Budget 2018 in line with the 2012 – 2020 SME Masterplan to achieve SMEs’ contribution to GDP 41 per cent, and the share of the country’s exports from SMEs to 23 per cent.
“Enabling SMEs to adapt and thrive in a more open environment and participate more actively in the digital transformation is essential for boosting and delivering a more inclusive economic growth and also achieving the Sustainable Development Goals, by promoting inclusive and sustainable economic growth, providing employment and decent work for all, promoting sustainable industrialisation and fostering innovation, and reducing income inequalities.”