1 SMEs are the backbone of Malaysian Economy... 98.5% (907,065) business establishments in SMEs cut across all sectors of the country are SMEs the economy
Source: Department of Statistics Malaysia and SME Corp. Malaysia
Aligning SMEs with the new trends will accelerate SME Masterplan
New trends will facilitate achievement of the
targets in the SME Masterplan Contribution of SME GDP to Overall GDP (%) SME Masterplan target Megatrends 41.0
36.3 Industrial Revolution 4.0
E-Commerce 2015 2020
Contribution of SME Exports Share of SME Labour
to Total Exports (%) SME Employment (%) Productivity SME Masterplan SME Masterplan target revised target 23.0 65.5 65.5 RM76,400 per RM58,451 17.6 per worker worker
2015 2020 2015 2020 2015 2020
Source: Department of Statistics, Malaysia and SME Corp. Malaysia Global growth is projected to strengthen while Malaysia GDP growth to improve supported by domestic demand
SME Masterplan GOALS MACRO TARGETS
Increase business formation Average per year 6% Increase no of high growth & innovative firms 10% a year Raise productivity 2020: RM76,400 per worker Intensify formalisation Realign with Industrial 2020 : 15% 4.0 (IR4.0) of GNI National Policy Framework for Industry 4.0
High Level Task • FMM
Force • MIDA • MATRADE MITI • PSDC Infrastructure & • MDEC Ecosystem Small & Medium • MAI MCMC Enterprises • Nano Malaysia SME Corp. Malaysia • And many more.. Financing & Incentive MOF Human Capital Development MOHE & MOHR
Technology & Standards MOSTI 5 Government - Enabler for Industry 4.0
1 Develop a comprehensive National level
strategy on Industry 4.0 via NBOS principle 2 Improve telecommunication infrastructure & ecosystem 3 Provide targeted funding and incentives particularly for SMEs 4 Ensure adequate supply of human capital and skills 5 Facilitate development of standards and technology supply 6 Increase overall awareness on Industry 4.0 6 Business Accelerator Program (BAP 2.0) Beginning 2014, new SME definition came into effect to take into account changes in the economy
THRESHOLD REGISTRATION EQUITY STRUCTURE
• Manufacturing: Sales • Locally incorporated under • Not public-listed in main turnover ≤ RM50 million Companies Act 1965; or board in Malaysia or other (USD12 mil) OR full-time • Registered under countries. employees ≤ 200 workers Registration of Business Act • Not a subsidiary of large (1956) or LLP Act 2012; or firms, MNCs, GLCs, Ministry • Services & other sectors: of Finance Incorporated and Sales turnover ≤ RM20 • Registered under authorities or district offices in Sabah State-owned enterprises. million (USD5 mil) OR full- • Not a subsidiary of public- time employees ≤ 75 and Sarawak; or listed company in main board workers • Registered under statutory in Malaysia or other bodies for professional countries. service providers.
8 Business Accelerator Program (Bap 2.0) • Business Accelerator Programme (BAP) 2.0 is an integrated assistance programme to enhance capabilities of small and medium enterprises (SMEs) through business advisory and financial support. • The Programme supports a wide range of capacity building initiatives to assist SMEs to grow their businesses locally and abroad.
Incentives FINANCING Two types of financing available under the Business Accelerator Programme (BAP) : 1.Matching Assistance 2.Soft Loan Eligibility criteria
• Companies Commission of Malaysia either under the Registration of
Business Act (1965) or Registration of Company Act (1965) or Business Limited Liability Partnerships (LLP) Act 2012; or • Respective authorities or district offices in Sabah and Sarawak; or Registration • Respective statutory bodies for professional service providers • Within the definition of SMEs
Equity • 60% equity held by Malaysians
• Have a valid business license from the local authority
License • Registered with the Professional Bodies (For Professional Services) • Business license from the relevant authorities
Other • Has been in operation for at least 6 months
• Committed to undergo SCORE within 3 months from the date approval Criteria 10 Enhancement of Capacity & Capability of SMEs
Enhance capabilities of SMEs Programme supports a wide range Two types of financing available through business advisory & support of capacity building initiatives namely Grant & Soft Loan
GRANT SOFT LOAN SCOPE OF GRANT
FINANCING LIMIT SCOPE OF • Certification & Quality FINANCING Management System • Purchase of machineries & • Packaging • SME Bank : RM50k – RM1 equipment • 50% of total approved • Productivity & Automation cost mil • Working capital • Branding & Promotion • MIDF : RM50K – RM5mil • Eligibility is based on • Innovation & Product SCOPE OF single business entity • Up to 90% margin of Development FINANCING • Tenure: up to 12 financing • Purchase of Machinery • Interest rate at 4% months • Online apps, E-Commerce & • Tenure up to 10 years ICT apps and Software (inc Subscription based) In collaboration with 11 SME Competitiveness Rating for Enhancement (SCORE)
What is SCORE? to assess and weaknesses basic business performance and for improvements. operation
Functions capabilities • Selection criteria • 3–5 : which is used to for potential Competitive rate and business linkages. and export- enhance ready competitive-ness of SMEs. • Developed in August 2007. Analysis: Weak in financial capability Assistance: Requires training in Radar Diagram with 7 financial management & Parameters improvement in quality management Business Advisory INFOLINE Services (BAS) 1-300-30-6000
