SME WORLD Bureau
SME Corporation Malaysia (SME Corp. Malaysia) is one such agency which is prominent and dominant in promoting SMEs in Malaysia. In this feature we share a brief introduction of this body which is making serious efforts to improve and increase the efficiency of SMEs.
Considering that SMEs are the backbone of the economy in Malaysia – representing 99 per cent of the total business establishments, and contribute about 32 per cent of Gross Domestic Product (GDP) and 59 per cent of total employment, SME Corp. believes that Small and Medium Enterprises (SMEs) are a key driver who will foster the growth of economic as well as social in Malaysia. Some will come under the micro sized businesses, most of it is the sole proprietors, a one-man show business; but still they play a pivotal role. Small in size, big in numbers and create huge impact in our economy.
Generally, SMEs have performed favourably in recent years in terms of value added, employment and productivity for SMEs. Interestingly, analysis derived based on the time series data from Department of Statistics, Malaysia (DOSM) from 2001-2010 shows that the value added growth of SMEs has consistently outperformed the overall value added growth for the country since 2004. Value added growth of SMEs reached its peak in 2007 at 10 per cent, before moderating to 6.4 per cent in 2008 and continued to move downwards to 0.4 per cent in 2009 following the global financial crisis. In 2010, value added growth of SMEs rebounded to 8.4 per cent higher than the overall GDP growth of 7.2 per cent. For the period 2004-2010, the average annual growth rate of SMEs was 6.8 per cent, above the 4.9 per cent average growth in the overall economy. As a result, SME contribution to GDP increased from 31.5 per cent in 2009 to 31.9 per cent in 2010.
SME Corporation Malaysia (SME Corp. Malaysia) was mandated by the Government of Malaysia to spur the development of small and medium enterprises (SMEs) through the provision of infrastructure facilities, financial assistance, advisory services, market access and other support programmes.
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