SMEs will be assisted to penetrate international markets

9 November 2023

By Wartawan Nabalu News

KUALA LUMPUR: Twenty-one Small and Medium Enterprises (SMEs) have started planning for listing on Bursa Malaysia, with 10 SMEs expected to do so in the near future, while another 11 SMEs are expected to do the same within the next five to ten years.

Minister of Entrepreneur Development and Cooperatives (MECD) Datuk Ewon Benedick congratulated them adding that he was informed by SME Corp. Malaysia that the session held on 5th and 6th September 2023 has yielded positive results.

Twelve SMEs will also expand into new markets overseas through the Trade Linker service provided through this programme, he stated adding that he hoped these new markets potentials can be realised for profitable business returns.

He was speaking during the Closing Ceremony and Appreciation SMEs Catalyst Pilot Programme at Dewan Mahkota SME Corp. Malaysia

Achievements like these are important to enhance the scale and competitiveness of SMEs in line with the goals of the National Entrepreneurship Policy 2030 (DKN 2030) to increase the number of qualities, advanced, resilient, globally-minded, and competitive entrepreneurs, he said.

“The government has announced measures to promote the capital market, which is expected to attract more domestic and international funds into the Malaysian stock market, thereby encouraging SMEs to expand their businesses with additional capital through listing on Bursa Malaysia.”

He said one of these measures is reducing the stamp duty rate for stock trading on Bursa Malaysia from 0.15 percent to 0.10 percent of the contract value, with a maximum limit of RM1,000. This is in line with the goals of the Third Capital Market Masterplan 2021-2025 (CMP3) launched by the Securities Commission Malaysia to build a relevant, efficient, and diverse capital market to strengthen Malaysia's economy and resilience.

He shared that to enhance SMEs's access to the capital market, SME Corp. Malaysia and the Securities Commission Malaysia (SC) signed a Memorandum of Understanding (MoU) on 15th September 2023 to facilitate collaboration in developing SMEs that are ready to explore the capital market through increased awareness, sustainability readiness, and corporate governance.

” This strategic collaboration is expected to create approximately 200 SMEs ready to participate in the capital market by 2026, supporting their growth and enhancing their competitiveness, which is a crucial milestone in the economy” he stated.

He also said to expand market access and accelerate the internationalisation of SMEs, the government will continue to intensify efforts to assist them in penetrating international markets. This initiative will be implemented through closer trade facilitation and G2G cooperation among ASEAN and APEC countries, as well as other international organisations.

“International commercial cooperation by various parties is also encouraged to leverage the benefits of free trade agreements (FTAs) in expanding SMEs market access, including through the implementation of the ASEAN Economic Community (AEC) 2025 Action Plan.”

“As a pillar of the country's economy, SMEs, which encompasses 97.4% of the total businesses in Malaysia, recorded a highly encouraging Gross Domestic Product (GDP) growth in 2022, with double-digit growth of 11.6%, surpassing the overall national GDP growth of 8.7%. Furthermore, this performance demonstrates the increased contribution of SMEs to the national economy, reaching RM580.4 billion in 2022, accounting for 38.4% of GDP, and recording RM144.5 billion in export trade value. Additionally, SMEs represents 48.2% of Malaysia's employment landscape, involving a workforce of 7.59 million individuals.”

The government's full commitment to supporting SMEs development is evident through the implementation of 225 programmes under the Integrated SME Development Plan (SMEIPA) for 2023, with a total allocation of RM10.64 billion to benefit over 644,000 SMEs. These programmes are being implemented by 12 ministries, 4 single agencies, 52 agencies, and 7 state governments, he stressed.

“The government continues to prioritise the development and empowerment of SMEs, as reflected in the 2024 Budget themed "Economic Reform, Empowering the People," which allocates a total of RM44 billion for loans and financing guarantees to drive SMEs growth as regional champions,” he said adding that access to financing, which is often a major challenge for SMEs, is a government priority in providing business development facilities.

Additionally, the government's initiatives include programmes for digitisation, technology and innovation, market access and human capital development, among others.

SME Corp. Malaysia, as the central coordinating agency, plays a crucial role in disseminating information regarding SMEs development initiatives announced in the 2024 Budget through the SMEs Hub located at the Head Office in Kuala Lumpur and 12 State Offices nationwide, he said.