DEVELOPMENT PROGRAMMES AND

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DEVELOPMENT PROGRAMMES AND FINANCIAL ASSISTANCE
FOR SMEs
BY MASLINDA ZULKIFLY
LEGEND HOTEL, KUALA LUMPUR 30 JULY 2008
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ABOUT SMIDEC
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SMIDEC

• Established under the Parliamentary Act, 539 on
  2nd May 1996
• An agency under the Ministry of International
  Trade and Industry
• Focal point for the overall development of SMEs
  in the country
• Provides capacity building programmes and
  assistance through fiscal and non-fiscal
  incentives

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VISION
To be the leading organisation in developing
SMEs that contribute to the economic growth and
enhancement of Malaysias competitiveness
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MISSION
To transform SMEs to be vibrant, competitive and
resilient and to be fully integrated into the
manufacturing and services sectors
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FUNCTIONS

• Promote, coordinate and implement programmes for
  the development of SMEs
• Forge industrial linkages between SMEs and large
  companies/multinational corporations (MNCs)
• Implement, coordinate and monitor financial
  assistance schemes
• Provide technical and advisory support services
• Collaborate with other local and international
  SME-related agencies

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PROFILE OF SMEs
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DEFINITION OF SMEs
Annual sales turnover lt RM25 million OR Full
time employees lt150
Manufacturing, Manufacturing Related Services and
Agro -based Industry
Annual sales turnover lt RM5 million OR Full
time employees lt 50
Services, Primary Agriculture, Information and
Communication Technology (ICT)
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DEFINITION OF MICRO, SMALL AND MEDIUM
CATEGORY MICRO SMALL MEDIUM
Manufacturing, Manufacturing-related services Agro-based Industries sales turnover lt RM250,000 OR full time employees lt 5 RM250,000 gt sales turnover lt RM10 mil. OR 5 gt full time employees lt 50 RM10 mil. gt sales turnover lt RM25 mil. OR 51 gt full time employees lt 150
Services, Primary Agriculture and Information Communication Technology (ICT) sales turnover lt RM200,000 OR full time employees lt 5 RM200,000 gt sales turnover lt RM1 mil. OR 5 gt full time employees lt 19 RM1 mil. gt sales turnover lt RM5 mil. OR 20 gt full time employees lt 50
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4,537 (0.8)
TOTAL ESTABLISHMENTS BY SIZE
12,610 (2.3)
100,333 (18.2)

• Total establishments 552,804
• No. of SMEs 548,267 (99.2)

435,324 (78.7)
Source Census of Establishments Enterprises
2005 Profile of SMEs
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DISTRIBUTION OF SMEs BY SECTOR
Agriculture(6.2 )
Manufacturing(7.2 )
Services(86.6 )
Source Census of Establishments Enterprises
2005 Profile of SMEs
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CONTRIBUTION OF SMEs TO GDP
()
37
32
23.1
19.7
8.4
9.6
3.9
4.3
Source National SME Development Blueprint 2007
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CONTRIBUTION OF SMEs TO EMPLOYMENT
()
57
56.4
33.9
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14.5
15.1
8.1
6.9
Source National SME Development Blueprint 2007
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SUPPORT FOR SMEs
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SUPPORT FOR SMEs
Incentives and Financial Assistance Programmes
SME Development Programmes
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SME DEVELOPMENT PROGRAMMES
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ENHANCEMENT PROGRAMME
SME EXPERT ADVISORY PANEL (SEAP)
OUTREACH PROGRAMMES
SME DEVELOPMENT PROGRAMMES
BRAND SME DEVELOPMENT PROGRAMME
TECHNOLOGY INNOVATION
SKILLS UPGRADING
ENTREPRENEURSHIP
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ENHANCEMENT PROGRAMME FOR SME s - AUTOMOTIVE
SECTOR

• Malaysia-Japan Industrial Cooperation (MAJAICO)
• Initiated under Malaysia-Japan Economic
  Partnership Agreement (MJEPA)
• 5-year project (2006-2011)
• Improve productivity through Lean Production
  System
• 150 projects to benefit from the Programme

SMEs

• CAPACITY BUILDING
• Quality Control and Improvement of Standard
• Waste Reduction
• Inventory Management Control and Improvement
• Reduction in rejection rate during production
• Technology Transfer of Mould Die
• Technical Assistance

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ENHANCEMENT PROGRAMME FOR SME s - AUTOMOTIVE
SECTOR contd
Benefits gained by companies under MAJAICO
Programme

• improvement in productivity from 30 to 200
• reduction in unscheduled machine tooling
  downtime from
• 4 days to 2 days
• reduction in rejection rate from 5 to 2
• reduce stock inventory by 17 - improvement in
  space utilisation and housekeeping
• create opportunity for employees to contribute
  and make improvement in their working areas on a
  regular basis and
• potential to penetrate into the international
  market.

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SME EXPERT ADVISORY PANEL (SEAP)
SMEs
Visit ,Diagnose Recommend

• Improvements
• Packaging Labeling
• Production capabilities
• Compliance to Standards/ Certification
• Lean Production System
• Management Financial Advisory

53 industry experts
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BRAND SME DEVELOPMENT PROGRAMME

• OBJECTIVE
• To promote and reinforce the value of individual
  SME brands.

• TARGET
• To promote, reinforce and sustain the value of
  individual SME brands through the building of a
  National Mark
• Promote domestic and global recognition and
  acceptance of the National Mark
• To enhance the acceptability of SMEs products
  and services in domestic and foreign markets
• To facilitate and accelerate SME knowledge and
• appreciation in branding and
• 100 SMEs brands established overseas within four
  years.

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TECHNOLOGY AND INNOVATION
National SME Innovation Focal Point
SMIDEC
Research Institutions/ Universities
Banks/ Financial Institutions
SMEs
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Members of the National SME Innovation Focal Point
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TECHNOLOGY AND INNOVATION contd

• Technology Database
• (in collaboration with MASTIC)
• - 270 technologies available for
  commercialisation
• - 18,413 researchers profile available
• SMIDEX07 23 technologies matched

TECHMART in SMIDECs website

Technology Roadmap - Completed Roadmaps
? Electrical Electronics ? ICT
? Biotech industry - Work In Progress
? Automotive Sector
? Plastics Rubber

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SMIDEC ANNUAL SHOWCASE
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ENTREPRENEURSHIP
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ENTREPRENEURSHIP contd
UNIVERSITY - SME ATTACHMENT PROGRAMME
University Education

• Benefits to SMEs
• - exposure to the latest development of business
  practices and applications of technology and
• - improved ways of doing business.

• Benefits to students
• - industry exposure and practical applications of
  their studies as well as enhance self confidence
  in doing business and
• - inculcate the spirit of entrepreneurship.

Local International Networking
Local SMEs
Students
Linking SMEs to Universities to upgrade the
capability of SMEs
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SKILLS UPGRADING
Skills Upgrading Programme
Enhancing Marketing Skills of SMEs
Status 22,571 employees trained(RM22.3 million)
80 grant on training fees
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SKILLS UPGRADING ...contd
35 SKILLS DEVELOPMENT CENTRES PROFESSIONAL
TRAINING PROVIDERS APPOINTED
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FINANCIAL ASSISTANCE PROGRAMMES
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QUALIFYING CRITERIA

• Companies incorporated under the Companies Act
  1965 OR enterprises incorporated under the
  Registration of Business Ordinance 1956 OR
  Certificate of Practice by Regulatory Body
• Fulfill definition of SMEs
• At least 60 equity held by Malaysian
• Possess valid premise license

SECTOR COVERAGE

• Manufacturing
• Manufacturing Related Services
• Services (Except Insurance and Financial Services)

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RM500,000
MATCHING GRANTS
RM250,000
RM200,000
RM150,000
RM100,000
RM100,000
RM100,000
Matching Grant for Business Start-ups
Matching Grant for Product and Process
Improvement
Matching Grant for Certification and Quality
Management Systems
Matching Grant for Market Development
Matching Grant for Development and Promotion of
Halal Products
Matching Grant for Enhancing Product Packaging
Grant for RosettaNet Standard Implementation
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MATCHING GRANT FOR PRODUCT AND PROCESS
IMPROVEMENT

• Provides grant to SMEs for Product Development
  and Product Process Improvement.
• Eligible expenses
• Technology Feasibility Studies
• Fees for technology transfer
• Development of prototypes and system design
• Product testing registration
• Marking and labeling
• Machine equipment for testing and calibration
• Development designing of equipment and
  machinery
• Purchase of machinery and equipment
• Initial patent registration/patent search/IP
  Protection
• Specific Project Mission
• Cleaner Production and Waste Treatment Project

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MATCHING GRANT FOR ENHANCING PRODUCT PACKAGING

• Designing and improving product packaging and
  labeling through appropriate packaging technology
  
• Eligible Expenses
• Related costs and services for designing,
  packaging, marking and labeling
• Trade mark and patent registration
• Purchase of related machinery and equipment

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• Interest Rate 2
• Max Loan RM 3 million
• Payment Period 15 years

• Interest Rate 2
• Max Loan RM 3 million
• Payment Period 15 years

• Interest Rate 2
• Max Loan RM500,000
• Payment Period 5 years

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NEW

• 10 per cent of all value of all SMIDECs grants
  will be disbursed upon approval
• Interest loans for SMEs reduced from 4 to 2
  per annum and
• Margin of financing increased from 85 to 90.

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OUTREACH PROGRAMMES
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ENTERPRISE 50 AWARD PROGRAMME

• Prestigious award recognising the achievements of
  Top 50 enterprising home-grown companies
• Provide opportunities to benchmark against their
  peers

1996 - 2007

• TOTAL NOMINATIONS - 1,310
• TOTAL ALUMNI - 386
• LISTED ON MALAYSIAN BOURSE - 41

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PUBLICATIONS
Handbook on Policies, Incentives, Programmes and
Financial Assistances
SME Newslink bi-monthly publication
SME eNews monthly e-mail blast
Annual Report
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PUBLICATIONS contd
Brochures
Training Directory
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PUBLICATIONS contd
Women Directory
National SME Development Blueprint
SME Annual Report
Brochure for Services Sector
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OUTREACH CHANNELS
SME BUSINESS CENTRE (19th FLOOR)
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