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Malaysia SME Masterplan 2012 - 2020 the Game Changer

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DrBiz Arikrishnan
DrBiz Arikrishnan

Malaysia SME Masterplan 2012 - 2020 the Game Changer In Malay & English Original source http://www.smecorp.gov.my/index.php/en/resources/2015-12-21-11-07-06/sme-masterplan

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Batu permata berharga pada reka bentuk kulit menggambarkan kepentingan Program Berimpak Tinggi dan langkah pelengkap dalam mencapai lonjakan berganda dalam pertumbuhan dan pendapatan bagi menjayakan matlamat Pelan Induk PKS. Batu permata juga melambangkan sesuatu yang tersendiri bagi mencerminkan keunikan Pelan kerana ia merupakan 'pelan sepanjang hayat' yang akan terus relevan dengan perubahan masa. _________________________________________________________________________ The precious gems on the cover design depict significance of the High Impact Programmes and complementary measures in achieving the objectives of the SME Masterplan for a quantum leap in growth and income. The gems also signify rarity reflecting the uniqueness of the Plan as it is a 'live plan' that will remain relevant with changing times.
“Jika kita tidak memperkenalkan ‘game changer’, kita akan terjerat dalam perangkap pendapatan sederhana, dan tidak lagi berdaya saing dari segi kos berbanding sesetengah negara lain.” “Melangkah ke hadapan, Kerajaan akan menerapkan pendekatan berbeza bagi menggiatkan pertumbuhan PKS dan menjadi pendorong pertumbuhan yang diterajui oleh sektor swasta.” “…ekonomi yang didorong oleh inovasi memerlukan suatu golongan baharu PKS yang boleh membantu mendorong inovasi yang dipacu pasaran dan teknologi bagi mewujudkan lebih banyak pekerjaan kemahiran tinggi dalam semua sektor ekonomi.” Dato' Sri Mohd Najib Tun Haji Abdul Razak Perdana Menteri Malaysia/ Pengerusi Majlis Pembangunan PKS Kebangsaan Petikan daripada Ucapan YAB Perdana Menteri
Kandungan • Mengapakah kita memerlukan Pelan Induk PKS? 4 • Apakah status PKS di Malaysia? 8 • Apakah pendorong prestasi PKS? 10 • Bagaimanakah Pelan Induk PKS dapat mencapai 12 Wawasan 2020? • Apakah manfaat untuk PKS? 16 • Satu Permulaan Baharu 22 Lampiran • Ringkasan Pelan Tindakan : 32 Inisiatif 24 • Definisi PKS 30
Memangkin Pertumbuhan dan Pendapatan 3 RINGKASAN PELAN INDUK PKS 2012 - 2020
RINGKASAN PELAN INDUK PKS 2012-2020 4 AN PELAN INDUK PKS 2012-2020 Mengapakah kita memerlukan Pelan Induk PKS? Perusahaan kecil dan sederhana (PKS) termasuk perusahaan mikro memainkan peranan penting dalam mendorong pertumbuhan, guna tenaga dan pendapatan di Malaysia. Sejak beberapa tahun kebelakangan ini, PKS telah mencatat prestasi yang memberangsangkan. Keluaran Dalam Negeri Kasar (KDNK) PKS berkembang pada kadar purata pertumbuhan tahunan 6.8%, jauh melebihi purata KDNK keseluruhan sebanyak 4.9% dalam tempoh 2004 - 2010. Ini sebahagian besarnya hasil dasar sokongan yang diwujudkan oleh Kerajaan melalui Majlis Pembangunan PKS Kebangsaan (MPPK). Majlis yang dipengerusikan oleh YAB Perdana Menteri ini telah membina sebuah rangka kerja komprehensifyangmenyatukanlebih15Kementerian dan 60 Agensi untuk berusaha ke arah matlamat yang sama. Namun, melangkah ke hadapan, lantaran persekitaran global yang dilanda ketidakpastian dengan persaingan yang bertambah sengit, Malaysia memerlukan 'game changer' untuk beralih kepada sebuah negara berpendapatan tinggi menjelang tahun 2020. PKS adalah kritikal dalam proses transformasi ekonomi kerana ia merupakan sumber pertumbuhan domestik dan asas kepada aktiviti sektor swasta. PKS juga adalah penting dalam merangsang inovasi dan bertindak sebagai penstabil pertumbuhan semasa kelembapan ekonomi.
Memangkin Pertumbuhan dan Pendapatan 5 Pelan Induk PKS sebagai 'Game Changer' Pelan Induk PKS akan bertindak sebagai 'game changer' dalam mempercepat pertumbuhan PKS bagi mencapai status negara berpendapatan tinggi menjelang tahun 2020. Pelan Induk ini adalah untuk semua PKS merentasi semua sektor, gender, wilayah geografi dan latar belakang etnik. Kejayaan dalam melaksanakan Pelan Induk bakal meningkatkan sumbangan PKS kepada ekonomi menjelang tahun 2020: • KDNK: 41% (2010: 32%); • Guna tenaga: 62% (2010: 59%); dan • Eksport: 25% (2010: 19%).
RINGKASAN PELAN INDUK PKS 2012-2020 6 Peranan PKS dalam Ekonomi Melangkah ke hadapan, PKS bakal memainkan peranan yang lebih penting dalam ekonomi. PKS akan menjadi pemacu utama pertumbuhan dalam usaha Malaysia menjadi sebuah ekonomi berpendapatan tinggi. Di samping itu, PKS akan terus memainkan peranan sebagai pendorong pertumbuhan apabila meningkat daripada pembekal peringkat kedua dan ketiga pada ketika ini, kepada pembekal peringkat pertama dan membina hubungan dengan firma besar dalam rantaian pembekalan global. Pembangunan PKS juga adalah penting dalam mencapai pertumbuhan lebih seimbang dan terangkum, kerana Pelan turut memfokus kepada perusahaan mikro dan bahagian 40% terendah dalam piramid pendapatan. Keutamaan akan diberi kepada usaha memupuk PKS domestik, daripada peringkat permulaan kepada membantu perkembangan dan menjadi pemangkin pertumbuhan firma berpotensi tinggi yang berupaya menjadi juara negara yang dapat bersaing di pasaran serantau dan global. Dalam pada itu, bahagian 40% terendah dalam piramid pendapatan termasuk perusahaan mikro akan dibawa masuk ke dalam aliran utama ekonomi agar dapat meraih manfaat daripada bantuan Kerajaan dan proses transformasi ekonomi. Peralihan ini akan mengakibatkan perubahan kepada struktur ekonomi yang lebih cenderung kepada sektor perkhidmatan dan aktiviti berintensif pengetahuan dengan nilai ditambah yang lebih tinggi. PKS perlu mengubah sudut perspektif minda untuk bersiap sedia ke arah peralihan ini.
Memangkin Pertumbuhan dan Pendapatan 7 Pendekatan Baharu bagi Pembangunan PKS Pelan Induk akan menerapkan pendekatan baharu bagi pembangunan PKS, iaitu pendekatan berasaskan hasil. Untuk itu, Pelan Induk akan membangunkan satu sistem Pemantauan dan Penilaian (Monitoring & Evaluation, M&E) yang menyeluruh bagi memastikan keberkesanan program. Buat kali pertama di Malaysia, Pelan Induk telah memperkenalkan konsep 'pelan sepanjang hayat' supaya ianya akan terus relevan dengan perubahan masa. Program mungkin perlu diubah suai dari semasa ke semasa agar bertepatan dengan perubahan alam sekitar dan struktur yang mungkin berlaku. Namun, visi, matlamat dan strategi keseluruhan tidak berubah. Pelan ini akan memenuhi keperluan perniagaan PKS dan bakal dilaksanakan dengan kerjasama sektor swasta menerusi perkongsian awam-swasta. Peranan persatuan industri, dewan perniagaan dan organisasi bukan kerajaan akan terus dipertingkatkan bagi membantu memperluaskan jangkauan program kepada lebih banyak PKS di negara ini dan membina kapasiti di peringkat daerah, negeri dan kebangsaan.
RINGKASAN PELAN INDUK PKS 2012-2020 8 AN PELAN INDUK PKS 2012-2020 Apakah status PKS di Malaysia? PKS di Malaysia ditakrifkan berdasarkan dua kriteria, iaitu jumlah hasil jualan tahunan dan bilangan pekerja sepenuh masa sesebuah perniagaan (butiran di Lampiran). PKS merangkumi 99.2% daripada jumlah pertubuhan perniagaan di negara ini. Menurut statistik terkini, PKS menyumbang 32% daripada KDNK, 59% daripada guna tenaga dan 19% daripada eksport. Ciri-ciri Utama PKS Berdasarkan kajian untuk Pelan Induk ini, PKS di Malaysia memaparkan empat ciri utama seperti berikut: • Produktiviti yang rendah berbanding dengan firma besar di Malaysia dan PKS di negara maju. Produktiviti PKS bagi pekerja mencatat nilai purata RM47,000, kira-kira satu pertiga daripada produktiviti firma besar domestik. PKS di Amerika Syarikat dan Singapura masing- masing adalah tujuh kali dan empat kali lebih produktif berbanding PKS di Malaysia; • Kadar penubuhan perniagaan yang secara relatifnya lebih rendah berbanding negara berpendapatan tinggi. Pembentukan syarikat liabiliti terhad digunakan sebagai kayu pengukur
Memangkin Pertumbuhan dan Pendapatan 9 bagi dinamisme sektor swasta dan tahap keusahawanan dalam sesebuah ekonomi. Meskipun penubuhan perniagaan di Malaysia agak pesat, sebagai besarnya adalah milikan tunggal dan perkongsian, manakala bilangan syarikat liabiliti terhad adalah kecil; • Sebilangan kecil firma yang mempunyai pertumbuhan tinggi menyumbang bahagian ketara kepada ekonomi. Penemuan kajian menunjukkan bahawa firma paling pesat berkembang menyumbang 70% daripada KDNK tambahan dan 46% daripada guna tenaga tambahan dalam tempoh 2000- 2005; dan • Bahagian sektor tidak formal yang ketara dalam ekonomi. Sektor tidak formal dianggarkan mencakupi 31% daripada Pendapatan Negara Kasar (Negara maju: 14%; AS: 9%; Singapura: 13%). Impak Positif Program Pembangunan PKS Buat pertama kali, Kerajaan dengan kerjasama Bank Dunia telah melaksanakan penilaian impak terhadap 15 program pembangunan PKS. Hasil penilaian menunjukkan bahawa program tersebut berjaya membuahkan hasil yang positif. Tabung Pembangunan Sumber Manusia (Human Resources Development Fund, HRDF) terutamanya telah memaparkan kesan amat positif dari sudut pelaburan, keamatan modal dan produktiviti. Program lain yang melibatkan pembangunan bukan sumber manusia turut menunjukkan impak positif terhadap jumlah output and nilai ditambah, keamatan modal dan produktiviti faktor menyeluruh (total factor productivitiy, TFP). Namun, impak terhadap produktiviti buruh adalah terhad manakala upah pula tidak terjejas.
RINGKASAN PELAN INDUK PKS 2012-2020 10 AN PELAN INDUK PKS 2012-2020 Apakah pendorong prestasi PKS? Pemahaman tentang faktor yang mendorong prestasi PKS adalah penting dalam usaha melonjakkan pembangunan PKS. Berdasarkan analisis teknikal terhadap data Malaysia, Pelan Induk menyerlahkan enam faktor yang mempengaruhi prestasi PKS Malaysia, iaitu: • Penerapan inovasi dan teknologi; • Pembangunan modal insan; • Akses kepada pembiayaan; • Akses kepada pasaran; • Persekitaran perundangan dan kawal selia; dan • Infrastruktur. Semua pendorong prestasi ini perlu dipertingkatkan secara serentak kerana sebarang kelemahan dalam mana-mana pendorong tersebut akan menghalang PKS mencapai potensi sepenuhnya. Pada ketika ini, PKS masih belum berjaya mencatat prestasi tinggi ekoran cabaran tertentu dalam setiap bidang tersebut. Pelan Induk bertujuan menangani cabaran tersebut bagi meningkatkan prestasi pertumbuhan bagi mencapai Wawasan 2020.
Memangkin Pertumbuhan dan Pendapatan 11
RINGKASAN PELAN INDUK PKS 2012-2020 12 AN PELAN INDUK PKS 2012-2020 Bagaimanakah Pelan Induk PKS dapat mencapai Wawasan 2020? Pelan Induk menerapkan strategi dua serampang untuk menangani cabaran ini. Stategi yang berbeza akan diguna pakai bagi memenuhi keperluan semua PKS, daripada perusahaan mikro hingga ke perniagaan yang lebih canggih. Strategi pertama menggariskan langkah umum untuk membangunkan rangkaian bantuan menyeluruh bagi perusahan mikro dan membawa mereka masuk ke dalam aliran utama ekonomi dan menyumbang kepada pertumbuhan. Pada masa yang sama, Pelan ini menyarankan pendekatan tersasar untuk menggalakkan syarikat berinovasi dan mempunyai pertumbuhan tinggi merealisasi potensi maksimum dan untuk membawa PKS menceburi pasaran global.
Memangkin Pertumbuhan dan Pendapatan 13 Rangka Kerja Baharu Pembangunan PKS Pelan Induk menyarankan satu rangka kerja baharu untuk menjajarkan pembangunan PKS kepada aspirasi nasional demi mencapai status ekonomi berpendapatan tinggi menjelang tahun 2020, melalui pertumbuhan yang dipacu oleh produktiviti dan inovasi. Rangka kerja baharu ini merangkumi lima elemen, iaitu visi, matlamat, bidang tumpuan, pelan tindakan dan sokongan keinstitusian. Setiap matlamat diiringi sasaran khusus yang perlu dipenuhi demi mencapai sasaran makro yang ditetapkan, dari segi sumbangan PKS kepada KDNK, guna tenaga dan eksport menjelang tahun 2020.
RINGKASAN PELAN INDUK PKS 2012-2020 14 Peluang Pertumbuhan Masa Hadapan Sektor perkhidmatan bakal menjadi pemacu pertumbuhan masa hadapan, dengan sumbangan sebanyak 65% kepada KDNK menjelang tahun 2020. PKS perlu membina kapasiti dan keupayaan untuk menangani cabaran yang timbul daripada liberalisasi dan pada masa yang sama, merebut peluang baharu yang muncul. PKS juga bakal meraih manfaat daripada Bidang Ekonomi Utama Negara (National Key Economic Areas, NKEAs) yang diumumkan oleh Kerajaan. Kira-kira 60% daripada Projek Permulaan (Entry Point Projects, EPPs) yang dikenal pasti dijangka memanfaatkan PKS dalam semua sektor. PKS berdepan dengan cabaran untuk beralih keluar dari bahagian rantaian nilai rendah dalam NKEA, iaitu dari aktiviti nilai ditambah rendah hingga sederhana kepada rantaian nilai yang tinggi. Pelan Induk PKS dijangka merancakkan penjajaran aktiviti ke arah aktiviti nilai ditambah lebih tinggi sepertimana yang ditunjukkan dalam peluang pertumbuhan baharu PKS.
Memangkin Pertumbuhan dan Pendapatan 15
RINGKASAN PELAN INDUK PKS 2012-2020 16 AN PELAN INDUK PKS 2012-2020 Apakah manfaat untuk PKS? Pelan Induk menyarankan 32 inisiatif termasuk enam Program Berimpak Tinggi (High Impact Programme, HIP) dan empat langkah bertema. HIP memainkan peranan penting kerana bakal memberi sumbangan ketara ke arah mencapai matlamat Pelan Induk. Menyedari keunikan persekitaran perniagaan yang unik di Malaysia Timur, Pelan Induk turut menyarankan langkah khusus untuk PKS di Malaysia Timur.
Memangkin Pertumbuhan dan Pendapatan 17 Enam Program Berimpak Tinggi yang Membawa Perubahan Sesetengah Program Berimpak Tinggi (HIP) pada asasnya akan diurus dan disampaikanolehsektorswasta,tetapidimilikiolehsebuahKementerianatau Agensi. Kementerian atau Agensi peneraju akan melaporkan perkembangan dan hasil dari aspek peningkatan penjualan, keuntungan, pelaburan, produktiviti dan petunjuk penting lain melalui Agensi Penyelarasan Pusat kepada MPPK. HIP 1: Integrasi Pendaftaran dan Pelesenan Perniagaan bertujuan mewujudkan satu titik pendaftaran tunggal dengan menyepadukan Sistem Pendaftaran Perniagaan Negara iaitu My Corporate Identity (MyCoID) dengan Sistem Pelesenan Perniagaan Negara iaitu Sistem Sokongan Elektronik Lesen Perniagaan (BLESS). Inisiatif dapat bertujuan memudahkan prosedur agar dapat mengurangkan sela masa dan kos yang terlibat untuk memulakan perniagaan baharu. Inisiatif ini juga akan meningkatkan pemformalan kerana pendaftaran akan dijadikan pra-syarat bagi pelesenan.
RINGKASAN PELAN INDUK PKS 2012-2020 18 HIP 2: Platform Pengkomersialan Teknologi (TCP) merupakan sebuah platform rangkaian kebangsaan yang diurus oleh pihak swasta agar menggalakkan idea inovatif dari peringkat bukti konsep (proof of concept, POC) ke peringkat pengkomersialan. TCP bertujuan menghapuskan sekatan pasaran terhadap inovasi dengan menyediakan hubungan kepada rangkaian perkhidmatan termasuk sokongan infrastruktur, pembiayaan, bantuan teknikal, maklumat pasaran dan pembinaan kapasiti. HIP 3: Program Pelaburan PKS (SIP) akan menyediakan pembiayaan peringkat awal dengan membangunkan syarikat pelaburan yang akan melabur dalam PKS berpotensi dalam bentuk hutang, ekuiti atau hibrid kedua-dua. Ini dapat menggiatkan pertumbuhan industri modal teroka di Malaysia yang mampu menyokong syarikat permulaan terutamanya PKS yang inovatif.
Memangkin Pertumbuhan dan Pendapatan 19 HIP 4: Program Going Export (GoEx) menawarkan bantuan khusus kepada pengeksport baharu dan PKS yang menceburi pasaran baharu. PKS yang bersedia untuk mengeksport boleh mendapatkan sokongan komprehensif yang antara lainnya termasuk akses kepada kepakaran pasaran dan pembeli, dan pematuhan kepada piawaian bagi mempercepat pengantarabangsaan produk dan perkhidmatan. HIP 5:
RINGKASAN PELAN INDUK PKS 2012-2020 20 Program Pemangkin bertujuan mewujudkan jaguh tempatan menerusi pendekatan tersasar dengan sokongan dalam bidang pembiayaan, akses kepada pasaran dan pembangunan modal insan. Program akan merangkumi kriteria pemilihan dan mekanisme keluar yang telus. HIP 6:
Memangkin Pertumbuhan dan Pendapatan 21 Mesin memproses padi Direkacipta oleh Bau anak Lumpuh dari Sarawak dengan menggunakan enjin elektrik Honda. Keterangkuman Inovasi direka bentuk khusus untuk membantu kumpulan berpendapatan 40% terendah agar menggunakan inovasi untuk menggalakkan transformasi masyarakat, termasuk perusahaan mikro di kawasan luar bandar menerusi bimbingan serta sokongan pembiayaan, teknikal dan pengurusan.
RINGKASAN PELAN INDUK PKS 2012-2020 22 AN PELAN INDUK PKS 2012-2020 Satu Permulaan Baharu Pelan Induk PKS menandakan satu permulaan baharu dalam usaha melonjakkan pembangunan PKS ke peringkat seterusnya. Pendekatan yang berbeza amat penting, berpandukan visi keseluruhan Pelan untuk mewujudkan golongan baharu PKS yang berdaya saing di peringkat global. Enam HIP memainkan peranan penting dalam memastikan kejayaan Pelan, diperlengkapkan oleh langkah- langkah lain untuk menangani kekangan semasa yang menghalang pertumbuhan PKS. Pelan Tindakan akan dipacu oleh sektor swasta manakala Kerajaan memainkan peranan sebagai pemudahcara dan pemangkin dalam mewujudkan persekitaran menyokong yang diperlukan untuk PKS. Program akan dipantau, dinilai dan diubahusai untuk memaksimumkan hasil dan membentuk asas kepada pembentukan dasar yang berkesan. Dengan kewujudan rangka kerja yang menyeluruh ini, cabaran utama adalah dalam aspek pelaksanaan Pelan yang memerlukan perubahan daripada sudut perspektif minda semua pihak berkepentingan untuk merealisasikan Pelan Induk.
lampiran Memangkin Pertumbuhan dan Pendapatan 23
RINGKASAN PELAN INDUK PKS 2012-2020 24 Ringkasan Pelan Tindakan : 32 Inisiatif 6 Program Berimpak Tinggi Petunjuk Prestasi1 Sasaran Matlamat 1 Mengintegrasikan pendaftaran dan pelesenan penubuhan perniagaan untuk meningkatkan kemudahan untuk menjalankan perniagaan Masa/ kos untuk memulakan perniagaan baharu 2 Menubuhkan Platform Pengkomersialan Teknologi (TCP) bagi mengintegrasikan PKS dan syarikat permulaan ke dalam sistem inovasi nasional Bilangan idea yang berjaya dikomersial- kan 3 Menyemarakkan ekosistem pembiayaan bukan bank bagi menyediakan pembiayaan peringkat awal melalui Program Pelaburan PKS (SIP) Bilangan syarikat yang dibiayai 4 Mewujudkan program Going Export (GoEx) untuk mempercepat pengantarabangsaan PKS Bilangan syarikat yang mengeksport 5 Memulakan Program Pemangkin untuk menyediakan bantuan komprehensif kepada PKS yang mempunyai potensi pertumbuhan tinggi supaya menjadi jaguh tempatan Bilangan syarikat pertumbuhan tinggi 6 Menggalakkan Keterangkuman Inovasi iaitu 'Sasaran inovasi secara umum' dan 'Inovasi daripada akar umbi' untuk memperkasa kumpulan pendapatan 40% yang terendah Bilangan idea inovatif yang disokong 1 Petunjuk prestasi utama adalah contoh dan tidak terhad Meningkatkan penubuhan perniagaan Menambah bilangan firma yang mempunyai pertumbuhan tinggi dan berinovasi Meningkatkan produktiviti Mempergiat usaha pemformalan
Memangkin Pertumbuhan dan Pendapatan 25 Langkah berdasarkan 4 Tema Petunjuk Prestasi1 Sasaran Matlamat Tema 1 : Pengumpulan sumber dan perkongsian perkhidmatan untuk mengatasi kekurangan skala 7 Menggalakkan Konsortium dan Pengagregatan Penyedia Perkhidmatan untuk membantu penyatuan dan pemasaran produk dan perkhidmatan PKS Bilangan Konsortium yang ditubuhkan 8 Menubuhkan Pusat Penyatuan Logistik untuk membantu PKS mengumpul permintaan dan sumber bagi mengatasi kekangan jumlah penghantaran yang rendah dan kekerapan penghantaran yang terhad Bilangan Pusat yang ditubuhkan 9 Meningkatkan sokongan Sumber Manusia (HR) dan Pembangunan Organisasi (OD) untuk membolehkan PKS menarik lebih ramai pekerja dan seterusnya mengekalkan pekerja Penubuhan akademi OD Tema 2 : Mewujudkan permintaan bagi produk dan perkhidmatan PKS untuk akses pasaran lebih luas 10 Menetapkan dasar perolehan Kerajaan yang khusus bagi PKS Dasar yang diwujudkan 11 Mendorong syarikat multinasional untuk membeli daripada PKS melalui program pembangunan vendor Nilai projek ETP yang diberikan kepada PKS 12 Menyediakan sokongan kewangan untuk membolehkan PKS mematuhi keperluan pasaran bagi piawaian dan persijilan Bilangan PKS yang mempunyai pensijilan
RINGKASAN PELAN INDUK PKS 2012-2020 26 Petunjuk Prestasi1 Sasaran Matlamat Tema 3 : Mengurangkan asimetri maklumat untuk meningkatkan peluang 13 Meningkatkan sistem maklumat kredit semasa untuk menangani asimetri maklumat, termasuk pembiayaan Kerajaan Maklumat kredit lebih komprehensif 14 Menggalakkan penerapan Harta Intelek (IP) dalam kalangan PKS melalui kesedaran dan khidmat nasihat yang lebih mantap Bilangan pemfailan IP oleh PKS 15 Menubuhkan Panel Pakar Bebas (Independent Panel of Experts, IPE) yang terdiri daripada pakar industri untuk membantu institusi kewangan menilai projek teknologi baharu Bilangan pemohon PKS yang menggunakan IPE 16 Menyediakan jangkauan lebih efektif untuk menambah keterangkuman kewangan Bilangan PKS yang dibantu setiap tahun Tema 4 : Membina kapasiti melalui pemerolehan pengetahuan dan peningkatan kemahiran 17 Memastikan kemasukan baharu dalam tenaga kerja bersedia untuk bekerja dalam industri % kemasukan baharu yang diterima bekerja dalam industri berkaitan 18 Mengubah politeknik dan bidang teknikal menjadi kerjaya pilihan Bilangan Politeknik yang mempunyai Program Berkembar (Twinning)
Memangkin Pertumbuhan dan Pendapatan 27 19 Mendapatkan modal insan berkemahiran dari luar negara bagi menangani kekurangan pekerja mahir dalam kalangan PKS Bilangan pelajar biasiswa Kerajaan yang bekerja dengan PKS 20 Memperkukuh program latihan modal insan bagi memenuhi keperluan kemahiran khusus Bilangan pekerja PKS yang dilatih Langkah bagi Malaysia Timur Petunjuk Prestasi1 Sasaran Matlamat 21 Memperbaik kesalinghubungan antara Semenanjung Malaysia dan Malaysia Timur Purata kepantasan dan kos penghantaran kargo 22 Memperbaiki kemudahan asas di Malaysia Timur melalui peningkatan pelaburan dan penguatkuasaan Kemudahan asas yang diperbaik 23 Meningkatkan sistem penyampaian Kerajaan untuk menangani cabaran pentadbiran Purata tempoh selesai penyampaian Kerajaan 24 Memudahkan akses pasaran bagi PKS melalui penyahkawalseliaan, penyediaan infrastruktur pengagregatan dan penguatkuasaan lebih ketat bagi sektor tidak formal Penyahkaw- alseliaan selesai 1 Petunjuk prestasi utama adalah contoh dan tidak terhad Meningkatkan penubuhan perniagaan Menambah bilangan firma yang mempunyai pertumbuhan tinggi dan berinovasi Meningkatkan produktiviti Mempergiat usaha pemformalan
RINGKASAN PELAN INDUK PKS 2012-2020 28 25 Mengkaji semula undang-undang dan dasar dengan mengambil kira keadaan pasaran di Malaysia Timur Kajian semula selesai Langkah Sokongan Lain Petunjuk Prestasi1 Sasaran Matlamat 26 Mengorientasikan semula usaha sedia ada demi mewujudkan sistem pelepasan dan kemudahan perdagangan yang bersepadu dan berkesan Pelaksanaan Tetingkap Tunggal Kebangsaan menurut visi asal 27 Mengkaji semula rejim cukai bagi PKS bertujuan menghapuskan faktor yang menghalang pertumbuhan syarikat Dasar dikaji semula dan kesan dinilai 28 Pindaan kepada Undang-undang Kebankrapan untuk memudahkan penubuhan perniagaan Undang- undang dipinda 29 Menyelaras langkah bagi menggalakkan teknologi dan proses peningkatan produktiviti oleh PKS dengan dasar buruh yang lain Bilangan PKS yang mengguna pakai teknologi 30 Memastikan penjajaran komersial dalam fokus penyelidikan institusi awam dan swasta supaya menepati keperluan industri Bilangan projek penyelidikan yang melibatkan PKS 1 Petunjuk prestasi utama adalah contoh dan tidak terhad Meningkatkan penubuhan perniagaan Menambah bilangan firma yang mempunyai pertumbuhan tinggi dan berinovasi Meningkatkan produktiviti Mempergiat usaha pemformalan
Memangkin Pertumbuhan dan Pendapatan 29 31 Menggiatkan pertumbuhan modal teroka (VC), angels dan modal risiko bagi mewujudkan persekitaran pembiayaan yang lebih mantap Bilangan syarikat yang dibiayai 32 Merancakkan semula peranan yang dimainkan oleh pejabat perdagangan luar negeri Bilangan pejabat luar negeri yang menyediakan perkhidmatan kepada PKS
RINGKASAN PELAN INDUK PKS 2012-2020 30 Definisi PKS Definisi PKS adalah berdasarkan kepada dua kriteria: • Nilai jualan tahunan/hasil sesebuah perniagaan; ATAU • Bilangan pekerja sepenuh masa sesebuah perniagaan. Secara amnya, PKS di Malaysia didefinisikan seperti berikut: • Sektor pembuatan: Jualan tahunan kurang daripada RM25 juta ATAU kurang daripada 150 pekerja sepenuh masa • Sektor perkhidmatan dan lain-lain: Jualan tahunan kurang daripada RM5 juta ATAU kurang daripada 50 pekerja sepenuh masa Secara terperinci definisi tiga kategori iaitu Mikro, Kecil dan Sederhana adalah seperti berikut: Nilai Jualan Tahuan: Saiz Pembuatan (termasuk asas tani) & perkhidmatan berkaitan pembuatan Pertanian Asas Sektor Perkhidmatan (termasuk ICT) Mikro Kurang daripada RM250,000 Kurang daripada RM200,000 Kurang daripada RM200,000 Kecil Dari RM250,000 sehingga kurang daripada RM10 juta Dari RM200,000 sehingga kurang daripada RM1 juta Dari RM200,000 sehingga kurang daripada RM1 juta Sederhana Dari RM10 juta sehingga kurang daripada RM25 juta Dari RM1 juta sehingga kurang daripada RM5 juta Dari RM1 juta sehingga kurang daripada RM5 juta Bilangan Pekerja Sepenuh Masa: Saiz Pembuatan (termasuk asas tani) & perkhidmatan berkaitan pembuatan Pertanian Asas Sektor Perkhidmatan (termasuk ICT) Mikro Kurang daripada 5 pekerja Kurang daripada 5 pekerja Kurang daripada 5 pekerja Kecil Dari 5 sehingga kurang daripada 50 pekerja Dari 5 sehingga kurang daripada 20 pekerja Dari 5 sehingga kurang daripada 20 pekerja Sederhana Dari 50 sehingga kurang daripada 150 pekerja Dari 20 sehingga kurang daripada 50 pekerja Dari 20 sehingga kurang daripada 50 pekerja
Memangkin Pertumbuhan dan Pendapatan 31
Catalysing Growth and Income 33 SUMMARY SME MASTERPLAN 2012 - 2020
“Unless we introduce a ‘game changer’, we will be caught in a middle-income trap, whereby we are no longer as competitive on cost as some countries.” “Going forward, the Government would adopt a differentiated approach to accelerate the growth of SMEs and to provide the impetus for growth led by the private sector.” “ … an innovation-led economy demands a new breed of SMEs that can help foster market and technology-driven innovation to create more high-skilled jobs in all economic sectors.” Dato' Sri Mohd Najib Tun Haji Abdul Razak Prime Minister of Malaysia/ Chairman of National SME Development Council Excerpts from YAB Prime Minister's Speeches
Contents • Why do we need an SME Masterplan? 36 • What is the status of SMEs in Malaysia? 40 • What are the SME performance levers? 42 • How can the SME Masterplan achieve Vision 2020? 44 • What is in store for SMEs? 48 • A New Beginning 54 Annex • Summary of Action Plan : 32 Initiatives 56 • Definition of SMEs 61
SUMMARY SME MASTERPLAN 2012-2020 36 Y SME MASTERPLAN 2012-2020 Why do we need an SME Masterplan? Small and medium enterprises (SMEs) including microenterprises have played an important role in fostering growth, employment and income in the country. In recent years, SMEs have performed well. Gross Domestic Product (GDP) of SMEs expanded at an average annual growth rate of 6.8%, far above the average overall GDP growth of 4.9% per annum in the period 2004 – 2010. This was largely due to the supportive policies put in place by the Government through the National SME Development Council (NSDC). The Council chaired by YAB Prime Minister has laid a comprehensive framework, which brings together more than 15 Ministries and 60 Agencies to work towards achieving a common objective. However, going forward, amidst the uncertain global environment and growing competition, Malaysia requires a 'game changer' to transition the economy to a high income nation by 2020. SMEs are critical to the economic transformation as they form the domestic source of growth and bedrock of private sector activity. SMEs are also important in stimulating innovation and act as stabilisers of growth during an economic slowdown.
Catalysing Growth and Income 37 SME Masterplan as the 'Game Changer' The SME Masterplan will be the 'game changer' to accelerate the growth of SMEs to achieve high income nation status by 2020. The Masterplan will be for all SMEs in Malaysia, irrespective of sector, gender, geographical region and ethnic background. Successful implementation of the Masterplan will result in raising the contribution of SMEs to the economy by 2020: • GDP: 41% (2010: 32%); • Employment: 62% (2010: 59%); and • Exports: 25% (2010: 19%).
SUMMARY SME MASTERPLAN 2012-2020 38 Role of SMEs in the Economy Going forward, SMEs will assume a greater role in the economy. SMEs would be a key driver of growth as Malaysia advances to a high income economy. In addition, the role as enabler of growth will continue as SMEs upgrade from the current second- and third-tier suppliers to first-tier suppliers and link with large firms in the global supply chain. SME development is also important in achieving a more balanced and inclusive growth, as the Plan includes focus on microenterprises and the bottom 40% of the income pyramid. Priority would be given to nurture domestic SMEs, from the start-up stage right through facilitating expansion to catalysing high potential firms that can graduate to become homegrown champions which can compete in the regional and global markets. At the same time, the bottom 40% of the income pyramid which include microenterprises would be brought into the economic mainstream so that they can benefit from Government assistance and the economic transformation process. The transition will see a change in the economic structure as the services sector and more high value-added knowledge-intensive activities gains prominence. SMEs would require a change in mindset in gearing for this transition.
Catalysing Growth and Income 39 A New Approach to SME Development The Masterplan will adopt a new approach to SME development which is outcome-based. To facilitate this, the Masterplan will put in place a comprehensive Monitoring and Evaluation system to ensure effectiveness of programmes. For the first time in Malaysia, a 'live plan' concept is introduced so that the Plan will remain relevant with changing times. Programmes may need to be fine-tuned over time to adjust to environmental and structural changes that may take place. However the vision, goals and overall strategy will remain. The Plan will cater to the business needs of SMEs and will be implemented in collaboration with the private sector through public-private partnerships. The role of industry associations, chambers and non-governmental organisations will be further enhanced to assist in reaching out the programmes to more SMEs in the country and in capacity building at the district, state and national levels.
SUMMARY SME MASTERPLAN 2012-2020 40 Y SME MASTERPLAN 2012-2020 What is the status of SMEs in Malaysia? SMEs in Malaysia are defined based on two criteria, namely annual sales turnover and number of full-time employees of a business (details in Annex). SMEs constitute 99.2% of total business establishments in the country. Latest statistics indicate that SMEs contribute 32% of GDP, 59% of employment and 19% of exports. Key Characteristics of SMEs Based on the study for the Masterplan, SMEs in Malaysia demonstrated four key characteristics as follows: • Low productivity compared to large firms in MalaysiaandSMEsindevelopedcountries.SME productivity per worker averaged RM47,000, which is about one-third the productivity of large domestic enterprises. SMEs in the United States and Singapore are seven and four times more productive respectively than Malaysian SMEs;
Catalysing Growth and Income 41 • Relatively low business formation compared to high income countries. Formation of limited liability companies is a yardstick to reflect private sector dynamism and level of entrepreneurship in an economy. In Malaysia, while business formation has been relatively robust, they comprised mainly sole proprietorships and partnerships and less of limited liability companies; • Small number of high growth firms contribute the most to the economy. Findings showed that the fastest growing firms accounted for 70% of the additional GDP and 46% of the additional employment created during the period 2000 - 2005; and • Material share of informal sector in the economy. It is estimated that the informal sector accounts for 31% of Gross National Income (developed countries: 14%; US: 9%; Singapore: 13%). Positive Impact of SME Development Programmes For the first time, the Government in collaboration with the World Bank undertook an impact study on 15 SME development programmes. The findings showed positive results from these programmes. In particular, the Human Resource Development Fund (HRDF) had shown a strong positive impact on investment, capital intensity and productivity. The non-human resource development programmes had also indicated positive impact on total output and value-added, capital intensity and total factor productivity (TFP). However, there was limited impact on labour productivity and no impact on wages.
SUMMARY SME MASTERPLAN 2012-2020 42 Y SME MASTERPLAN 2012-2020 What are the SME performance levers? In order to accelerate the growth of SMEs, it is important to understand the forces that drive performance of SMEs. Based on a technical analysis on Malaysian data, the Masterplan has highlighted six factors that influence the performance of SMEs. These six performance levers are: • Innovation and technology adoption; • Human capital development; • Access to financing; • Market access; • Legal and regulatory environment; and • Infrastructure. All these performance levers should be enhanced simultaneously as shortcomings in any of these levers will prevent SMEs from reaching their full potential. Currently, SMEs are not achieving high performance due to challenges faced in each of these areas. The aim of the Masterplan is to address these challenges to unleash the growth potential of SMEs to achieve Vision 2020.
Catalysing Growth and Income 43
SUMMARY SME MASTERPLAN 2012-2020 44 Y SME MASTERPLAN 2012-2020 How can the SME Masterplan achieve Vision 2020? The Masterplan adopts a two-pronged approach to address these challenges. A differentiated strategy will be adopted to suit the needs of all SMEs ranging from microenterprises to the more sophisticated firms. On one front, there are generic measures to develop a comprehensive range of assistance for microenterprises and to bring them into the economic mainstream and to contribute to growth. At the same time, the Plan proposes a targeted approach to promote innovative and high growth companies in harnessing their full potential and to integrate into the global market.
Catalysing Growth and Income 45 New SME Development Framework The Masterplan has proposed a new framework to align SME development to the broader national aspirations of achieving a high income economy by 2020 via innovation-led and productivity-driven growth. There a five elements to the new framework, namely vision, goals, focus areas, action plan and the institutional support. Each of the goals has specific targets that need to be met in order to achieve the macro targets in terms of SME contribution to GDP, employment and exports by 2020.
SUMMARY SME MASTERPLAN 2012-2020 46 Future Growth Opportunities The services sector will be the future growth driver accounting for 65% share of GDP by 2020. SMEs must build up capacity and capability to face the challenges from liberalisation and at the same time to leverage on emerging opportunities. SMEs are also poised to benefit from the National Key Economic Areas (NKEAs) announced by the Government. About 60% of the Entry Point Projects (EPPs) earmarked are expected to benefit SMEs in all sectors. The challenge is for SMEs to migrate from the current back- end of the value chain in the NKEAs, i.e. from the low to medium value- added activities to higher end of the value chain. The SME Masterplan is expected to spur recalibration of activities towards higher value-added activities reflected by the new growth opportunities for SMEs.
Catalysing Growth and Income 47
SUMMARY SME MASTERPLAN 2012-2020 48 Y SME MASTERPLAN 2012-2020 What is in store for SMEs? The Masterplan has proposed 32 initiatives, including six High Impact Programmes (HIPs) and four thematic measures. The HIPs are very important as they will contribute significantly towards achieving the goals of the Masterplan. Recognising the unique business environment in East Malaysia, the Masterplan has also proposed specific measures for SMEs in East Malaysia.
Catalysing Growth and Income 49 Six High Impact Programmes that Make a Difference Some of these High Impact Programmes (HIPs) would be essentially managed and delivered by the private sector, but will be owned by a Ministry or Agency. The lead Ministry or Agency will report the progress and outcomes in terms of increase in sales, profits, investments, productivity and other key indicators through the Central Coordinating Agency to NSDC. HIP 1: Integration of Business Registration and Licensing aims to create a single registration point through interfacing of the current National Business Registration System i.e. My Corporate Identity (MyCoID) with the National Business Licensing System i.e. Business Licensing Electronic Support System (BLESS). The initiative is to simplify procedures to reduce the lag time and costs involved in starting a new business. The initiative will also enhance formalisation as registration will be mandated as a pre-requisite for licensing.
SUMMARY SME MASTERPLAN 2012-2020 50 HIP 2: Technology Commercialisation Platform (TCP) is a national network of privately-managed platform to promote innovative ideas from proof of concept (POC) to the commercialisation stage. TCP aims to remove market barriers to innovation by providing linkage to a range of services including infrastructure support, financing, technical assistance, market information and capacity building. HIP 3: SME Investment Programme (SIP) is to provide early stage financing through the establishment of investment companies which would invest in potential SMEs in the form debt, equity or a hybrid of both. This will expedite the growth of venture capital industry in the country that can support start-ups, especially innovative SMEs.
Catalysing Growth and Income 51 HIP 4: Going Export (GoEx) Programme offers customised assistance to new exporters and SMEs venturing into new markets. Export-ready SMEs can avail to comprehensive support which among others include linkage to market expertise and buyers, and compliance to standards to expedite internationalisation of products and services.
SUMMARY SME MASTERPLAN 2012-2020 52 HIP 5: Catalyst Programme is to create homegrown champions through a targeted approach with support in the area of financing, market access and human capital development. The Programme will have transparent selection criteria and exit mechanism.
Catalysing Growth and Income 53 HIP 6: Inclusive Innovation is specifically designed to empower the bottom 40% of the income group to leverage on innovation. This Programme will promote transformation of communities including microenterprise in the rural areas through handholding as well as financial, technical and management support. Paddy Processing Machine Invented by Bau anak Lumpuh from Sarawak using recycled Honda electric engine.
SUMMARY SME MASTERPLAN 2012-2020 54 Y SME MASTERPLAN 2012-2020 A New Beginning The SME Masterplan signifies a new beginning in an effort to bring SME development to the next level. This would require a differentiated approach with the overall vision of the Plan of creating a new breed of SMEs that are globally competitive. The six HIPs are critical in making the Plan a success, together with other complementary measures to address current constraints to growth of SMEs. The Action Plan would be driven by the private sector, while the Government will take the role as a facilitator and catalyst in creating the enabling environment required for SMEs. Programmes will be monitored, evaluated and fine-tuned to optimise their outcomes and provide the basis for effective policy making. With such a comprehensive framework in place, the key challenge now lies in the implementation of the Plan which will require a shift in the mindset of all stakeholders in the Masterplan to make this a reality.
annex Catalysing Growth and Income 55
SUMMARY SME MASTERPLAN 2012-2020 56 Summary of Action Plan : 32 Initiatives 6 High Impact Programmes Key Performance Indicator1 Goal Targets 1 Integrate registration and licensing of business establishments to enhance ease of doing business Time/cost to start new business 2 Establish Technology Commercialisation Platform to comprehensively integrate SMEs and start-ups into the national innovation system No. of commercialised ideas 3 Rejuvenate non-banking funding eco-system to provide early stage financing through the SME Investment Programme (SIP) No. of companies funded 4 Establish Going Export (GoEx) Programme to expedite internationalisation of SMEs No. of companies exporting 5 Initiate Catalyst Programme to provide comprehensive support to SMEs with high growth potential to become homegrown champions No. of high growth firms 6 Foster Inclusive Innovation i.e. 'Innovation targeted at masses' and 'Innovation from grassroots' to empower the bottom 40% of the income pyramid No. of innovative ideas supported 1 The key performance indicator is an example and not exhaustive Increase business formation Expand number of high growth and innovative firms Raise productivity Intensify formalisation
Catalysing Growth and Income 57 4 Thematic Measures Key Performance Indicator1 Goal Targets Theme 1 : Promote resource pooling and shared services to overcome scale disadvantages 7 Encourage Consortiums and Aggregation Service Providers for bulk purchase and to help consolidate and market SME products and services No. of consortiums established 8 Establish Logistics Consolidation Centres to assist SMEs pool demand and resources to overcome low volume and infrequent shipment limitations No. of Centres established 9 Enhance Human Resources (HR) and Organisational Development (OD) support for better employee attraction and retention by SMEs Setting up of OD academy Theme 2 : Create demand for SME products and services for greater market access 10 Mandate a specific Government procurement policy for SMEs Policy established 11 Encourage MNCs to procure from SMEs through the vendor development programme Value of ETP projects awarded to SMEs 12 Provide financial support to enable SMEs to comply with market requirements of standards and certification No. of SMEs with certification
SUMMARY SME MASTERPLAN 2012-2020 58 Key Performance Indicator1 Goal Targets Theme 3 : Reduce information asymmetry for enhancing opportunities 13 Enhance current credit information system to address information asymmetry, i.e. to include Goverment funding More comprehensive credit information 14 Foster greater Intellectual Property (IP) adoption among SMEs through better awareness and advisory No. of IP filings by SMEs 15 Establish Independent Panel of Experts (IPEs) comprising industry experts to assist financial institutions to evaluate new technology projects No. of SME applicants utilising IPEs 16 Effective outreach to enhance financial inclusion No. of SMEs reached out each year Theme 4 : Building capacity through knowledge acquisition and skills upgrade 17 Ensure industry readiness of new entrants into workforce % of new entrants absorbed in related industry 18 Transform polytechnics and technical fields into a career of choice No. of twinning Polytechnics 19 Tap-on talent from abroad to address skills shortage among SMEs No. of Govt. scholars joining SMEs 20 Intensify human capital training programmes to meet specialised skill needs No. SME employees trained
Catalysing Growth and Income 59 Measures for East Malaysia Key Performance Indicator1 Goal Targets 21 Improve connectivity within East Malaysia and with Peninsular Malaysia Average speed and cost of cargo delivery 22 Improve basic amenities in East Malaysia through increased investments and enforcement Improved basic amenities 23 Improve Government delivery to address administrative challenges Average turn-around- time of Government delivery 24 Ease market access for SMEs through deregulation, provision of aggregation infrastructure and better enforcement of informal sector Deregulation completed 25 Review laws and policies taking into consideration market realities in East Malaysia Review completed 1 The key performance indicator is an example and not exhaustive Increase business formation Expand number of high growth and innovative firms Raise productivity Intensify formalisation
SUMMARY SME MASTERPLAN 2012-2020 60 Other Supporting Measures Key Performance Indicator1 Goal Targets 26 Re-orient existing efforts towards the creation of an integrated and effective trade clearance and facilitation system National Single Window implemented as per original vision 27 Review tax regime for SMEs with a view to remove disincentives for growth Policy reviewed and impact assessed 28 Amendments to Bankruptcy Law to give entrepreneurs a second chance Law amended 29 Synchronise measures to encourage productivity enhancement technologies and processes by SMEs with other relevant labour policies No. of SMEs adopting technology 30 Ensure greater commercial alignment in research focus of public and private institutions to meet industry needs No. of research projects with SME involvement 31 Expedite growth of venture capitalists, angels and risk capital to create a more vibrant funding environment No. of companies funded 32 Revitalise role of overseas trade offices No. of overseas offices with SME services 1 The key performance indicator is an example and not exhaustive Increase business formation Expand number of high growth and innovative firms Raise productivity Intensify formalisation
Catalysing Growth and Income 61 Definition of SMEs The definition of SMEs is based on two criteria: • The total sales turnover/revenue of a business in a year; OR • The number of full-time employees of a business. Generally SMEs in Malaysia are defined as follows: • Manufacturing sector: Sales turnover of less than RM25 million OR full-time employee of less than 150 • Services and other sectors: Sales turnover of less than RM5 million OR full- time employee of less than 50 Detailed definition by category namely Micro, Small and Medium is as follows : Annual Sales Turnover: Size Manufacturing (including agro-based) & manufacturing- related services Primary Agriculture Services Sector (including ICT) Micro Less than RM250,000 Less than RM200,000 Less than RM200,000 Small From RM250,000 to less than RM10 million From RM200,000 to less than RM1 million From RM200,000 to less than RM1 million Medium From RM10 million to less than RM25 million From RM1 million to less than RM5 million From RM1 million to less than RM5 million Number of Full-Time Employees: Size Manufacturing (including agro-based) & manufacturing- related services Primary Agriculture Services Sector (including ICT) Micro Less than 5 employees Less than 5 employees Less than 5 employees Small From 5 to less than 50 employees From 5 to less than 20 employees From 5 to less than 20 employees Medium From 50 to less than 150 employees From 20 to less than 50 employees From 20 to less than 50 employees
Pertama kali diterbitkan pada tahun 2012 Untuk maklumat lanjut, sila hubungi: SME Corporation Malaysia Sekretariat kepada Majlis Pembangunan PKS Kebangsaan Alamat : Tingkat 6, SME 1, Blok B Lot E, Jalan Stesen Sentral 2 Kuala Lumpur Sentral 50470 Kuala Lumpur Tel : 603-2775 6000 Faks : 603-2775 6001 atau layari laman sesawang SME Corp. Malaysia : www.smecorp.gov.my atau portal SMEinfo : www.smeinfo.com.my HAK CIPTA TERPELIHARA. Tiada bahagian daripada penerbitan ini dibenarkan untuk diterbitkan semula tanpa kebenaran bertulis daripada penerbit. Segala usaha telah diambil bagi memastikan maklumat yang terkandung adalah tepat pada masa penerbitan. _________________________________________________________________________ First published in 2012 For further information, please contact: SME Corporation Malaysia Secretariat to the National SME Development Council Address : Level 6, SME 1, Block B Lot E, Jalan Stesen Sentral 2 Kuala Lumpur Sentral 50470 Kuala Lumpur Tel : 603-2775 6000 Fax : 603-2775 6001 or visit SME Corp. Malaysia's website : www.smecorp.gov.my or SMEinfo portal : www.smeinfo.com.my ALL RIGHTS RESERVED. No portion of this publication may be reproduced without written permission from the publisher. Every effort has been made to ensure that the information contained herein is correct at the time of publication.
Contents Foreword by YAB Prime Minister i. Executive Summary 5 _________________________________________________________________________________ ii. Chapters _________________________________________________________________________________ • Chapter 1 : The Need for a 'Game Changer' 15 • Chapter 2 : Structural Characteristics of Malaysian SMEs 27 • Chapter 3 : Impact Assessment on SME Development Programmes 39 • Chapter 4 : Forces that Drive SME Performance 49 • Chapter 5 : New SME Development Framework 61 • Chapter 6 : Future Growth Opportunities for SMEs 71 • Chapter 7 : Action Plan to Accelerate Growth 83 • Chapter 8 : Implementation and Institutional Capacity Building 109 • Chapter 9 : A New Beginning 119 iii. Annex _________________________________________________________________________________ • Summary of Action Plan : 32 Initiatives 124 • Definition of SMEs 127 76938_i-82.indd Sec1:176938_i-82.indd Sec1:1 5/15/12 5:44 PM5/15/12 5:44 PM
SME MASTERPLAN 2012-2020 5 Executive Summary 76938_i-82.indd Sec1:576938_i-82.indd Sec1:5 5/14/12 12:19 PM5/14/12 12:19 PM
SME MASTERPLAN 2012-2020 6 Small and medium enterprises (SMEs) including microenterprises have played an important role in fostering growth, employment and income, and have been integral to Malaysia’s economic transformation process. Going forward, amidst the changing external environment and growing global competition, Malaysia requires a 'game changer' to transition the economy to a high income nation by 2020. In the last few years, SMEs have witnessed a marked improvement in their performance. Real Gross Domestic Product (GDP) of SMEs has consistently outperformed that of the overall economy, expanding at an average annual growth rate of 6.8% versus 4.9% for the overall economic growth in the period 2004 – 2010. This was due mainly to definitive policies by the Government through the National SME Development Council (NSDC). The Council has laid a solid foundation in SME development via a comprehensive framework that brought together more than 15 Ministries and 60 Agencies to work towards a common objective. SME Masterplan as the 'Game Changer' Going forward, SMEs will assume a greater role in the economy not only as an enabler but as a key driver of growth as well as to achieve inclusive and balanced growth. SMEs are critical to the economic transformation as they form the endogenous source of growth and bedrock of private sector activity. SMEs also stimulate innovation and act as stabilisers of growth during an economic slowdown. Hence, it is vital to build a strong base of vibrant and competitive SMEs that are resilient to challenges, including pressures arising from liberalisation of markets. Meeting the Vision 2020 of a high income nation is a challenging task and a fresh approach is required to accelerate the growth of SMEs. The aim is to increase the contribution of SMEs to the economy. This would necessitate a quantum leap in growth and transformation to higher value-added activities that are knowledge intensive. The SME Masterplan will therefore be the 'game changer' in navigating the new development path for SMEs across all sectors until 2020. The new strategy will build on existing initiatives for SMEs by strengthening the current framework and to align to the macro policy reforms. Executive Summary 76938_i-82.indd Sec1:676938_i-82.indd Sec1:6 5/14/12 12:19 PM5/14/12 12:19 PM
Catalysing Growth and Income 7 A New Approach to SME Development The SME Masterplan will take a very different approach from previous strategies. It will be based on evidence and sound analysis. The Masterplan will adopt an outcome-based approach in SME development by putting in place a comprehensive Monitoring and Evaluation (M&E) system. It will be a 'live plan' that can be fine-tuned to remain relevant with changing times. Programmes will be demand-driven, catering to the business needs of SMEs. The programmes are specifically aimed at addressing market imperfections and information asymmetry, and will have a clear timeline for exit. The Masterplan also has a strong element of public-private partnership and hence, encouraging shared responsibility and accountability between Ministries and Agencies and the private sector. Meanwhile, the Government would act as facilitator and catalyst, creating an enabling environment and ecosystem for SMEs to thrive by encouraging entrepreneurship, innovation and investment. Diverse Nature of Malaysian SMEs SMEs constitute 99.2% of total business establishments in the country. Based on the latest statistics, SMEs contribute 32% of GDP, 59% of employment and 19% of exports. Bulk of the SMEs (87%) are in the services sector, followed by manufacturing (7%) and agriculture (6%). Microenterprisesrepresentmajority(79%)ofSMEs. By location, most of the SMEs operate in the Klang Valley (35.7%), followed by Johor (10.3%), Perak (8%) and Kedah (6.8%). The Masterplan revealed four key characteristics of SMEs in Malaysia which include: • Low productivity compared to those in the region and more advanced countries. The productivity of Malaysian SMEs which is estimated to average RM47,000 in 2010, is about one-third of large enterprises (RM148,000). When compared internationally, SMEs in Singapore and the United States are four times and seven times more productive respectively than Malaysian SMEs; • Lower business formation than high income countries. The Masterplan uses average entry density to gauge the business dynamism and entrepreneurship level which reflect the rate of business formation. It is found that Malaysia stands relatively high among emerging markets, but substantially below that of high income countries due partly to lack of perceived entrepreneurship capabilities; 76938_i-82.indd Sec1:776938_i-82.indd Sec1:7 5/14/12 12:19 PM5/14/12 12:19 PM
SME MASTERPLAN 2012-2020 8 • Small number of firms contributes the most to the economy. Findings showed that fast-growing firms accounted for 70% of the additional GDP and 46% of the additional employment created in the period 2000 – 2005; and • Material share of informal sector in the economy. It is estimated that the informal sector accounts for about 31% of the Gross National Income (GNI) and these are usually microenterprises where the owners are self- employed with very few partners. Positive Impact of SME Development Programmes During the Ninth Malaysia Plan period (2006 – 2010), a total of RM26 billion was spent in SME development programmes, representing 11.6% of the total development expenditure during the period. The programmes were aimed to address constraints faced by SMEs and are categorised under the three strategic thrusts, namely enhancing access to financing; building capacity and capability; and strengthening enabling infrastructure. While there was evidence on the impact of these programmes at the macro level as seen in the encouraging performance of SMEs in recent years, there was uncertainty on whether the result was due to the effectiveness of the programmes or merely from the synergistic effects of improved coordination under NSDC or due to both reasons. For the first time, the Government in collaboration withtheWorldBankundertookanimpactevaluation involving rigourous technical assessment on 15 SME development programmes. The findings showed positive results from these programmes. In particular, the Human Resource Development Fund (HRDF) had shown a strong positive impact on investment, capital intensity and productivity. The rest of the programmes on non-human resource development had also indicated positive impact on capital intensity, total factor productivity (TFP), employment, as well as total output and value-added. The analysis concluded that every 1% increase in programme support will result on average 1 - 5% gain in performance. However, there was limited impact on labour productivity and no impact on wages. 76938_i-82.indd Sec1:876938_i-82.indd Sec1:8 5/14/12 12:20 PM5/14/12 12:20 PM
Catalysing Growth and Income 9 Growth Levers for SMEs In order to accelerate the performance of SMEs to the next level, it is important to understand the forces that drive SME performance. Analysis of findings from the World Bank Productivity and Investment Climate Surveys has revealed that there are six factors which influence the performance of Malaysian SMEs, namely: • Innovation and technology adoption; • Human capital development; • Access to financing; • Market access; • Legal and regulatory environment; and • Infrastructure. Currently SMEs are not achieving high performance due to challenges faced in each of these areas (refer to Chart 1). Of importance, these challenges need to be addressed simultaneously to achieve the desired results as shortcomings from any of these factors can weigh down on the overall growth prospects of SMEs. The aim of the Masterplan is to address these challenges to unleash the growth potential of SMEs to achieve Vision 2020. 76938_i-82.indd Sec1:976938_i-82.indd Sec1:9 5/14/12 12:20 PM5/14/12 12:20 PM
SME MASTERPLAN 2012-2020 10 New SME Development Framework Aligning to National Aspiration The Masterplan has proposed a new framework to align SME development to the broader national aspirations of achieving a high income economy by 2020 via innovation-led and productivity-driven growth (refer to Chart 2). There are five elements to the new framework, namely vision, goals, focus areas, action plan and the institutional support. Each of these goals has specific targets that need to be met in order to achieve the macro targets in terms of SME contribution to GDP, employment and exports by 2020: • 41% share of GDP (2010: 32%); • 62% share of employment (2010: 59%); and • 25% share of exports (2010: 19%). newframework 76938_i-82.indd Sec1:1076938_i-82.indd Sec1:10 5/14/12 12:20 PM5/14/12 12:20 PM
Catalysing Growth and Income 11 Growth Opportunities in High Value Activities The services sector is expected to be the main growth driver of the economy, with its share to GDP projected to rise to 65% by 2020. The on-going liberalisation measures will result in new challenges for SMEs in the sector and at the same time, it will also usher new opportunities. Thus, SMEs must prepare themselves to face the challenges and build their capacity and capability to reap the benefits of liberalisation. SMEs are also poised to benefit from the National Key Economic Areas (NKEAs) announced by the Government. About 60% of the Entry Point Projects (EPPs) earmarked are expected to benefit SMEs across all sectors. The challenge is for SMEs to migrate from the current back-end of the value chain in the NKEAs, i.e. from the low to medium value-added activities to higher end of the chain. The SME Masterplan is expected to spur recalibration of activities towards high value activities as in Chart 3. 76938_i-82.indd Sec1:1176938_i-82.indd Sec1:11 5/14/12 12:20 PM5/14/12 12:20 PM
SME MASTERPLAN 2012-2020 12 The initiatives were reviewed further to check on relevancy, impact, priority and alignment to the Plan. Finally, 32 initiatives have been identified under the Action Plan, which include six High Impact Programmes (HIPs) that would make the difference in meeting the goals of the Masterplan. Hence, it is critical to ensure that the HIPs are being successfully implemented. In addition, there are 14 other initiatives clustered under four thematic areas. Recognising the unique business environment in East Malaysia, the Masterplan has also proposed specific measures for SMEs in East Malaysia and other macro measures. Building Capacity Towards Implementation Success The most critical factor to ensure successful implementation of the SME Masterplan is the existence of a strong central agency to implement the Masterplan. Therefore, the role of SME Corporation Malaysia (SME Corp. Malaysia) will need to be further strengthened. This would require reorganisation of the existing structure and improvement in the coordination mechanism to allow greater empowerment to enable the Agency to function effectively in executing the Plan. SME Corp. Malaysia would need to be given sufficient authority and resources and have a more active role in the budgetary decision on SME development. The agency would also need to establish a comprehensive Monitoring and Evaluation (M&E) system besides devising a risk mitigation plan to ensure smooth implementation of the Plan. Accelerating Growth Through High Impact Programmes In order to achieve the ambitious targets set in the SME Masterplan, the initiatives under the Action Plan have to be impactful to bring about the desired results. These initiatives were based on the following eight guiding principles: • Consistent with the national strategic direction; • Addresses market failures and information asymmetry; • Catalyst to develop private service providers; • Avoid substituting private funds with public funds; • Ensure private sector involvement; • Results must be measurable; • Highest impact from funds; and • Clear accountability and delineation of roles. 76938_i-82.indd Sec1:1276938_i-82.indd Sec1:12 5/14/12 12:20 PM5/14/12 12:20 PM
Catalysing Growth and Income 13 A New Beginning for Greater Heights The SME Masterplan will set the stage for a new beginning to bring SMEs to the next level. The Plan has laid a clear path to achieve the ambitious goals aligned to the overall vision of creating globally competitive SMEs that enhance wealth creation and contribute significantly to the social well-being of the nation. The challenge lies in the execution of the Plan. This would require a paradigm shift in the mindset of all players involved in SME development to embrace the new approach and harness the growth potential of SMEs in the country. 76938_i-82.indd Sec1:1376938_i-82.indd Sec1:13 5/14/12 12:20 PM5/14/12 12:20 PM
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SME MASTERPLAN 2012-2020 15 chapter1 The Need for a 'Game Changer' 76938_i-82.indd Sec1:1576938_i-82.indd Sec1:15 5/14/12 12:20 PM5/14/12 12:20 PM
The Need for a 'Game Changer'116 Small and medium enterprises (SMEs) which include microenterprises, have been intrinsic to Malaysia’s economic transformation process. In the past, SMEs played an important role in fostering growth, employment and income. Through the lens of long-term development, Malaysia has been a success story, enjoying significant economic and social progress for several decades, thus facilitating a transition from a low-income to a middle-income nation. Currently the country faces the predicament of a 'middle-income' trap as the historical growth engines have moderated. Lower productivity growth accompanied by decline in private investment has lowered the potential output of the country. Breaking away from the 'middle-income' trap is further complicated by the changing global environment. Emergence of new economic powerhouses amidst the forces of globalisation and liberalisation have created a competitive marketplace, with intensive global competition for markets, capital and talent. At the same time, the world economy is expected to converge to a 'new normal' as the global rebalancing continues reflecting a more modest demand from the advanced economies. These shifts would not only pose challenges but would also spawn new opportunities for countries like Malaysia, especially from intra- regionaltradeandinvestment.Amidsttheuncertainexternalconditions,achieving Vision 2020 of a high income nation has become ever more challenging. This requires a 'game changer' or a new approach for a fundamental shift in the sources of Malaysia’s competitive advantage from low-cost to high-value. The Need for a 'Game Changer' 76938_i-82.indd Sec1:1676938_i-82.indd Sec1:16 5/14/12 12:20 PM5/14/12 12:20 PM
SME MASTERPLAN 2012-2020 17 TheGovernmenthasembarkedonaNewEconomic Model to transition the country to a high income nation. The aim is to achieve high income by 2020 that is both inclusive and sustainable. Income levels will be raised through productivity gains, while at the same time inclusiveness strengthened to benefit all Malaysians, and to ensure sustainability so that meeting present needs would not be at the expense of future generations. The challenge is to jointly achieve these goals and to ensure that the progress of one goal does not compromise the others. The reforms will be undertaken through the Economic Transformation Programme (ETP) that targets an average annual growth in Gross National Income (GNI) of 6%, with per capita income doubling from RM23,700 (USD6,700) in 2009 to RM48,000 (USD15,000) by 2020. The transition to a high income nation would also likely witness a change in the economic structure, characterised by an increasing dominance of services content in the economy and a move towards more knowledge- intensive and high value-added activities. SMEs Engine of Future Growth Going forward, the growth drivers are likely to shift. SMEs are expected to play as an important economic agent in achieving a high income nation. The role of SMEs will become increasingly critical, not only as enabler of growth by providing the support to large firms but also as a driver of economic growth. Malaysia’s integration with global production network involves upgrading of SMEs from second- and third-tier suppliers to first-tier suppliers who serve directly to the anchor companies in the value chain, namely large firms and multinational companies. At the same time, SMEs will be at the forefront as the Government focuses on growing these entities to become large homegrown champions that can compete internationally. SME development is also important in achieving a more balanced and inclusive growth, by addressing the bottom 40% of the income pyramid, which include microenterprises. SMEs are to assume a greater role in the economy not only as an enabler but as a key driver of growth as well as to achieve inclusive and balanced growth 76938_i-82.indd Sec1:1776938_i-82.indd Sec1:17 5/14/12 12:20 PM5/14/12 12:20 PM
The Need for a 'Game Changer'118 There are five reasons supporting why SMEs are critical in Malaysia’s development path moving ahead. • First, given the less reliable external environment, SMEs will be the driving force to generate the endogenous source of growth. A strong and vibrant SME base can benefit from and contribute to the growth in domestic demand. Demand for SME products and services will be supported by rising consumer affluence in the region; • Second, given that SMEs account for 99% of all businesses in the country, they will form the bedrock of private sector dynamism as the focus moves to private sector-led growth; • Third, SMEs also represent an important source of innovation to spearhead frontier technology and growth of new industries and services; • Fourth,itisvitaltobuildastrongbaseofvibrant and competitive SMEs that are resilient to challenges arising from liberalisation of markets. Of significance, the liberalisation of the services sector where there is strong presence of SMEs will require domestic capacity building to avoid hollowing out of existing players due to competitive pressures and facilitate the shift towards a services- based economy; and • Finally, during economic shocks, SMEs act as stabilisers of growth. In the recent 2008/2009 global economic and financial crisis, Malaysian SMEs had proven to be more resilient than their larger counterparts. Building on Past Success In the last decade, there has been a discernible shift in growth trends of SMEs. While prior to 2004, Gross Domestic Product (GDP) growth of SMEs mirrored that of the overall economy (refer to Chart 1.2), in the subsequent period of 2004 - 2010, GDP growth of SMEs has consistently outperformed the overall economic growth. Real GDP of SMEs expanded at an average annual growth rate of 6.8% versus 4.9% for the overall economy. The growth was supported by productivity gains and growth in employment (refer to Chart 1.3) as these two parameters also outperformed that of the overall economy. 76938_i-82.indd Sec1:1876938_i-82.indd Sec1:18 5/14/12 12:20 PM5/14/12 12:20 PM
SME MASTERPLAN 2012-2020 19 Definitive Government policies have been instrumental for the rapid growth of SMEs. In 2004, SME development came to the forefront with the establishment of a high level body, namely the National SME Development Council, which is chaired by the Prime Minister. During this period, a solid foundation was laid. A comprehensive institutional framework was put in place to oversee coordinated efforts among more than 15 Ministries and 60 Agencies in pursuing a common objective. A standard definition for SMEs was enforced across the Ministries and Agencies. Reducing overlaps and streamlining of policies had enhanced effectiveness, delivery and outreach. SME programmes were focused on strengthening the enabling infrastructure, enhancing access to financing, and building capacity and capability. At the same time, growth was also due to other supportive public policies, namely enhancement to the Government delivery system; promotion of tourism activities; rejuvenation of the agriculture sector; and focus on small contractors to ensure that they benefited from public infrastructure projects. The positive results in the last few years showed that SME development was heading in the right direction. However, to achieve a high income nation, there is still a wide gap with other developed nations. Contribution of SMEs to GDP in Malaysia remains under-represented, accounting for about 32% in 2010 (2000: 28.8%), lagging behind other middle-income nations (average of 39%; Chart 1.4). 76938_i-82.indd Sec1:1976938_i-82.indd Sec1:19 5/14/12 12:20 PM5/14/12 12:20 PM
The Need for a 'Game Changer'120 New Approach to SME Development A fresh approach is required to accelerate the growth of SMEs and to ensure a more meaningful contribution to the economy. The new strategy is built on the existing initiatives for SMEs by strengthening the current framework and to align to the macro policy reforms and in meeting the needs of the changing global environment. Furthermore, given the Government’s commitment to bring down the fiscal deficit to 3% of GDP by 2015 (2011: 5%), emphasis will be on prioritisation of programmes and ensuring greater efficacy through an outcome- based approach. Future SME development programmes will be focused on those that have impactful outcomes. SME development will also see greater private sector participation through partnerships to achieve the intended goals. Masterplan to Navigate Policy Direction The new strategy, encapsulated in the SME Masterplan (2012 - 2020) would navigate the policy direction of SMEs for the next nine years. The Masterplan will be anchored to the bigger policy framework of the ETP and the Tenth Malaysia Plan, and complementing existing initiatives such as the Bumiputera Transformation Programme, Rural Transformation Programme, and the corridor development programmes. The SME Masterplan is for all SMEs in Malaysia, irrespective of sector, gender, geographical region and ethnic background 76938_i-82.indd Sec1:2076938_i-82.indd Sec1:20 5/14/12 12:20 PM5/14/12 12:20 PM
SME MASTERPLAN 2012-2020 21 Essentially, the SME Masterplan will be relevant to all SMEs, across sectors and strategic areas. The Masterplan is aimed at unleashing the untapped potential of SMEs to enable the quantum leap in growth and for a consequent increase in contribution of SMEs to GDP. The focus would be to create an enabling ecosystem to accelerate the growth of SMEs through productivity gains and to bring them to the next level of development. The country would require a strong base of thriving SMEs that can support the growth of the economy. Thus, the Plan advocates for measures to enhance the legal and regulatory environment to be conducive for the formation, growth and exit of SMEs; foster innovation among SMEs; ensure creditworthy and innovative SMEs have access to financing; upgrade management capabilities of SME owners and worker competencies; improve market access for SME products and services; and enhance the physical infrastructure for SMEs to operate effectively. The approach to the SME Masterplan is very different from the past. The Plan is drawn based on evidence and sound analysis. There is clarity and alignment between the action plan, goals and the overarching vision of the Masterplan. The new elements in the Masterplan are: i. Outcome-based approach through a proper Monitoring and Evaluation (M&E) system established not only to guide sound decisions on budgeting, but also to assess progress of programmes and to fine-tune where necessary; 76938_i-82.indd Sec1:2176938_i-82.indd Sec1:21 5/14/12 12:20 PM5/14/12 12:20 PM
The Need for a 'Game Changer'122 ii. The 'live plan' concept is core to the Masterplan. The basic premise is that the Action Plan is not 'cast in stone' for the next nine years. Programmes may need to be fine- tuned due to changes to the environment or problems in the implementation through the feedback loop of the M&E mechanism, thus allowing for evidence-based course of actions. Hence, the Masterplan will remain relevant with changing times; iii. Programmes will be demand-driven, meeting the business needs of SMEs. The Action Plan and design of programmes is co- created with relevant stakeholders through a consultative approach, and monitored and evaluated regularly to ensure success; iv. The Masterplan advocates strong public- private partnership. Programmes will no longer be the sole responsibility of the Government. Programmes can be managed by the private sector but owned by a Ministry or an Agency. The role of associations and chambers would go beyond advocacy to include outreach and capacity building, similar to those in many advanced economies. This would entail shared responsibility and accountability among Ministries and Agencies and the private sector through well defined key performance indicators (KPIs); v. Programmes will be time-bound to address market imperfections and information asymmetry. In other words, specific needs of SMEs that currently cannot be met or offered by the private sector will be taken up by the Government. Over time, the policy actions would have addressed these needs paving the way for market creation and thus providing the Government with a clear exit path towards market-driven continuity; and vi. The Masterplan also proposes not only benchmarking against the best practices in other countries but also best performers in the country. SME Ecosystem in a Developed Nation Expanding the pool of knowledge-intensive and innovative SMEs will be the key element of the economic transformation. The existing policies, regulations, institutional structures, practices, mindset and attitudes while have been successful in the past will have to change and evolve as the Plan is implemented. These will manifest into the creation of an ecosystem similar to those in developed nations. Among the key characteristics of the desired SME ecosystem are: • Existence of a strong enterprise culture which favours productivity, efficiency, environmental consciousness, quality jobs, equitable social practices, as well as sound labour and industrial relations; • Strong entrepreneurial and innovation culture shaped through social and cultural changes (positive attitude to risk taking) by way of education and entrepreneurial development; • Active national innovation system encouraging strong local linkages between universities, technology centres, incubators, financiers and firms, including SMEs; 76938_i-82.indd Sec1:2276938_i-82.indd Sec1:22 5/14/12 12:20 PM5/14/12 12:20 PM
SME MASTERPLAN 2012-2020 23 • Strong non-banking financing, namely private equity, venture capital and business angels to foster early stage development and innovative firms; • Effective value chain network linking large firms to SMEs; • Effective support services for SMEs by the public sector (nationwide support centres for SMEs) and newly developed private service providers; and • Effective M&E system to assess impact of all initiatives. Government as Facilitator and Catalyst The Government’s role would be to create an enabling environment and ecosystem for SMEs to thrive by encouraging entrepreneurship, innovation and investment. Of significance, the Government’s role would be to act as facilitator and catalyst. SMEs recognised as an important economic agent will be given opportunities for access to resources. The Government would also formulate and implement laws and regulations that support the activities of SMEs. In areas where there are gaps that constrain the growth of SMEs, the Government will intervene in providing specific programmes as well as assistance in the form of financial and business support services to achieve specific development outcomes outlined in the Masterplan. 76938_i-82.indd Sec1:2376938_i-82.indd Sec1:23 5/14/12 12:20 PM5/14/12 12:20 PM
The Need for a 'Game Changer'124 Evidence-based Plan Focused on Delivery The SME Masterplan (2012 – 2020) would be the first long-term plan for SME development for the country. The Plan is comprehensive, encompassing the broad strategy and policy framework going forward based on empirical evidence and analysis of the current state of SMEs. For the very first time, a quantitative impact study of the existing Government programmes was undertaken to evaluate the effectiveness of programmes, thus paving the way for an outcome- based approach going forward. The Plan unveils a New SME Development Framework defining a clear path ahead premised on a common vision for SMEs and the required goals to achieve this vision, which supports the overarching objectives of the country in attaining a high income nation by 2020. Both, top-down and bottom-up approaches were taken in developing the Masterplan. The visioning was based on the broader policy aspirations at the national level. The bottom-up approach was through stakeholder engagement involving co- creation, validation and ratification process. Central to the Plan are the recommendations including adopting proven best practises from other countries that are suitable in the Malaysian context and more importantly looking into the implementation issues to ensure the success of the Plan. The recommendations are in the form of a comprehensive Action Plan comprising six High Impact Programmes and other complementary initiatives that address constraints preventing Malaysian SMEs from performing their best. The empiricalevidencehasidentifiedthemostimportant growth levers that influence the performance of SMEs. It is emphasised that shortcomings in all these levers need to be addressed simultaneously or any one factor can weigh down on the overall performance prospects of SMEs. The Plan also looks into the institutional capacity and support that need to be strengthened to facilitate the implementation of the Masterplan. This includes putting in place an effective M&E system and recommendations on the structural changes to the current institutional framework to execute the Plan. 76938_i-82.indd Sec1:2476938_i-82.indd Sec1:24 5/14/12 12:20 PM5/14/12 12:20 PM
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SME MASTERPLAN 2012-2020 27SME MASTERPLAN 2012-2020 27 chapter2 Structural Characteristics of Malaysian SMEs 76938_i-82.indd Sec1:2776938_i-82.indd Sec1:27 5/14/12 12:20 PM5/14/12 12:20 PM
Structural Characteristics of Malaysian SMEs228 Structural Characteristics of Malaysian SMEs Diverse Nature of SMEs As in other countries, small and medium enterprises (SMEs) in Malaysia are a very heterogeneous group. They are involved in activities ranging from petty traders, grocery store operators, medium-sized contract manufacturers supplying parts and components to multinational corporations and professional services such as software firms or medical researchers selling their services to overseas markets. SMEs also operate in different market environment such as urban, rural, online, physical, domestic, regional and international. These SMEs may be formal or in the informal sector and they possess different levels of skills depending on their activities. These elements form the characteristics of SMEs in Malaysia and the basis for policy response. Definition of SMEs varies across countries. In Malaysia, SMEs are defined based on two criteria, namely annual sales turnover and number of full-time employees of a business. For the manufacturing and manufacturing-related services, SMEs refer to enterprises with sales turnover of less than RM25 million or full-time employees of less than 150 workers, while for the services and the other sectors, SMEs are those with sales turnover of less than RM5 million or less than 50 workers. A business that fulfils either one of the criteria will be deemed as an SME. The definition for the micro, small and medium is in turn determined by different threshold of the criteria (see details in Annex). SME businesses can be legally structured as entities registered either under the Registration of Businesses Act 1956 (Act 197) or Companies Act 1965 (Act 125). 76938_i-82.indd Sec1:2876938_i-82.indd Sec1:28 5/14/12 12:20 PM5/14/12 12:20 PM
SME MASTERPLAN 2012-2020 29 Importance to the Economy SMEs contribute 32% of Gross Domestic Product (GDP), 59% of employment and 19% of exports. Basedonlateststatistics(CensusofEstablishments and Enterprises 2005), SMEs constitute 99.2% of total business establishments in Malaysia or totalling 548,267 enterprises. • Bulk of these SMEs (87%) are engaged in the services sector, while another 7% and 6% respectively are in the manufacturing and agriculture sectors. About 60% of total SMEs are in the distributive trade services sub- sector. • In terms of size, the majority or 79% are microenterpriseswithlessthan5workers(refer to Chart 2.1). Microenterprises are dominant mainly in the distributive trade services sub- sector (83.6% share of total establishments in this sub-sector) and agriculture (93.1%) sector. The manufacturing sector has a higher proportion of large enterprises relative to all other sectors. • Most of the SMEs are concentrated in the Klang Valley (Selangor and Federal Territory: 35.7% share of all SMEs) and followed by Johor (10.3%), Perak (8%) and Kedah (6.8%). While microenterprises are predominant in all states, their share to total SMEs is especially high in the eastern and northern states, namely Kelantan, Perlis, Terengganu, Kedah and Pahang where they make up 88 - 95% of all enterprises. • The share of SMEs is negatively correlated with the age of the company. In other words, a significant percentage of firms operating in the economy i.e. 45% are young, operating for less than 5 years. Only about 12% of the SMEs are above 20 years, indicating that many may have either exited or graduated to become large firms. The distribution differs for large firms, whereby 60% of the firms are above 10 years. • About 78% of the SMEs comprise sole proprietorships and partnerships, 21.3% are private limited companies, while only 0.2% are public listed companies (refer to Chart 2.2). This is opposed to large enterprises whereby majority or 94% are private limited or public listed companies. 76938_i-82.indd Sec1:2976938_i-82.indd Sec1:29 5/14/12 12:20 PM5/14/12 12:20 PM
Structural Characteristics of Malaysian SMEs230 SMEs employed some 3.7 million workers or 59% of total private sector employment. Two- thirds of the workers are in the services sector. As a substantial proportion of employment in the distributive trade sub-sector is accounted for by microenterprises, it is large enterprises that dominate in employment in the manufacturing, construction and mining sectors as well as in the finance and insurance services sub-sector. Wages increase with establishment size, as employees in larger enterprises are generally paid the highest and microenterprise the lowest. Wages by sub- sectors indicate that the highest paid employees are in the skilled areas, namely information and communication technology (ICT) sector, followed by financial services and healthcare services. Among microenterprises, the highest average wages is in healthcare services underpinned by doctors operating private clinics. Key Structural Characteristics It was recognised that there was a need to fully understand the structural characteristics of SMEs in Malaysia prior to developing the Masterplan. A diagnostic study by the World Bank on SMEs in Malaysia in 2010/2011 vis-á-vis its peers in the region and against more developed nations revealed four key characteristics, namely: • Productivity of SMEs was relatively low; • Business formation was lower than in high income nations; • Small number of firms accounted for bulk of the increase in GDP and employment; and • Material share of informal sector existed in the economy. (i) Low productivity While it is typical for SMEs to have lower labour productivity compared to their large counterparts even in high-income countries, the productivity gap in Malaysia between large firms and SMEs is significant. Studies have indicated that productivity growth has slowed down significantly after the Asian crisis due to decline in private investment, shortage of skilled workers and lack of innovative activity in the country. Malaysian SME productivity (value-added per worker) averaged RM44,000 in 2008. In 2010, SME productivity is estimated to have averaged RM47,000, about one-third of large estabishments (RM148,000). 76938_i-82.indd Sec1:3076938_i-82.indd Sec1:30 5/14/12 12:20 PM5/14/12 12:20 PM
SME MASTERPLAN 2012-2020 31 Even compared internationally, Malaysian SMEs are far less productive than those in high income countries. SMEs in Singapore are four times more productive than Malaysian SMEs, while SMEs in the United States are seven times more productive. The low productivity is due mainly to the current economic structure, whereby there is high concentration of microenterprises in the distributive trade services sub-sector with very low productivity level, hence, dampening the overall productivity in the services sector. However, average productivity in the manufacturing sector and the more specialised services such as financial services sub-sector is much higher. 76938_i-82.indd Sec1:3176938_i-82.indd Sec1:31 5/14/12 12:20 PM5/14/12 12:20 PM
Structural Characteristics of Malaysian SMEs232 (ii) Business formation rate lower than high income nations The rate of business formation is a reflection of private sector dynamism and the level of entrepreneurship in an economy. Entrepreneurship is important to foster competition and contribute to economic growth. In Malaysia, it is found that overall business formation, or the number of businesses established each year is relatively robust, averaging 288,400 in the period 2004 – 2011. However, the positive performance was due mainly to high number of newly registered sole proprietorship and partnership (86% share), which means that these are mainly very small businesses that plan to remain small and do not want significant exposure to liability. This was especially true when there was double-digit increase in formation of sole proprietorships and partnerships during the 2008/2009 global economic crisis as laid off workers sought self employment. Nevertheless, the number of newly registered companies remained small during the entire period. 76938_i-82.indd Sec1:3276938_i-82.indd Sec1:32 5/14/12 12:20 PM5/14/12 12:20 PM
SME MASTERPLAN 2012-2020 33 The World Bank uses entry density or newly registered limited liability enterprises as percentage of working age population (15-64 years) to gauge the business dynamism and entrepreneurship across countries. Malaysia stands out relatively high among emerging markets including the East Asia and Pacific region, but was still substantially below high income countries. The moderate interest in setting up limited liability companies in Malaysia could be partly linked to the relatively low level of entrepreneurship in the society. The 2011 Global Entrepreneurship Monitor (GEM) by the World Bank indicated that Malaysia compares less favourably vis-à- vis other countries due to the general lack of confidence and perceived capability in entrepreneurship. Findings by GEM indicated: • While a high number of respondents (74%) believe that the media pays attention to entrepreneurs and that successful entrepreneurs have high status in society and starting a business is a good career choice, only 37% saw good opportunities to start a business. Emerging markets (%) Developed countries (%) Media attention for entrepreneurship 74 82 76 65 50 57 62 47 n/a High status to successful entrepreneurship 51 86 73 69 78 55 67 81 n/a Entrepreneurship as a good career choice 52 86 73 73 55 26 61 52 n/a Perceived opportunities 37 43 49 57 35 6 11 33 36 Perceived capabilities 31 53 44 62 37 14 27 43 56 Fear of failure 30 31 36 27 42 42 45 36 31 Entrepreneurial intentions 9 28 43 46 6 4 16 9 11 Source : Global Entrepreneurship Monitor 2011 Malaysia Brazil China Chile Germany Japan Korea UK US 76938_i-82.indd Sec1:3376938_i-82.indd Sec1:33 5/14/12 12:20 PM5/14/12 12:20 PM
Structural Characteristics of Malaysian SMEs234 • About one-third indicated lack of perceived capabilities and another one- third stated 'fear of failure' as having to prevent them from starting a business. • Only 9% who were not involved in entrepreneurial activity before stated their intention to venture into a business. • In other developed and emerging countries such as the United States, United Kingdom, Chile and Brazil, about 40-60% of the respondents believed that entrepreneurs had the capabilities and in many of these countries, they had actual entrepreneurial intention. (iii) Small number of firms contributes the most to the economy A detailed technical analysis to understand firm level behaviour was undertaken using the most comprehensive database available, i.e. for manufacturing firms from the 2000 and 2005 census data. The findings showed that young and fast-growing firms accounted for a significant share of gains in GDP and employment. • About 42% of the firms that existed in year 2000 ceased operations by year 2005. So the survival rate was about 58%. The failure was most pronounced among microenterprises but there were also failures among large firms. • Of those in operation, these firms hired 4% more workers during this period. • There was some degree of movement of firms across categories, with some graduating to bigger firms and vice versa. While 14% of medium-sized firms grew to large firms by 2005, a comparable share fell back to small firms. Some 16% of the large firms exited and another 13% fell back mainly to medium and small firms by 2005. • Firms that began operations after year 2000 were responsible for the 90% of the net job creation in the manufacturing sector in the period 2000 - 2005. 76938_i-82.indd Sec1:3476938_i-82.indd Sec1:34 5/14/12 12:20 PM5/14/12 12:20 PM
SME MASTERPLAN 2012-2020 35 • Top 1 percentile of the fastest growing firms in terms of employment growth accounted for 70% of the additional GDP (RM65 billion) and 46% of the new jobs created (129,000) during the period 2000 - 2005. • These high growth firms were not limited to any particular sector or age group. Top performers were found across all the 19 manufacturing sub-sectors and across all age groups, with those under 5 years accounting for 16%. 76938_i-82.indd Sec1:3576938_i-82.indd Sec1:35 5/14/12 12:20 PM5/14/12 12:20 PM
Structural Characteristics of Malaysian SMEs236 • Of importance is that all the high growth firms regardless of age and sub-sectors were medium-sized indicating that medium-sized firms were very important job creators. This is not surprising given that it is extremely difficult for microenterprises and small firms to expand rapidly due to physical and management constraints. • It was also observed that the fastest growing firms existed in the most competitive sectors indicating that competitive pressure forced firms to innovate and shed outdated technologies. (iv) Material share of informal sector In all countries, there is always some segment of the economy that are not formalised. These are enterprises operating without formal registration. However, a country with vibrant SMEs corresponds with a reduced level of informal or 'black market' activities. Based on a study by Schneider (2002), it is estimated that a material share of SMEs in Malaysia, i.e. about 31% of the Gross National Income is informal. The informal sector refers to establishments in the non- agriculture activities that are not registered with the Companies Commission of Malaysia or that employ less than 10 workers which are not registered by social security. These are 76938_i-82.indd Sec1:3676938_i-82.indd Sec1:36 5/14/12 12:20 PM5/14/12 12:20 PM
SME MASTERPLAN 2012-2020 37 usually microenterprises where the owners are self-employed with one or few partners or work with family members and do not hire external workers. If just based on number of self-employed enterprises from the International Labour Office (ILO), then the estimate of the informal sector in Malaysia could be about 21% of total employment. Not only they do not contribute to GDP, these informal enterprises also do not usually pay taxes. As such, the informal sector usually creates a non-level playing field with the registered firms and deter fair competition and innovation from taking place. Informal sector is also linked to slow economic growth and poverty. As such, policies are usually designed to integrate the informal sector into the economic mainstream to fully tap their potential. These policies recognise the potential of the informal economy not only as an expression of need, and but more importantly to provide opportunity to these firms to have access to programmes and resources in order to contribute to the economy. 76938_i-82.indd Sec1:3776938_i-82.indd Sec1:37 5/14/12 12:20 PM5/14/12 12:20 PM
Structural Characteristics of Malaysian SMEs238 76938_i-82.indd Sec1:3876938_i-82.indd Sec1:38 5/14/12 12:20 PM5/14/12 12:20 PM
SME MASTERPLAN 2012-2020 39 chapter3 Impact Assessment of SME Development Programmes 76938_i-82.indd Sec1:3976938_i-82.indd Sec1:39 5/14/12 12:20 PM5/14/12 12:20 PM
Impact Assessment of SME Development Programmes340 Impact Assessment of SME Development Programmes Various Government Programmes Since the early years, the Government has devoted significant resources to extend programmes to SMEs mainly through the national development plans. More than 15 Ministries and 60 Agencies have been involved in implementing these programmes. The motivation of the programmes was to assist SMEs given that they lag behind large firms in many dimensions of performance due to their size. Among the key constraints faced by SMEs are in terms of management ability and skilled workforce; access to finance and markets; inability to exploit economies of scale and lack of bargaining power; and access to technology and innovation. Procedures and regulations also disproportionately affect SMEs compared to large firms. Hence, Government programmes have been designed to address these constraints to promote growth, enhance competitiveness and create employment, in addition to fulfilling the socio-economic needs of SMEs given the prevalence of microenterprises which represent the bottom 40%. These programmes were in the form of financial assistance such as soft loans and grants, and provision of subsidised or free business support services including training on entrepreneurship, management and skills, technology upgrading, productivity improvement, market development and export promotion. 76938_i-82.indd Sec1:4076938_i-82.indd Sec1:40 5/15/12 5:33 PM5/15/12 5:33 PM
SME MASTERPLAN 2012-2020 41 The National SME Development Council was established in 2004 mainly for greater policy coherence and coordination among the Ministries and Agencies towards achieving a common goal. Prior to that, different Ministries introduced programmes independently which often resulted in duplications or overlaps of programmes. The Council’s goal is to streamline programmes and to reduce duplications towards enhancing delivery and overall effectiveness of programmes. The Council is also responsible to formulate a common policy for SMEs in the country. In that regard, in the last seven years the Council has laid the foundation for a more holistic and comprehensive approach to SME development. Among its key achievements include: • Adoption of a standard SME definition nationwide; • Enhancement to the SME financing landscape; • Development of a comprehensive database on SMEs, including the Economic and SME Census 2011 (being finalised currently) and macro statistics; • Introduction of an annual plan on SME programmes and SME Annual Report to assess progress and development of SMEs; • Establishment of a holistic framework to coordinate SME programmes across Ministries and Agencies based on the three strategic thrusts, namely strengthening the enabling infrastructure; building capacity and capability; and enhancing access to financing; and • Setting up of a Central Coordinating Agency, i.e. SME Corporation Malaysia to oversee SME development. 76938_i-82.indd Sec1:4176938_i-82.indd Sec1:41 5/15/12 5:33 PM5/15/12 5:33 PM
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer
Malaysia SME Masterplan 2012 - 2020 the Game Changer

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Malaysia SME Masterplan 2012 - 2020 the Game Changer

  • 1.
  • 2.
  • 3. Batu permata berharga pada reka bentuk kulit menggambarkan kepentingan Program Berimpak Tinggi dan langkah pelengkap dalam mencapai lonjakan berganda dalam pertumbuhan dan pendapatan bagi menjayakan matlamat Pelan Induk PKS. Batu permata juga melambangkan sesuatu yang tersendiri bagi mencerminkan keunikan Pelan kerana ia merupakan 'pelan sepanjang hayat' yang akan terus relevan dengan perubahan masa. _________________________________________________________________________ The precious gems on the cover design depict significance of the High Impact Programmes and complementary measures in achieving the objectives of the SME Masterplan for a quantum leap in growth and income. The gems also signify rarity reflecting the uniqueness of the Plan as it is a 'live plan' that will remain relevant with changing times.
  • 4. “Jika kita tidak memperkenalkan ‘game changer’, kita akan terjerat dalam perangkap pendapatan sederhana, dan tidak lagi berdaya saing dari segi kos berbanding sesetengah negara lain.” “Melangkah ke hadapan, Kerajaan akan menerapkan pendekatan berbeza bagi menggiatkan pertumbuhan PKS dan menjadi pendorong pertumbuhan yang diterajui oleh sektor swasta.” “…ekonomi yang didorong oleh inovasi memerlukan suatu golongan baharu PKS yang boleh membantu mendorong inovasi yang dipacu pasaran dan teknologi bagi mewujudkan lebih banyak pekerjaan kemahiran tinggi dalam semua sektor ekonomi.” Dato' Sri Mohd Najib Tun Haji Abdul Razak Perdana Menteri Malaysia/ Pengerusi Majlis Pembangunan PKS Kebangsaan Petikan daripada Ucapan YAB Perdana Menteri
  • 5. Kandungan • Mengapakah kita memerlukan Pelan Induk PKS? 4 • Apakah status PKS di Malaysia? 8 • Apakah pendorong prestasi PKS? 10 • Bagaimanakah Pelan Induk PKS dapat mencapai 12 Wawasan 2020? • Apakah manfaat untuk PKS? 16 • Satu Permulaan Baharu 22 Lampiran • Ringkasan Pelan Tindakan : 32 Inisiatif 24 • Definisi PKS 30
  • 6.
  • 8. RINGKASAN PELAN INDUK PKS 2012-2020 4 AN PELAN INDUK PKS 2012-2020 Mengapakah kita memerlukan Pelan Induk PKS? Perusahaan kecil dan sederhana (PKS) termasuk perusahaan mikro memainkan peranan penting dalam mendorong pertumbuhan, guna tenaga dan pendapatan di Malaysia. Sejak beberapa tahun kebelakangan ini, PKS telah mencatat prestasi yang memberangsangkan. Keluaran Dalam Negeri Kasar (KDNK) PKS berkembang pada kadar purata pertumbuhan tahunan 6.8%, jauh melebihi purata KDNK keseluruhan sebanyak 4.9% dalam tempoh 2004 - 2010. Ini sebahagian besarnya hasil dasar sokongan yang diwujudkan oleh Kerajaan melalui Majlis Pembangunan PKS Kebangsaan (MPPK). Majlis yang dipengerusikan oleh YAB Perdana Menteri ini telah membina sebuah rangka kerja komprehensifyangmenyatukanlebih15Kementerian dan 60 Agensi untuk berusaha ke arah matlamat yang sama. Namun, melangkah ke hadapan, lantaran persekitaran global yang dilanda ketidakpastian dengan persaingan yang bertambah sengit, Malaysia memerlukan 'game changer' untuk beralih kepada sebuah negara berpendapatan tinggi menjelang tahun 2020. PKS adalah kritikal dalam proses transformasi ekonomi kerana ia merupakan sumber pertumbuhan domestik dan asas kepada aktiviti sektor swasta. PKS juga adalah penting dalam merangsang inovasi dan bertindak sebagai penstabil pertumbuhan semasa kelembapan ekonomi.
  • 9. Memangkin Pertumbuhan dan Pendapatan 5 Pelan Induk PKS sebagai 'Game Changer' Pelan Induk PKS akan bertindak sebagai 'game changer' dalam mempercepat pertumbuhan PKS bagi mencapai status negara berpendapatan tinggi menjelang tahun 2020. Pelan Induk ini adalah untuk semua PKS merentasi semua sektor, gender, wilayah geografi dan latar belakang etnik. Kejayaan dalam melaksanakan Pelan Induk bakal meningkatkan sumbangan PKS kepada ekonomi menjelang tahun 2020: • KDNK: 41% (2010: 32%); • Guna tenaga: 62% (2010: 59%); dan • Eksport: 25% (2010: 19%).
  • 10. RINGKASAN PELAN INDUK PKS 2012-2020 6 Peranan PKS dalam Ekonomi Melangkah ke hadapan, PKS bakal memainkan peranan yang lebih penting dalam ekonomi. PKS akan menjadi pemacu utama pertumbuhan dalam usaha Malaysia menjadi sebuah ekonomi berpendapatan tinggi. Di samping itu, PKS akan terus memainkan peranan sebagai pendorong pertumbuhan apabila meningkat daripada pembekal peringkat kedua dan ketiga pada ketika ini, kepada pembekal peringkat pertama dan membina hubungan dengan firma besar dalam rantaian pembekalan global. Pembangunan PKS juga adalah penting dalam mencapai pertumbuhan lebih seimbang dan terangkum, kerana Pelan turut memfokus kepada perusahaan mikro dan bahagian 40% terendah dalam piramid pendapatan. Keutamaan akan diberi kepada usaha memupuk PKS domestik, daripada peringkat permulaan kepada membantu perkembangan dan menjadi pemangkin pertumbuhan firma berpotensi tinggi yang berupaya menjadi juara negara yang dapat bersaing di pasaran serantau dan global. Dalam pada itu, bahagian 40% terendah dalam piramid pendapatan termasuk perusahaan mikro akan dibawa masuk ke dalam aliran utama ekonomi agar dapat meraih manfaat daripada bantuan Kerajaan dan proses transformasi ekonomi. Peralihan ini akan mengakibatkan perubahan kepada struktur ekonomi yang lebih cenderung kepada sektor perkhidmatan dan aktiviti berintensif pengetahuan dengan nilai ditambah yang lebih tinggi. PKS perlu mengubah sudut perspektif minda untuk bersiap sedia ke arah peralihan ini.
  • 11. Memangkin Pertumbuhan dan Pendapatan 7 Pendekatan Baharu bagi Pembangunan PKS Pelan Induk akan menerapkan pendekatan baharu bagi pembangunan PKS, iaitu pendekatan berasaskan hasil. Untuk itu, Pelan Induk akan membangunkan satu sistem Pemantauan dan Penilaian (Monitoring & Evaluation, M&E) yang menyeluruh bagi memastikan keberkesanan program. Buat kali pertama di Malaysia, Pelan Induk telah memperkenalkan konsep 'pelan sepanjang hayat' supaya ianya akan terus relevan dengan perubahan masa. Program mungkin perlu diubah suai dari semasa ke semasa agar bertepatan dengan perubahan alam sekitar dan struktur yang mungkin berlaku. Namun, visi, matlamat dan strategi keseluruhan tidak berubah. Pelan ini akan memenuhi keperluan perniagaan PKS dan bakal dilaksanakan dengan kerjasama sektor swasta menerusi perkongsian awam-swasta. Peranan persatuan industri, dewan perniagaan dan organisasi bukan kerajaan akan terus dipertingkatkan bagi membantu memperluaskan jangkauan program kepada lebih banyak PKS di negara ini dan membina kapasiti di peringkat daerah, negeri dan kebangsaan.
  • 12. RINGKASAN PELAN INDUK PKS 2012-2020 8 AN PELAN INDUK PKS 2012-2020 Apakah status PKS di Malaysia? PKS di Malaysia ditakrifkan berdasarkan dua kriteria, iaitu jumlah hasil jualan tahunan dan bilangan pekerja sepenuh masa sesebuah perniagaan (butiran di Lampiran). PKS merangkumi 99.2% daripada jumlah pertubuhan perniagaan di negara ini. Menurut statistik terkini, PKS menyumbang 32% daripada KDNK, 59% daripada guna tenaga dan 19% daripada eksport. Ciri-ciri Utama PKS Berdasarkan kajian untuk Pelan Induk ini, PKS di Malaysia memaparkan empat ciri utama seperti berikut: • Produktiviti yang rendah berbanding dengan firma besar di Malaysia dan PKS di negara maju. Produktiviti PKS bagi pekerja mencatat nilai purata RM47,000, kira-kira satu pertiga daripada produktiviti firma besar domestik. PKS di Amerika Syarikat dan Singapura masing- masing adalah tujuh kali dan empat kali lebih produktif berbanding PKS di Malaysia; • Kadar penubuhan perniagaan yang secara relatifnya lebih rendah berbanding negara berpendapatan tinggi. Pembentukan syarikat liabiliti terhad digunakan sebagai kayu pengukur
  • 13. Memangkin Pertumbuhan dan Pendapatan 9 bagi dinamisme sektor swasta dan tahap keusahawanan dalam sesebuah ekonomi. Meskipun penubuhan perniagaan di Malaysia agak pesat, sebagai besarnya adalah milikan tunggal dan perkongsian, manakala bilangan syarikat liabiliti terhad adalah kecil; • Sebilangan kecil firma yang mempunyai pertumbuhan tinggi menyumbang bahagian ketara kepada ekonomi. Penemuan kajian menunjukkan bahawa firma paling pesat berkembang menyumbang 70% daripada KDNK tambahan dan 46% daripada guna tenaga tambahan dalam tempoh 2000- 2005; dan • Bahagian sektor tidak formal yang ketara dalam ekonomi. Sektor tidak formal dianggarkan mencakupi 31% daripada Pendapatan Negara Kasar (Negara maju: 14%; AS: 9%; Singapura: 13%). Impak Positif Program Pembangunan PKS Buat pertama kali, Kerajaan dengan kerjasama Bank Dunia telah melaksanakan penilaian impak terhadap 15 program pembangunan PKS. Hasil penilaian menunjukkan bahawa program tersebut berjaya membuahkan hasil yang positif. Tabung Pembangunan Sumber Manusia (Human Resources Development Fund, HRDF) terutamanya telah memaparkan kesan amat positif dari sudut pelaburan, keamatan modal dan produktiviti. Program lain yang melibatkan pembangunan bukan sumber manusia turut menunjukkan impak positif terhadap jumlah output and nilai ditambah, keamatan modal dan produktiviti faktor menyeluruh (total factor productivitiy, TFP). Namun, impak terhadap produktiviti buruh adalah terhad manakala upah pula tidak terjejas.
  • 14. RINGKASAN PELAN INDUK PKS 2012-2020 10 AN PELAN INDUK PKS 2012-2020 Apakah pendorong prestasi PKS? Pemahaman tentang faktor yang mendorong prestasi PKS adalah penting dalam usaha melonjakkan pembangunan PKS. Berdasarkan analisis teknikal terhadap data Malaysia, Pelan Induk menyerlahkan enam faktor yang mempengaruhi prestasi PKS Malaysia, iaitu: • Penerapan inovasi dan teknologi; • Pembangunan modal insan; • Akses kepada pembiayaan; • Akses kepada pasaran; • Persekitaran perundangan dan kawal selia; dan • Infrastruktur. Semua pendorong prestasi ini perlu dipertingkatkan secara serentak kerana sebarang kelemahan dalam mana-mana pendorong tersebut akan menghalang PKS mencapai potensi sepenuhnya. Pada ketika ini, PKS masih belum berjaya mencatat prestasi tinggi ekoran cabaran tertentu dalam setiap bidang tersebut. Pelan Induk bertujuan menangani cabaran tersebut bagi meningkatkan prestasi pertumbuhan bagi mencapai Wawasan 2020.
  • 15. Memangkin Pertumbuhan dan Pendapatan 11
  • 16. RINGKASAN PELAN INDUK PKS 2012-2020 12 AN PELAN INDUK PKS 2012-2020 Bagaimanakah Pelan Induk PKS dapat mencapai Wawasan 2020? Pelan Induk menerapkan strategi dua serampang untuk menangani cabaran ini. Stategi yang berbeza akan diguna pakai bagi memenuhi keperluan semua PKS, daripada perusahaan mikro hingga ke perniagaan yang lebih canggih. Strategi pertama menggariskan langkah umum untuk membangunkan rangkaian bantuan menyeluruh bagi perusahan mikro dan membawa mereka masuk ke dalam aliran utama ekonomi dan menyumbang kepada pertumbuhan. Pada masa yang sama, Pelan ini menyarankan pendekatan tersasar untuk menggalakkan syarikat berinovasi dan mempunyai pertumbuhan tinggi merealisasi potensi maksimum dan untuk membawa PKS menceburi pasaran global.
  • 17. Memangkin Pertumbuhan dan Pendapatan 13 Rangka Kerja Baharu Pembangunan PKS Pelan Induk menyarankan satu rangka kerja baharu untuk menjajarkan pembangunan PKS kepada aspirasi nasional demi mencapai status ekonomi berpendapatan tinggi menjelang tahun 2020, melalui pertumbuhan yang dipacu oleh produktiviti dan inovasi. Rangka kerja baharu ini merangkumi lima elemen, iaitu visi, matlamat, bidang tumpuan, pelan tindakan dan sokongan keinstitusian. Setiap matlamat diiringi sasaran khusus yang perlu dipenuhi demi mencapai sasaran makro yang ditetapkan, dari segi sumbangan PKS kepada KDNK, guna tenaga dan eksport menjelang tahun 2020.
  • 18. RINGKASAN PELAN INDUK PKS 2012-2020 14 Peluang Pertumbuhan Masa Hadapan Sektor perkhidmatan bakal menjadi pemacu pertumbuhan masa hadapan, dengan sumbangan sebanyak 65% kepada KDNK menjelang tahun 2020. PKS perlu membina kapasiti dan keupayaan untuk menangani cabaran yang timbul daripada liberalisasi dan pada masa yang sama, merebut peluang baharu yang muncul. PKS juga bakal meraih manfaat daripada Bidang Ekonomi Utama Negara (National Key Economic Areas, NKEAs) yang diumumkan oleh Kerajaan. Kira-kira 60% daripada Projek Permulaan (Entry Point Projects, EPPs) yang dikenal pasti dijangka memanfaatkan PKS dalam semua sektor. PKS berdepan dengan cabaran untuk beralih keluar dari bahagian rantaian nilai rendah dalam NKEA, iaitu dari aktiviti nilai ditambah rendah hingga sederhana kepada rantaian nilai yang tinggi. Pelan Induk PKS dijangka merancakkan penjajaran aktiviti ke arah aktiviti nilai ditambah lebih tinggi sepertimana yang ditunjukkan dalam peluang pertumbuhan baharu PKS.
  • 19. Memangkin Pertumbuhan dan Pendapatan 15
  • 20. RINGKASAN PELAN INDUK PKS 2012-2020 16 AN PELAN INDUK PKS 2012-2020 Apakah manfaat untuk PKS? Pelan Induk menyarankan 32 inisiatif termasuk enam Program Berimpak Tinggi (High Impact Programme, HIP) dan empat langkah bertema. HIP memainkan peranan penting kerana bakal memberi sumbangan ketara ke arah mencapai matlamat Pelan Induk. Menyedari keunikan persekitaran perniagaan yang unik di Malaysia Timur, Pelan Induk turut menyarankan langkah khusus untuk PKS di Malaysia Timur.
  • 21. Memangkin Pertumbuhan dan Pendapatan 17 Enam Program Berimpak Tinggi yang Membawa Perubahan Sesetengah Program Berimpak Tinggi (HIP) pada asasnya akan diurus dan disampaikanolehsektorswasta,tetapidimilikiolehsebuahKementerianatau Agensi. Kementerian atau Agensi peneraju akan melaporkan perkembangan dan hasil dari aspek peningkatan penjualan, keuntungan, pelaburan, produktiviti dan petunjuk penting lain melalui Agensi Penyelarasan Pusat kepada MPPK. HIP 1: Integrasi Pendaftaran dan Pelesenan Perniagaan bertujuan mewujudkan satu titik pendaftaran tunggal dengan menyepadukan Sistem Pendaftaran Perniagaan Negara iaitu My Corporate Identity (MyCoID) dengan Sistem Pelesenan Perniagaan Negara iaitu Sistem Sokongan Elektronik Lesen Perniagaan (BLESS). Inisiatif dapat bertujuan memudahkan prosedur agar dapat mengurangkan sela masa dan kos yang terlibat untuk memulakan perniagaan baharu. Inisiatif ini juga akan meningkatkan pemformalan kerana pendaftaran akan dijadikan pra-syarat bagi pelesenan.
  • 22. RINGKASAN PELAN INDUK PKS 2012-2020 18 HIP 2: Platform Pengkomersialan Teknologi (TCP) merupakan sebuah platform rangkaian kebangsaan yang diurus oleh pihak swasta agar menggalakkan idea inovatif dari peringkat bukti konsep (proof of concept, POC) ke peringkat pengkomersialan. TCP bertujuan menghapuskan sekatan pasaran terhadap inovasi dengan menyediakan hubungan kepada rangkaian perkhidmatan termasuk sokongan infrastruktur, pembiayaan, bantuan teknikal, maklumat pasaran dan pembinaan kapasiti. HIP 3: Program Pelaburan PKS (SIP) akan menyediakan pembiayaan peringkat awal dengan membangunkan syarikat pelaburan yang akan melabur dalam PKS berpotensi dalam bentuk hutang, ekuiti atau hibrid kedua-dua. Ini dapat menggiatkan pertumbuhan industri modal teroka di Malaysia yang mampu menyokong syarikat permulaan terutamanya PKS yang inovatif.
  • 23. Memangkin Pertumbuhan dan Pendapatan 19 HIP 4: Program Going Export (GoEx) menawarkan bantuan khusus kepada pengeksport baharu dan PKS yang menceburi pasaran baharu. PKS yang bersedia untuk mengeksport boleh mendapatkan sokongan komprehensif yang antara lainnya termasuk akses kepada kepakaran pasaran dan pembeli, dan pematuhan kepada piawaian bagi mempercepat pengantarabangsaan produk dan perkhidmatan. HIP 5:
  • 24. RINGKASAN PELAN INDUK PKS 2012-2020 20 Program Pemangkin bertujuan mewujudkan jaguh tempatan menerusi pendekatan tersasar dengan sokongan dalam bidang pembiayaan, akses kepada pasaran dan pembangunan modal insan. Program akan merangkumi kriteria pemilihan dan mekanisme keluar yang telus. HIP 6:
  • 25. Memangkin Pertumbuhan dan Pendapatan 21 Mesin memproses padi Direkacipta oleh Bau anak Lumpuh dari Sarawak dengan menggunakan enjin elektrik Honda. Keterangkuman Inovasi direka bentuk khusus untuk membantu kumpulan berpendapatan 40% terendah agar menggunakan inovasi untuk menggalakkan transformasi masyarakat, termasuk perusahaan mikro di kawasan luar bandar menerusi bimbingan serta sokongan pembiayaan, teknikal dan pengurusan.
  • 26. RINGKASAN PELAN INDUK PKS 2012-2020 22 AN PELAN INDUK PKS 2012-2020 Satu Permulaan Baharu Pelan Induk PKS menandakan satu permulaan baharu dalam usaha melonjakkan pembangunan PKS ke peringkat seterusnya. Pendekatan yang berbeza amat penting, berpandukan visi keseluruhan Pelan untuk mewujudkan golongan baharu PKS yang berdaya saing di peringkat global. Enam HIP memainkan peranan penting dalam memastikan kejayaan Pelan, diperlengkapkan oleh langkah- langkah lain untuk menangani kekangan semasa yang menghalang pertumbuhan PKS. Pelan Tindakan akan dipacu oleh sektor swasta manakala Kerajaan memainkan peranan sebagai pemudahcara dan pemangkin dalam mewujudkan persekitaran menyokong yang diperlukan untuk PKS. Program akan dipantau, dinilai dan diubahusai untuk memaksimumkan hasil dan membentuk asas kepada pembentukan dasar yang berkesan. Dengan kewujudan rangka kerja yang menyeluruh ini, cabaran utama adalah dalam aspek pelaksanaan Pelan yang memerlukan perubahan daripada sudut perspektif minda semua pihak berkepentingan untuk merealisasikan Pelan Induk.
  • 28. RINGKASAN PELAN INDUK PKS 2012-2020 24 Ringkasan Pelan Tindakan : 32 Inisiatif 6 Program Berimpak Tinggi Petunjuk Prestasi1 Sasaran Matlamat 1 Mengintegrasikan pendaftaran dan pelesenan penubuhan perniagaan untuk meningkatkan kemudahan untuk menjalankan perniagaan Masa/ kos untuk memulakan perniagaan baharu 2 Menubuhkan Platform Pengkomersialan Teknologi (TCP) bagi mengintegrasikan PKS dan syarikat permulaan ke dalam sistem inovasi nasional Bilangan idea yang berjaya dikomersial- kan 3 Menyemarakkan ekosistem pembiayaan bukan bank bagi menyediakan pembiayaan peringkat awal melalui Program Pelaburan PKS (SIP) Bilangan syarikat yang dibiayai 4 Mewujudkan program Going Export (GoEx) untuk mempercepat pengantarabangsaan PKS Bilangan syarikat yang mengeksport 5 Memulakan Program Pemangkin untuk menyediakan bantuan komprehensif kepada PKS yang mempunyai potensi pertumbuhan tinggi supaya menjadi jaguh tempatan Bilangan syarikat pertumbuhan tinggi 6 Menggalakkan Keterangkuman Inovasi iaitu 'Sasaran inovasi secara umum' dan 'Inovasi daripada akar umbi' untuk memperkasa kumpulan pendapatan 40% yang terendah Bilangan idea inovatif yang disokong 1 Petunjuk prestasi utama adalah contoh dan tidak terhad Meningkatkan penubuhan perniagaan Menambah bilangan firma yang mempunyai pertumbuhan tinggi dan berinovasi Meningkatkan produktiviti Mempergiat usaha pemformalan
  • 29. Memangkin Pertumbuhan dan Pendapatan 25 Langkah berdasarkan 4 Tema Petunjuk Prestasi1 Sasaran Matlamat Tema 1 : Pengumpulan sumber dan perkongsian perkhidmatan untuk mengatasi kekurangan skala 7 Menggalakkan Konsortium dan Pengagregatan Penyedia Perkhidmatan untuk membantu penyatuan dan pemasaran produk dan perkhidmatan PKS Bilangan Konsortium yang ditubuhkan 8 Menubuhkan Pusat Penyatuan Logistik untuk membantu PKS mengumpul permintaan dan sumber bagi mengatasi kekangan jumlah penghantaran yang rendah dan kekerapan penghantaran yang terhad Bilangan Pusat yang ditubuhkan 9 Meningkatkan sokongan Sumber Manusia (HR) dan Pembangunan Organisasi (OD) untuk membolehkan PKS menarik lebih ramai pekerja dan seterusnya mengekalkan pekerja Penubuhan akademi OD Tema 2 : Mewujudkan permintaan bagi produk dan perkhidmatan PKS untuk akses pasaran lebih luas 10 Menetapkan dasar perolehan Kerajaan yang khusus bagi PKS Dasar yang diwujudkan 11 Mendorong syarikat multinasional untuk membeli daripada PKS melalui program pembangunan vendor Nilai projek ETP yang diberikan kepada PKS 12 Menyediakan sokongan kewangan untuk membolehkan PKS mematuhi keperluan pasaran bagi piawaian dan persijilan Bilangan PKS yang mempunyai pensijilan
  • 30. RINGKASAN PELAN INDUK PKS 2012-2020 26 Petunjuk Prestasi1 Sasaran Matlamat Tema 3 : Mengurangkan asimetri maklumat untuk meningkatkan peluang 13 Meningkatkan sistem maklumat kredit semasa untuk menangani asimetri maklumat, termasuk pembiayaan Kerajaan Maklumat kredit lebih komprehensif 14 Menggalakkan penerapan Harta Intelek (IP) dalam kalangan PKS melalui kesedaran dan khidmat nasihat yang lebih mantap Bilangan pemfailan IP oleh PKS 15 Menubuhkan Panel Pakar Bebas (Independent Panel of Experts, IPE) yang terdiri daripada pakar industri untuk membantu institusi kewangan menilai projek teknologi baharu Bilangan pemohon PKS yang menggunakan IPE 16 Menyediakan jangkauan lebih efektif untuk menambah keterangkuman kewangan Bilangan PKS yang dibantu setiap tahun Tema 4 : Membina kapasiti melalui pemerolehan pengetahuan dan peningkatan kemahiran 17 Memastikan kemasukan baharu dalam tenaga kerja bersedia untuk bekerja dalam industri % kemasukan baharu yang diterima bekerja dalam industri berkaitan 18 Mengubah politeknik dan bidang teknikal menjadi kerjaya pilihan Bilangan Politeknik yang mempunyai Program Berkembar (Twinning)
  • 31. Memangkin Pertumbuhan dan Pendapatan 27 19 Mendapatkan modal insan berkemahiran dari luar negara bagi menangani kekurangan pekerja mahir dalam kalangan PKS Bilangan pelajar biasiswa Kerajaan yang bekerja dengan PKS 20 Memperkukuh program latihan modal insan bagi memenuhi keperluan kemahiran khusus Bilangan pekerja PKS yang dilatih Langkah bagi Malaysia Timur Petunjuk Prestasi1 Sasaran Matlamat 21 Memperbaik kesalinghubungan antara Semenanjung Malaysia dan Malaysia Timur Purata kepantasan dan kos penghantaran kargo 22 Memperbaiki kemudahan asas di Malaysia Timur melalui peningkatan pelaburan dan penguatkuasaan Kemudahan asas yang diperbaik 23 Meningkatkan sistem penyampaian Kerajaan untuk menangani cabaran pentadbiran Purata tempoh selesai penyampaian Kerajaan 24 Memudahkan akses pasaran bagi PKS melalui penyahkawalseliaan, penyediaan infrastruktur pengagregatan dan penguatkuasaan lebih ketat bagi sektor tidak formal Penyahkaw- alseliaan selesai 1 Petunjuk prestasi utama adalah contoh dan tidak terhad Meningkatkan penubuhan perniagaan Menambah bilangan firma yang mempunyai pertumbuhan tinggi dan berinovasi Meningkatkan produktiviti Mempergiat usaha pemformalan
  • 32. RINGKASAN PELAN INDUK PKS 2012-2020 28 25 Mengkaji semula undang-undang dan dasar dengan mengambil kira keadaan pasaran di Malaysia Timur Kajian semula selesai Langkah Sokongan Lain Petunjuk Prestasi1 Sasaran Matlamat 26 Mengorientasikan semula usaha sedia ada demi mewujudkan sistem pelepasan dan kemudahan perdagangan yang bersepadu dan berkesan Pelaksanaan Tetingkap Tunggal Kebangsaan menurut visi asal 27 Mengkaji semula rejim cukai bagi PKS bertujuan menghapuskan faktor yang menghalang pertumbuhan syarikat Dasar dikaji semula dan kesan dinilai 28 Pindaan kepada Undang-undang Kebankrapan untuk memudahkan penubuhan perniagaan Undang- undang dipinda 29 Menyelaras langkah bagi menggalakkan teknologi dan proses peningkatan produktiviti oleh PKS dengan dasar buruh yang lain Bilangan PKS yang mengguna pakai teknologi 30 Memastikan penjajaran komersial dalam fokus penyelidikan institusi awam dan swasta supaya menepati keperluan industri Bilangan projek penyelidikan yang melibatkan PKS 1 Petunjuk prestasi utama adalah contoh dan tidak terhad Meningkatkan penubuhan perniagaan Menambah bilangan firma yang mempunyai pertumbuhan tinggi dan berinovasi Meningkatkan produktiviti Mempergiat usaha pemformalan
  • 33. Memangkin Pertumbuhan dan Pendapatan 29 31 Menggiatkan pertumbuhan modal teroka (VC), angels dan modal risiko bagi mewujudkan persekitaran pembiayaan yang lebih mantap Bilangan syarikat yang dibiayai 32 Merancakkan semula peranan yang dimainkan oleh pejabat perdagangan luar negeri Bilangan pejabat luar negeri yang menyediakan perkhidmatan kepada PKS
  • 34. RINGKASAN PELAN INDUK PKS 2012-2020 30 Definisi PKS Definisi PKS adalah berdasarkan kepada dua kriteria: • Nilai jualan tahunan/hasil sesebuah perniagaan; ATAU • Bilangan pekerja sepenuh masa sesebuah perniagaan. Secara amnya, PKS di Malaysia didefinisikan seperti berikut: • Sektor pembuatan: Jualan tahunan kurang daripada RM25 juta ATAU kurang daripada 150 pekerja sepenuh masa • Sektor perkhidmatan dan lain-lain: Jualan tahunan kurang daripada RM5 juta ATAU kurang daripada 50 pekerja sepenuh masa Secara terperinci definisi tiga kategori iaitu Mikro, Kecil dan Sederhana adalah seperti berikut: Nilai Jualan Tahuan: Saiz Pembuatan (termasuk asas tani) & perkhidmatan berkaitan pembuatan Pertanian Asas Sektor Perkhidmatan (termasuk ICT) Mikro Kurang daripada RM250,000 Kurang daripada RM200,000 Kurang daripada RM200,000 Kecil Dari RM250,000 sehingga kurang daripada RM10 juta Dari RM200,000 sehingga kurang daripada RM1 juta Dari RM200,000 sehingga kurang daripada RM1 juta Sederhana Dari RM10 juta sehingga kurang daripada RM25 juta Dari RM1 juta sehingga kurang daripada RM5 juta Dari RM1 juta sehingga kurang daripada RM5 juta Bilangan Pekerja Sepenuh Masa: Saiz Pembuatan (termasuk asas tani) & perkhidmatan berkaitan pembuatan Pertanian Asas Sektor Perkhidmatan (termasuk ICT) Mikro Kurang daripada 5 pekerja Kurang daripada 5 pekerja Kurang daripada 5 pekerja Kecil Dari 5 sehingga kurang daripada 50 pekerja Dari 5 sehingga kurang daripada 20 pekerja Dari 5 sehingga kurang daripada 20 pekerja Sederhana Dari 50 sehingga kurang daripada 150 pekerja Dari 20 sehingga kurang daripada 50 pekerja Dari 20 sehingga kurang daripada 50 pekerja
  • 35. Memangkin Pertumbuhan dan Pendapatan 31
  • 36.
  • 38. “Unless we introduce a ‘game changer’, we will be caught in a middle-income trap, whereby we are no longer as competitive on cost as some countries.” “Going forward, the Government would adopt a differentiated approach to accelerate the growth of SMEs and to provide the impetus for growth led by the private sector.” “ … an innovation-led economy demands a new breed of SMEs that can help foster market and technology-driven innovation to create more high-skilled jobs in all economic sectors.” Dato' Sri Mohd Najib Tun Haji Abdul Razak Prime Minister of Malaysia/ Chairman of National SME Development Council Excerpts from YAB Prime Minister's Speeches
  • 39. Contents • Why do we need an SME Masterplan? 36 • What is the status of SMEs in Malaysia? 40 • What are the SME performance levers? 42 • How can the SME Masterplan achieve Vision 2020? 44 • What is in store for SMEs? 48 • A New Beginning 54 Annex • Summary of Action Plan : 32 Initiatives 56 • Definition of SMEs 61
  • 40. SUMMARY SME MASTERPLAN 2012-2020 36 Y SME MASTERPLAN 2012-2020 Why do we need an SME Masterplan? Small and medium enterprises (SMEs) including microenterprises have played an important role in fostering growth, employment and income in the country. In recent years, SMEs have performed well. Gross Domestic Product (GDP) of SMEs expanded at an average annual growth rate of 6.8%, far above the average overall GDP growth of 4.9% per annum in the period 2004 – 2010. This was largely due to the supportive policies put in place by the Government through the National SME Development Council (NSDC). The Council chaired by YAB Prime Minister has laid a comprehensive framework, which brings together more than 15 Ministries and 60 Agencies to work towards achieving a common objective. However, going forward, amidst the uncertain global environment and growing competition, Malaysia requires a 'game changer' to transition the economy to a high income nation by 2020. SMEs are critical to the economic transformation as they form the domestic source of growth and bedrock of private sector activity. SMEs are also important in stimulating innovation and act as stabilisers of growth during an economic slowdown.
  • 41. Catalysing Growth and Income 37 SME Masterplan as the 'Game Changer' The SME Masterplan will be the 'game changer' to accelerate the growth of SMEs to achieve high income nation status by 2020. The Masterplan will be for all SMEs in Malaysia, irrespective of sector, gender, geographical region and ethnic background. Successful implementation of the Masterplan will result in raising the contribution of SMEs to the economy by 2020: • GDP: 41% (2010: 32%); • Employment: 62% (2010: 59%); and • Exports: 25% (2010: 19%).
  • 42. SUMMARY SME MASTERPLAN 2012-2020 38 Role of SMEs in the Economy Going forward, SMEs will assume a greater role in the economy. SMEs would be a key driver of growth as Malaysia advances to a high income economy. In addition, the role as enabler of growth will continue as SMEs upgrade from the current second- and third-tier suppliers to first-tier suppliers and link with large firms in the global supply chain. SME development is also important in achieving a more balanced and inclusive growth, as the Plan includes focus on microenterprises and the bottom 40% of the income pyramid. Priority would be given to nurture domestic SMEs, from the start-up stage right through facilitating expansion to catalysing high potential firms that can graduate to become homegrown champions which can compete in the regional and global markets. At the same time, the bottom 40% of the income pyramid which include microenterprises would be brought into the economic mainstream so that they can benefit from Government assistance and the economic transformation process. The transition will see a change in the economic structure as the services sector and more high value-added knowledge-intensive activities gains prominence. SMEs would require a change in mindset in gearing for this transition.
  • 43. Catalysing Growth and Income 39 A New Approach to SME Development The Masterplan will adopt a new approach to SME development which is outcome-based. To facilitate this, the Masterplan will put in place a comprehensive Monitoring and Evaluation system to ensure effectiveness of programmes. For the first time in Malaysia, a 'live plan' concept is introduced so that the Plan will remain relevant with changing times. Programmes may need to be fine-tuned over time to adjust to environmental and structural changes that may take place. However the vision, goals and overall strategy will remain. The Plan will cater to the business needs of SMEs and will be implemented in collaboration with the private sector through public-private partnerships. The role of industry associations, chambers and non-governmental organisations will be further enhanced to assist in reaching out the programmes to more SMEs in the country and in capacity building at the district, state and national levels.
  • 44. SUMMARY SME MASTERPLAN 2012-2020 40 Y SME MASTERPLAN 2012-2020 What is the status of SMEs in Malaysia? SMEs in Malaysia are defined based on two criteria, namely annual sales turnover and number of full-time employees of a business (details in Annex). SMEs constitute 99.2% of total business establishments in the country. Latest statistics indicate that SMEs contribute 32% of GDP, 59% of employment and 19% of exports. Key Characteristics of SMEs Based on the study for the Masterplan, SMEs in Malaysia demonstrated four key characteristics as follows: • Low productivity compared to large firms in MalaysiaandSMEsindevelopedcountries.SME productivity per worker averaged RM47,000, which is about one-third the productivity of large domestic enterprises. SMEs in the United States and Singapore are seven and four times more productive respectively than Malaysian SMEs;
  • 45. Catalysing Growth and Income 41 • Relatively low business formation compared to high income countries. Formation of limited liability companies is a yardstick to reflect private sector dynamism and level of entrepreneurship in an economy. In Malaysia, while business formation has been relatively robust, they comprised mainly sole proprietorships and partnerships and less of limited liability companies; • Small number of high growth firms contribute the most to the economy. Findings showed that the fastest growing firms accounted for 70% of the additional GDP and 46% of the additional employment created during the period 2000 - 2005; and • Material share of informal sector in the economy. It is estimated that the informal sector accounts for 31% of Gross National Income (developed countries: 14%; US: 9%; Singapore: 13%). Positive Impact of SME Development Programmes For the first time, the Government in collaboration with the World Bank undertook an impact study on 15 SME development programmes. The findings showed positive results from these programmes. In particular, the Human Resource Development Fund (HRDF) had shown a strong positive impact on investment, capital intensity and productivity. The non-human resource development programmes had also indicated positive impact on total output and value-added, capital intensity and total factor productivity (TFP). However, there was limited impact on labour productivity and no impact on wages.
  • 46. SUMMARY SME MASTERPLAN 2012-2020 42 Y SME MASTERPLAN 2012-2020 What are the SME performance levers? In order to accelerate the growth of SMEs, it is important to understand the forces that drive performance of SMEs. Based on a technical analysis on Malaysian data, the Masterplan has highlighted six factors that influence the performance of SMEs. These six performance levers are: • Innovation and technology adoption; • Human capital development; • Access to financing; • Market access; • Legal and regulatory environment; and • Infrastructure. All these performance levers should be enhanced simultaneously as shortcomings in any of these levers will prevent SMEs from reaching their full potential. Currently, SMEs are not achieving high performance due to challenges faced in each of these areas. The aim of the Masterplan is to address these challenges to unleash the growth potential of SMEs to achieve Vision 2020.
  • 48. SUMMARY SME MASTERPLAN 2012-2020 44 Y SME MASTERPLAN 2012-2020 How can the SME Masterplan achieve Vision 2020? The Masterplan adopts a two-pronged approach to address these challenges. A differentiated strategy will be adopted to suit the needs of all SMEs ranging from microenterprises to the more sophisticated firms. On one front, there are generic measures to develop a comprehensive range of assistance for microenterprises and to bring them into the economic mainstream and to contribute to growth. At the same time, the Plan proposes a targeted approach to promote innovative and high growth companies in harnessing their full potential and to integrate into the global market.
  • 49. Catalysing Growth and Income 45 New SME Development Framework The Masterplan has proposed a new framework to align SME development to the broader national aspirations of achieving a high income economy by 2020 via innovation-led and productivity-driven growth. There a five elements to the new framework, namely vision, goals, focus areas, action plan and the institutional support. Each of the goals has specific targets that need to be met in order to achieve the macro targets in terms of SME contribution to GDP, employment and exports by 2020.
  • 50. SUMMARY SME MASTERPLAN 2012-2020 46 Future Growth Opportunities The services sector will be the future growth driver accounting for 65% share of GDP by 2020. SMEs must build up capacity and capability to face the challenges from liberalisation and at the same time to leverage on emerging opportunities. SMEs are also poised to benefit from the National Key Economic Areas (NKEAs) announced by the Government. About 60% of the Entry Point Projects (EPPs) earmarked are expected to benefit SMEs in all sectors. The challenge is for SMEs to migrate from the current back- end of the value chain in the NKEAs, i.e. from the low to medium value- added activities to higher end of the value chain. The SME Masterplan is expected to spur recalibration of activities towards higher value-added activities reflected by the new growth opportunities for SMEs.
  • 52. SUMMARY SME MASTERPLAN 2012-2020 48 Y SME MASTERPLAN 2012-2020 What is in store for SMEs? The Masterplan has proposed 32 initiatives, including six High Impact Programmes (HIPs) and four thematic measures. The HIPs are very important as they will contribute significantly towards achieving the goals of the Masterplan. Recognising the unique business environment in East Malaysia, the Masterplan has also proposed specific measures for SMEs in East Malaysia.
  • 53. Catalysing Growth and Income 49 Six High Impact Programmes that Make a Difference Some of these High Impact Programmes (HIPs) would be essentially managed and delivered by the private sector, but will be owned by a Ministry or Agency. The lead Ministry or Agency will report the progress and outcomes in terms of increase in sales, profits, investments, productivity and other key indicators through the Central Coordinating Agency to NSDC. HIP 1: Integration of Business Registration and Licensing aims to create a single registration point through interfacing of the current National Business Registration System i.e. My Corporate Identity (MyCoID) with the National Business Licensing System i.e. Business Licensing Electronic Support System (BLESS). The initiative is to simplify procedures to reduce the lag time and costs involved in starting a new business. The initiative will also enhance formalisation as registration will be mandated as a pre-requisite for licensing.
  • 54. SUMMARY SME MASTERPLAN 2012-2020 50 HIP 2: Technology Commercialisation Platform (TCP) is a national network of privately-managed platform to promote innovative ideas from proof of concept (POC) to the commercialisation stage. TCP aims to remove market barriers to innovation by providing linkage to a range of services including infrastructure support, financing, technical assistance, market information and capacity building. HIP 3: SME Investment Programme (SIP) is to provide early stage financing through the establishment of investment companies which would invest in potential SMEs in the form debt, equity or a hybrid of both. This will expedite the growth of venture capital industry in the country that can support start-ups, especially innovative SMEs.
  • 55. Catalysing Growth and Income 51 HIP 4: Going Export (GoEx) Programme offers customised assistance to new exporters and SMEs venturing into new markets. Export-ready SMEs can avail to comprehensive support which among others include linkage to market expertise and buyers, and compliance to standards to expedite internationalisation of products and services.
  • 56. SUMMARY SME MASTERPLAN 2012-2020 52 HIP 5: Catalyst Programme is to create homegrown champions through a targeted approach with support in the area of financing, market access and human capital development. The Programme will have transparent selection criteria and exit mechanism.
  • 57. Catalysing Growth and Income 53 HIP 6: Inclusive Innovation is specifically designed to empower the bottom 40% of the income group to leverage on innovation. This Programme will promote transformation of communities including microenterprise in the rural areas through handholding as well as financial, technical and management support. Paddy Processing Machine Invented by Bau anak Lumpuh from Sarawak using recycled Honda electric engine.
  • 58. SUMMARY SME MASTERPLAN 2012-2020 54 Y SME MASTERPLAN 2012-2020 A New Beginning The SME Masterplan signifies a new beginning in an effort to bring SME development to the next level. This would require a differentiated approach with the overall vision of the Plan of creating a new breed of SMEs that are globally competitive. The six HIPs are critical in making the Plan a success, together with other complementary measures to address current constraints to growth of SMEs. The Action Plan would be driven by the private sector, while the Government will take the role as a facilitator and catalyst in creating the enabling environment required for SMEs. Programmes will be monitored, evaluated and fine-tuned to optimise their outcomes and provide the basis for effective policy making. With such a comprehensive framework in place, the key challenge now lies in the implementation of the Plan which will require a shift in the mindset of all stakeholders in the Masterplan to make this a reality.
  • 60. SUMMARY SME MASTERPLAN 2012-2020 56 Summary of Action Plan : 32 Initiatives 6 High Impact Programmes Key Performance Indicator1 Goal Targets 1 Integrate registration and licensing of business establishments to enhance ease of doing business Time/cost to start new business 2 Establish Technology Commercialisation Platform to comprehensively integrate SMEs and start-ups into the national innovation system No. of commercialised ideas 3 Rejuvenate non-banking funding eco-system to provide early stage financing through the SME Investment Programme (SIP) No. of companies funded 4 Establish Going Export (GoEx) Programme to expedite internationalisation of SMEs No. of companies exporting 5 Initiate Catalyst Programme to provide comprehensive support to SMEs with high growth potential to become homegrown champions No. of high growth firms 6 Foster Inclusive Innovation i.e. 'Innovation targeted at masses' and 'Innovation from grassroots' to empower the bottom 40% of the income pyramid No. of innovative ideas supported 1 The key performance indicator is an example and not exhaustive Increase business formation Expand number of high growth and innovative firms Raise productivity Intensify formalisation
  • 61. Catalysing Growth and Income 57 4 Thematic Measures Key Performance Indicator1 Goal Targets Theme 1 : Promote resource pooling and shared services to overcome scale disadvantages 7 Encourage Consortiums and Aggregation Service Providers for bulk purchase and to help consolidate and market SME products and services No. of consortiums established 8 Establish Logistics Consolidation Centres to assist SMEs pool demand and resources to overcome low volume and infrequent shipment limitations No. of Centres established 9 Enhance Human Resources (HR) and Organisational Development (OD) support for better employee attraction and retention by SMEs Setting up of OD academy Theme 2 : Create demand for SME products and services for greater market access 10 Mandate a specific Government procurement policy for SMEs Policy established 11 Encourage MNCs to procure from SMEs through the vendor development programme Value of ETP projects awarded to SMEs 12 Provide financial support to enable SMEs to comply with market requirements of standards and certification No. of SMEs with certification
  • 62. SUMMARY SME MASTERPLAN 2012-2020 58 Key Performance Indicator1 Goal Targets Theme 3 : Reduce information asymmetry for enhancing opportunities 13 Enhance current credit information system to address information asymmetry, i.e. to include Goverment funding More comprehensive credit information 14 Foster greater Intellectual Property (IP) adoption among SMEs through better awareness and advisory No. of IP filings by SMEs 15 Establish Independent Panel of Experts (IPEs) comprising industry experts to assist financial institutions to evaluate new technology projects No. of SME applicants utilising IPEs 16 Effective outreach to enhance financial inclusion No. of SMEs reached out each year Theme 4 : Building capacity through knowledge acquisition and skills upgrade 17 Ensure industry readiness of new entrants into workforce % of new entrants absorbed in related industry 18 Transform polytechnics and technical fields into a career of choice No. of twinning Polytechnics 19 Tap-on talent from abroad to address skills shortage among SMEs No. of Govt. scholars joining SMEs 20 Intensify human capital training programmes to meet specialised skill needs No. SME employees trained
  • 63. Catalysing Growth and Income 59 Measures for East Malaysia Key Performance Indicator1 Goal Targets 21 Improve connectivity within East Malaysia and with Peninsular Malaysia Average speed and cost of cargo delivery 22 Improve basic amenities in East Malaysia through increased investments and enforcement Improved basic amenities 23 Improve Government delivery to address administrative challenges Average turn-around- time of Government delivery 24 Ease market access for SMEs through deregulation, provision of aggregation infrastructure and better enforcement of informal sector Deregulation completed 25 Review laws and policies taking into consideration market realities in East Malaysia Review completed 1 The key performance indicator is an example and not exhaustive Increase business formation Expand number of high growth and innovative firms Raise productivity Intensify formalisation
  • 64. SUMMARY SME MASTERPLAN 2012-2020 60 Other Supporting Measures Key Performance Indicator1 Goal Targets 26 Re-orient existing efforts towards the creation of an integrated and effective trade clearance and facilitation system National Single Window implemented as per original vision 27 Review tax regime for SMEs with a view to remove disincentives for growth Policy reviewed and impact assessed 28 Amendments to Bankruptcy Law to give entrepreneurs a second chance Law amended 29 Synchronise measures to encourage productivity enhancement technologies and processes by SMEs with other relevant labour policies No. of SMEs adopting technology 30 Ensure greater commercial alignment in research focus of public and private institutions to meet industry needs No. of research projects with SME involvement 31 Expedite growth of venture capitalists, angels and risk capital to create a more vibrant funding environment No. of companies funded 32 Revitalise role of overseas trade offices No. of overseas offices with SME services 1 The key performance indicator is an example and not exhaustive Increase business formation Expand number of high growth and innovative firms Raise productivity Intensify formalisation
  • 65. Catalysing Growth and Income 61 Definition of SMEs The definition of SMEs is based on two criteria: • The total sales turnover/revenue of a business in a year; OR • The number of full-time employees of a business. Generally SMEs in Malaysia are defined as follows: • Manufacturing sector: Sales turnover of less than RM25 million OR full-time employee of less than 150 • Services and other sectors: Sales turnover of less than RM5 million OR full- time employee of less than 50 Detailed definition by category namely Micro, Small and Medium is as follows : Annual Sales Turnover: Size Manufacturing (including agro-based) & manufacturing- related services Primary Agriculture Services Sector (including ICT) Micro Less than RM250,000 Less than RM200,000 Less than RM200,000 Small From RM250,000 to less than RM10 million From RM200,000 to less than RM1 million From RM200,000 to less than RM1 million Medium From RM10 million to less than RM25 million From RM1 million to less than RM5 million From RM1 million to less than RM5 million Number of Full-Time Employees: Size Manufacturing (including agro-based) & manufacturing- related services Primary Agriculture Services Sector (including ICT) Micro Less than 5 employees Less than 5 employees Less than 5 employees Small From 5 to less than 50 employees From 5 to less than 20 employees From 5 to less than 20 employees Medium From 50 to less than 150 employees From 20 to less than 50 employees From 20 to less than 50 employees
  • 66.
  • 67. Pertama kali diterbitkan pada tahun 2012 Untuk maklumat lanjut, sila hubungi: SME Corporation Malaysia Sekretariat kepada Majlis Pembangunan PKS Kebangsaan Alamat : Tingkat 6, SME 1, Blok B Lot E, Jalan Stesen Sentral 2 Kuala Lumpur Sentral 50470 Kuala Lumpur Tel : 603-2775 6000 Faks : 603-2775 6001 atau layari laman sesawang SME Corp. Malaysia : www.smecorp.gov.my atau portal SMEinfo : www.smeinfo.com.my HAK CIPTA TERPELIHARA. Tiada bahagian daripada penerbitan ini dibenarkan untuk diterbitkan semula tanpa kebenaran bertulis daripada penerbit. Segala usaha telah diambil bagi memastikan maklumat yang terkandung adalah tepat pada masa penerbitan. _________________________________________________________________________ First published in 2012 For further information, please contact: SME Corporation Malaysia Secretariat to the National SME Development Council Address : Level 6, SME 1, Block B Lot E, Jalan Stesen Sentral 2 Kuala Lumpur Sentral 50470 Kuala Lumpur Tel : 603-2775 6000 Fax : 603-2775 6001 or visit SME Corp. Malaysia's website : www.smecorp.gov.my or SMEinfo portal : www.smeinfo.com.my ALL RIGHTS RESERVED. No portion of this publication may be reproduced without written permission from the publisher. Every effort has been made to ensure that the information contained herein is correct at the time of publication.
  • 68.
  • 69. Contents Foreword by YAB Prime Minister i. Executive Summary 5 _________________________________________________________________________________ ii. Chapters _________________________________________________________________________________ • Chapter 1 : The Need for a 'Game Changer' 15 • Chapter 2 : Structural Characteristics of Malaysian SMEs 27 • Chapter 3 : Impact Assessment on SME Development Programmes 39 • Chapter 4 : Forces that Drive SME Performance 49 • Chapter 5 : New SME Development Framework 61 • Chapter 6 : Future Growth Opportunities for SMEs 71 • Chapter 7 : Action Plan to Accelerate Growth 83 • Chapter 8 : Implementation and Institutional Capacity Building 109 • Chapter 9 : A New Beginning 119 iii. Annex _________________________________________________________________________________ • Summary of Action Plan : 32 Initiatives 124 • Definition of SMEs 127 76938_i-82.indd Sec1:176938_i-82.indd Sec1:1 5/15/12 5:44 PM5/15/12 5:44 PM
  • 70. SME MASTERPLAN 2012-2020 5 Executive Summary 76938_i-82.indd Sec1:576938_i-82.indd Sec1:5 5/14/12 12:19 PM5/14/12 12:19 PM
  • 71. SME MASTERPLAN 2012-2020 6 Small and medium enterprises (SMEs) including microenterprises have played an important role in fostering growth, employment and income, and have been integral to Malaysia’s economic transformation process. Going forward, amidst the changing external environment and growing global competition, Malaysia requires a 'game changer' to transition the economy to a high income nation by 2020. In the last few years, SMEs have witnessed a marked improvement in their performance. Real Gross Domestic Product (GDP) of SMEs has consistently outperformed that of the overall economy, expanding at an average annual growth rate of 6.8% versus 4.9% for the overall economic growth in the period 2004 – 2010. This was due mainly to definitive policies by the Government through the National SME Development Council (NSDC). The Council has laid a solid foundation in SME development via a comprehensive framework that brought together more than 15 Ministries and 60 Agencies to work towards a common objective. SME Masterplan as the 'Game Changer' Going forward, SMEs will assume a greater role in the economy not only as an enabler but as a key driver of growth as well as to achieve inclusive and balanced growth. SMEs are critical to the economic transformation as they form the endogenous source of growth and bedrock of private sector activity. SMEs also stimulate innovation and act as stabilisers of growth during an economic slowdown. Hence, it is vital to build a strong base of vibrant and competitive SMEs that are resilient to challenges, including pressures arising from liberalisation of markets. Meeting the Vision 2020 of a high income nation is a challenging task and a fresh approach is required to accelerate the growth of SMEs. The aim is to increase the contribution of SMEs to the economy. This would necessitate a quantum leap in growth and transformation to higher value-added activities that are knowledge intensive. The SME Masterplan will therefore be the 'game changer' in navigating the new development path for SMEs across all sectors until 2020. The new strategy will build on existing initiatives for SMEs by strengthening the current framework and to align to the macro policy reforms. Executive Summary 76938_i-82.indd Sec1:676938_i-82.indd Sec1:6 5/14/12 12:19 PM5/14/12 12:19 PM
  • 72. Catalysing Growth and Income 7 A New Approach to SME Development The SME Masterplan will take a very different approach from previous strategies. It will be based on evidence and sound analysis. The Masterplan will adopt an outcome-based approach in SME development by putting in place a comprehensive Monitoring and Evaluation (M&E) system. It will be a 'live plan' that can be fine-tuned to remain relevant with changing times. Programmes will be demand-driven, catering to the business needs of SMEs. The programmes are specifically aimed at addressing market imperfections and information asymmetry, and will have a clear timeline for exit. The Masterplan also has a strong element of public-private partnership and hence, encouraging shared responsibility and accountability between Ministries and Agencies and the private sector. Meanwhile, the Government would act as facilitator and catalyst, creating an enabling environment and ecosystem for SMEs to thrive by encouraging entrepreneurship, innovation and investment. Diverse Nature of Malaysian SMEs SMEs constitute 99.2% of total business establishments in the country. Based on the latest statistics, SMEs contribute 32% of GDP, 59% of employment and 19% of exports. Bulk of the SMEs (87%) are in the services sector, followed by manufacturing (7%) and agriculture (6%). Microenterprisesrepresentmajority(79%)ofSMEs. By location, most of the SMEs operate in the Klang Valley (35.7%), followed by Johor (10.3%), Perak (8%) and Kedah (6.8%). The Masterplan revealed four key characteristics of SMEs in Malaysia which include: • Low productivity compared to those in the region and more advanced countries. The productivity of Malaysian SMEs which is estimated to average RM47,000 in 2010, is about one-third of large enterprises (RM148,000). When compared internationally, SMEs in Singapore and the United States are four times and seven times more productive respectively than Malaysian SMEs; • Lower business formation than high income countries. The Masterplan uses average entry density to gauge the business dynamism and entrepreneurship level which reflect the rate of business formation. It is found that Malaysia stands relatively high among emerging markets, but substantially below that of high income countries due partly to lack of perceived entrepreneurship capabilities; 76938_i-82.indd Sec1:776938_i-82.indd Sec1:7 5/14/12 12:19 PM5/14/12 12:19 PM
  • 73. SME MASTERPLAN 2012-2020 8 • Small number of firms contributes the most to the economy. Findings showed that fast-growing firms accounted for 70% of the additional GDP and 46% of the additional employment created in the period 2000 – 2005; and • Material share of informal sector in the economy. It is estimated that the informal sector accounts for about 31% of the Gross National Income (GNI) and these are usually microenterprises where the owners are self- employed with very few partners. Positive Impact of SME Development Programmes During the Ninth Malaysia Plan period (2006 – 2010), a total of RM26 billion was spent in SME development programmes, representing 11.6% of the total development expenditure during the period. The programmes were aimed to address constraints faced by SMEs and are categorised under the three strategic thrusts, namely enhancing access to financing; building capacity and capability; and strengthening enabling infrastructure. While there was evidence on the impact of these programmes at the macro level as seen in the encouraging performance of SMEs in recent years, there was uncertainty on whether the result was due to the effectiveness of the programmes or merely from the synergistic effects of improved coordination under NSDC or due to both reasons. For the first time, the Government in collaboration withtheWorldBankundertookanimpactevaluation involving rigourous technical assessment on 15 SME development programmes. The findings showed positive results from these programmes. In particular, the Human Resource Development Fund (HRDF) had shown a strong positive impact on investment, capital intensity and productivity. The rest of the programmes on non-human resource development had also indicated positive impact on capital intensity, total factor productivity (TFP), employment, as well as total output and value-added. The analysis concluded that every 1% increase in programme support will result on average 1 - 5% gain in performance. However, there was limited impact on labour productivity and no impact on wages. 76938_i-82.indd Sec1:876938_i-82.indd Sec1:8 5/14/12 12:20 PM5/14/12 12:20 PM
  • 74. Catalysing Growth and Income 9 Growth Levers for SMEs In order to accelerate the performance of SMEs to the next level, it is important to understand the forces that drive SME performance. Analysis of findings from the World Bank Productivity and Investment Climate Surveys has revealed that there are six factors which influence the performance of Malaysian SMEs, namely: • Innovation and technology adoption; • Human capital development; • Access to financing; • Market access; • Legal and regulatory environment; and • Infrastructure. Currently SMEs are not achieving high performance due to challenges faced in each of these areas (refer to Chart 1). Of importance, these challenges need to be addressed simultaneously to achieve the desired results as shortcomings from any of these factors can weigh down on the overall growth prospects of SMEs. The aim of the Masterplan is to address these challenges to unleash the growth potential of SMEs to achieve Vision 2020. 76938_i-82.indd Sec1:976938_i-82.indd Sec1:9 5/14/12 12:20 PM5/14/12 12:20 PM
  • 75. SME MASTERPLAN 2012-2020 10 New SME Development Framework Aligning to National Aspiration The Masterplan has proposed a new framework to align SME development to the broader national aspirations of achieving a high income economy by 2020 via innovation-led and productivity-driven growth (refer to Chart 2). There are five elements to the new framework, namely vision, goals, focus areas, action plan and the institutional support. Each of these goals has specific targets that need to be met in order to achieve the macro targets in terms of SME contribution to GDP, employment and exports by 2020: • 41% share of GDP (2010: 32%); • 62% share of employment (2010: 59%); and • 25% share of exports (2010: 19%). newframework 76938_i-82.indd Sec1:1076938_i-82.indd Sec1:10 5/14/12 12:20 PM5/14/12 12:20 PM
  • 76. Catalysing Growth and Income 11 Growth Opportunities in High Value Activities The services sector is expected to be the main growth driver of the economy, with its share to GDP projected to rise to 65% by 2020. The on-going liberalisation measures will result in new challenges for SMEs in the sector and at the same time, it will also usher new opportunities. Thus, SMEs must prepare themselves to face the challenges and build their capacity and capability to reap the benefits of liberalisation. SMEs are also poised to benefit from the National Key Economic Areas (NKEAs) announced by the Government. About 60% of the Entry Point Projects (EPPs) earmarked are expected to benefit SMEs across all sectors. The challenge is for SMEs to migrate from the current back-end of the value chain in the NKEAs, i.e. from the low to medium value-added activities to higher end of the chain. The SME Masterplan is expected to spur recalibration of activities towards high value activities as in Chart 3. 76938_i-82.indd Sec1:1176938_i-82.indd Sec1:11 5/14/12 12:20 PM5/14/12 12:20 PM
  • 77. SME MASTERPLAN 2012-2020 12 The initiatives were reviewed further to check on relevancy, impact, priority and alignment to the Plan. Finally, 32 initiatives have been identified under the Action Plan, which include six High Impact Programmes (HIPs) that would make the difference in meeting the goals of the Masterplan. Hence, it is critical to ensure that the HIPs are being successfully implemented. In addition, there are 14 other initiatives clustered under four thematic areas. Recognising the unique business environment in East Malaysia, the Masterplan has also proposed specific measures for SMEs in East Malaysia and other macro measures. Building Capacity Towards Implementation Success The most critical factor to ensure successful implementation of the SME Masterplan is the existence of a strong central agency to implement the Masterplan. Therefore, the role of SME Corporation Malaysia (SME Corp. Malaysia) will need to be further strengthened. This would require reorganisation of the existing structure and improvement in the coordination mechanism to allow greater empowerment to enable the Agency to function effectively in executing the Plan. SME Corp. Malaysia would need to be given sufficient authority and resources and have a more active role in the budgetary decision on SME development. The agency would also need to establish a comprehensive Monitoring and Evaluation (M&E) system besides devising a risk mitigation plan to ensure smooth implementation of the Plan. Accelerating Growth Through High Impact Programmes In order to achieve the ambitious targets set in the SME Masterplan, the initiatives under the Action Plan have to be impactful to bring about the desired results. These initiatives were based on the following eight guiding principles: • Consistent with the national strategic direction; • Addresses market failures and information asymmetry; • Catalyst to develop private service providers; • Avoid substituting private funds with public funds; • Ensure private sector involvement; • Results must be measurable; • Highest impact from funds; and • Clear accountability and delineation of roles. 76938_i-82.indd Sec1:1276938_i-82.indd Sec1:12 5/14/12 12:20 PM5/14/12 12:20 PM
  • 78. Catalysing Growth and Income 13 A New Beginning for Greater Heights The SME Masterplan will set the stage for a new beginning to bring SMEs to the next level. The Plan has laid a clear path to achieve the ambitious goals aligned to the overall vision of creating globally competitive SMEs that enhance wealth creation and contribute significantly to the social well-being of the nation. The challenge lies in the execution of the Plan. This would require a paradigm shift in the mindset of all players involved in SME development to embrace the new approach and harness the growth potential of SMEs in the country. 76938_i-82.indd Sec1:1376938_i-82.indd Sec1:13 5/14/12 12:20 PM5/14/12 12:20 PM
  • 79. SME MASTERPLAN 2012-2020 14 76938_i-82.indd Sec1:1476938_i-82.indd Sec1:14 5/14/12 12:20 PM5/14/12 12:20 PM
  • 80. SME MASTERPLAN 2012-2020 15 chapter1 The Need for a 'Game Changer' 76938_i-82.indd Sec1:1576938_i-82.indd Sec1:15 5/14/12 12:20 PM5/14/12 12:20 PM
  • 81. The Need for a 'Game Changer'116 Small and medium enterprises (SMEs) which include microenterprises, have been intrinsic to Malaysia’s economic transformation process. In the past, SMEs played an important role in fostering growth, employment and income. Through the lens of long-term development, Malaysia has been a success story, enjoying significant economic and social progress for several decades, thus facilitating a transition from a low-income to a middle-income nation. Currently the country faces the predicament of a 'middle-income' trap as the historical growth engines have moderated. Lower productivity growth accompanied by decline in private investment has lowered the potential output of the country. Breaking away from the 'middle-income' trap is further complicated by the changing global environment. Emergence of new economic powerhouses amidst the forces of globalisation and liberalisation have created a competitive marketplace, with intensive global competition for markets, capital and talent. At the same time, the world economy is expected to converge to a 'new normal' as the global rebalancing continues reflecting a more modest demand from the advanced economies. These shifts would not only pose challenges but would also spawn new opportunities for countries like Malaysia, especially from intra- regionaltradeandinvestment.Amidsttheuncertainexternalconditions,achieving Vision 2020 of a high income nation has become ever more challenging. This requires a 'game changer' or a new approach for a fundamental shift in the sources of Malaysia’s competitive advantage from low-cost to high-value. The Need for a 'Game Changer' 76938_i-82.indd Sec1:1676938_i-82.indd Sec1:16 5/14/12 12:20 PM5/14/12 12:20 PM
  • 82. SME MASTERPLAN 2012-2020 17 TheGovernmenthasembarkedonaNewEconomic Model to transition the country to a high income nation. The aim is to achieve high income by 2020 that is both inclusive and sustainable. Income levels will be raised through productivity gains, while at the same time inclusiveness strengthened to benefit all Malaysians, and to ensure sustainability so that meeting present needs would not be at the expense of future generations. The challenge is to jointly achieve these goals and to ensure that the progress of one goal does not compromise the others. The reforms will be undertaken through the Economic Transformation Programme (ETP) that targets an average annual growth in Gross National Income (GNI) of 6%, with per capita income doubling from RM23,700 (USD6,700) in 2009 to RM48,000 (USD15,000) by 2020. The transition to a high income nation would also likely witness a change in the economic structure, characterised by an increasing dominance of services content in the economy and a move towards more knowledge- intensive and high value-added activities. SMEs Engine of Future Growth Going forward, the growth drivers are likely to shift. SMEs are expected to play as an important economic agent in achieving a high income nation. The role of SMEs will become increasingly critical, not only as enabler of growth by providing the support to large firms but also as a driver of economic growth. Malaysia’s integration with global production network involves upgrading of SMEs from second- and third-tier suppliers to first-tier suppliers who serve directly to the anchor companies in the value chain, namely large firms and multinational companies. At the same time, SMEs will be at the forefront as the Government focuses on growing these entities to become large homegrown champions that can compete internationally. SME development is also important in achieving a more balanced and inclusive growth, by addressing the bottom 40% of the income pyramid, which include microenterprises. SMEs are to assume a greater role in the economy not only as an enabler but as a key driver of growth as well as to achieve inclusive and balanced growth 76938_i-82.indd Sec1:1776938_i-82.indd Sec1:17 5/14/12 12:20 PM5/14/12 12:20 PM
  • 83. The Need for a 'Game Changer'118 There are five reasons supporting why SMEs are critical in Malaysia’s development path moving ahead. • First, given the less reliable external environment, SMEs will be the driving force to generate the endogenous source of growth. A strong and vibrant SME base can benefit from and contribute to the growth in domestic demand. Demand for SME products and services will be supported by rising consumer affluence in the region; • Second, given that SMEs account for 99% of all businesses in the country, they will form the bedrock of private sector dynamism as the focus moves to private sector-led growth; • Third, SMEs also represent an important source of innovation to spearhead frontier technology and growth of new industries and services; • Fourth,itisvitaltobuildastrongbaseofvibrant and competitive SMEs that are resilient to challenges arising from liberalisation of markets. Of significance, the liberalisation of the services sector where there is strong presence of SMEs will require domestic capacity building to avoid hollowing out of existing players due to competitive pressures and facilitate the shift towards a services- based economy; and • Finally, during economic shocks, SMEs act as stabilisers of growth. In the recent 2008/2009 global economic and financial crisis, Malaysian SMEs had proven to be more resilient than their larger counterparts. Building on Past Success In the last decade, there has been a discernible shift in growth trends of SMEs. While prior to 2004, Gross Domestic Product (GDP) growth of SMEs mirrored that of the overall economy (refer to Chart 1.2), in the subsequent period of 2004 - 2010, GDP growth of SMEs has consistently outperformed the overall economic growth. Real GDP of SMEs expanded at an average annual growth rate of 6.8% versus 4.9% for the overall economy. The growth was supported by productivity gains and growth in employment (refer to Chart 1.3) as these two parameters also outperformed that of the overall economy. 76938_i-82.indd Sec1:1876938_i-82.indd Sec1:18 5/14/12 12:20 PM5/14/12 12:20 PM
  • 84. SME MASTERPLAN 2012-2020 19 Definitive Government policies have been instrumental for the rapid growth of SMEs. In 2004, SME development came to the forefront with the establishment of a high level body, namely the National SME Development Council, which is chaired by the Prime Minister. During this period, a solid foundation was laid. A comprehensive institutional framework was put in place to oversee coordinated efforts among more than 15 Ministries and 60 Agencies in pursuing a common objective. A standard definition for SMEs was enforced across the Ministries and Agencies. Reducing overlaps and streamlining of policies had enhanced effectiveness, delivery and outreach. SME programmes were focused on strengthening the enabling infrastructure, enhancing access to financing, and building capacity and capability. At the same time, growth was also due to other supportive public policies, namely enhancement to the Government delivery system; promotion of tourism activities; rejuvenation of the agriculture sector; and focus on small contractors to ensure that they benefited from public infrastructure projects. The positive results in the last few years showed that SME development was heading in the right direction. However, to achieve a high income nation, there is still a wide gap with other developed nations. Contribution of SMEs to GDP in Malaysia remains under-represented, accounting for about 32% in 2010 (2000: 28.8%), lagging behind other middle-income nations (average of 39%; Chart 1.4). 76938_i-82.indd Sec1:1976938_i-82.indd Sec1:19 5/14/12 12:20 PM5/14/12 12:20 PM
  • 85. The Need for a 'Game Changer'120 New Approach to SME Development A fresh approach is required to accelerate the growth of SMEs and to ensure a more meaningful contribution to the economy. The new strategy is built on the existing initiatives for SMEs by strengthening the current framework and to align to the macro policy reforms and in meeting the needs of the changing global environment. Furthermore, given the Government’s commitment to bring down the fiscal deficit to 3% of GDP by 2015 (2011: 5%), emphasis will be on prioritisation of programmes and ensuring greater efficacy through an outcome- based approach. Future SME development programmes will be focused on those that have impactful outcomes. SME development will also see greater private sector participation through partnerships to achieve the intended goals. Masterplan to Navigate Policy Direction The new strategy, encapsulated in the SME Masterplan (2012 - 2020) would navigate the policy direction of SMEs for the next nine years. The Masterplan will be anchored to the bigger policy framework of the ETP and the Tenth Malaysia Plan, and complementing existing initiatives such as the Bumiputera Transformation Programme, Rural Transformation Programme, and the corridor development programmes. The SME Masterplan is for all SMEs in Malaysia, irrespective of sector, gender, geographical region and ethnic background 76938_i-82.indd Sec1:2076938_i-82.indd Sec1:20 5/14/12 12:20 PM5/14/12 12:20 PM
  • 86. SME MASTERPLAN 2012-2020 21 Essentially, the SME Masterplan will be relevant to all SMEs, across sectors and strategic areas. The Masterplan is aimed at unleashing the untapped potential of SMEs to enable the quantum leap in growth and for a consequent increase in contribution of SMEs to GDP. The focus would be to create an enabling ecosystem to accelerate the growth of SMEs through productivity gains and to bring them to the next level of development. The country would require a strong base of thriving SMEs that can support the growth of the economy. Thus, the Plan advocates for measures to enhance the legal and regulatory environment to be conducive for the formation, growth and exit of SMEs; foster innovation among SMEs; ensure creditworthy and innovative SMEs have access to financing; upgrade management capabilities of SME owners and worker competencies; improve market access for SME products and services; and enhance the physical infrastructure for SMEs to operate effectively. The approach to the SME Masterplan is very different from the past. The Plan is drawn based on evidence and sound analysis. There is clarity and alignment between the action plan, goals and the overarching vision of the Masterplan. The new elements in the Masterplan are: i. Outcome-based approach through a proper Monitoring and Evaluation (M&E) system established not only to guide sound decisions on budgeting, but also to assess progress of programmes and to fine-tune where necessary; 76938_i-82.indd Sec1:2176938_i-82.indd Sec1:21 5/14/12 12:20 PM5/14/12 12:20 PM
  • 87. The Need for a 'Game Changer'122 ii. The 'live plan' concept is core to the Masterplan. The basic premise is that the Action Plan is not 'cast in stone' for the next nine years. Programmes may need to be fine- tuned due to changes to the environment or problems in the implementation through the feedback loop of the M&E mechanism, thus allowing for evidence-based course of actions. Hence, the Masterplan will remain relevant with changing times; iii. Programmes will be demand-driven, meeting the business needs of SMEs. The Action Plan and design of programmes is co- created with relevant stakeholders through a consultative approach, and monitored and evaluated regularly to ensure success; iv. The Masterplan advocates strong public- private partnership. Programmes will no longer be the sole responsibility of the Government. Programmes can be managed by the private sector but owned by a Ministry or an Agency. The role of associations and chambers would go beyond advocacy to include outreach and capacity building, similar to those in many advanced economies. This would entail shared responsibility and accountability among Ministries and Agencies and the private sector through well defined key performance indicators (KPIs); v. Programmes will be time-bound to address market imperfections and information asymmetry. In other words, specific needs of SMEs that currently cannot be met or offered by the private sector will be taken up by the Government. Over time, the policy actions would have addressed these needs paving the way for market creation and thus providing the Government with a clear exit path towards market-driven continuity; and vi. The Masterplan also proposes not only benchmarking against the best practices in other countries but also best performers in the country. SME Ecosystem in a Developed Nation Expanding the pool of knowledge-intensive and innovative SMEs will be the key element of the economic transformation. The existing policies, regulations, institutional structures, practices, mindset and attitudes while have been successful in the past will have to change and evolve as the Plan is implemented. These will manifest into the creation of an ecosystem similar to those in developed nations. Among the key characteristics of the desired SME ecosystem are: • Existence of a strong enterprise culture which favours productivity, efficiency, environmental consciousness, quality jobs, equitable social practices, as well as sound labour and industrial relations; • Strong entrepreneurial and innovation culture shaped through social and cultural changes (positive attitude to risk taking) by way of education and entrepreneurial development; • Active national innovation system encouraging strong local linkages between universities, technology centres, incubators, financiers and firms, including SMEs; 76938_i-82.indd Sec1:2276938_i-82.indd Sec1:22 5/14/12 12:20 PM5/14/12 12:20 PM
  • 88. SME MASTERPLAN 2012-2020 23 • Strong non-banking financing, namely private equity, venture capital and business angels to foster early stage development and innovative firms; • Effective value chain network linking large firms to SMEs; • Effective support services for SMEs by the public sector (nationwide support centres for SMEs) and newly developed private service providers; and • Effective M&E system to assess impact of all initiatives. Government as Facilitator and Catalyst The Government’s role would be to create an enabling environment and ecosystem for SMEs to thrive by encouraging entrepreneurship, innovation and investment. Of significance, the Government’s role would be to act as facilitator and catalyst. SMEs recognised as an important economic agent will be given opportunities for access to resources. The Government would also formulate and implement laws and regulations that support the activities of SMEs. In areas where there are gaps that constrain the growth of SMEs, the Government will intervene in providing specific programmes as well as assistance in the form of financial and business support services to achieve specific development outcomes outlined in the Masterplan. 76938_i-82.indd Sec1:2376938_i-82.indd Sec1:23 5/14/12 12:20 PM5/14/12 12:20 PM
  • 89. The Need for a 'Game Changer'124 Evidence-based Plan Focused on Delivery The SME Masterplan (2012 – 2020) would be the first long-term plan for SME development for the country. The Plan is comprehensive, encompassing the broad strategy and policy framework going forward based on empirical evidence and analysis of the current state of SMEs. For the very first time, a quantitative impact study of the existing Government programmes was undertaken to evaluate the effectiveness of programmes, thus paving the way for an outcome- based approach going forward. The Plan unveils a New SME Development Framework defining a clear path ahead premised on a common vision for SMEs and the required goals to achieve this vision, which supports the overarching objectives of the country in attaining a high income nation by 2020. Both, top-down and bottom-up approaches were taken in developing the Masterplan. The visioning was based on the broader policy aspirations at the national level. The bottom-up approach was through stakeholder engagement involving co- creation, validation and ratification process. Central to the Plan are the recommendations including adopting proven best practises from other countries that are suitable in the Malaysian context and more importantly looking into the implementation issues to ensure the success of the Plan. The recommendations are in the form of a comprehensive Action Plan comprising six High Impact Programmes and other complementary initiatives that address constraints preventing Malaysian SMEs from performing their best. The empiricalevidencehasidentifiedthemostimportant growth levers that influence the performance of SMEs. It is emphasised that shortcomings in all these levers need to be addressed simultaneously or any one factor can weigh down on the overall performance prospects of SMEs. The Plan also looks into the institutional capacity and support that need to be strengthened to facilitate the implementation of the Masterplan. This includes putting in place an effective M&E system and recommendations on the structural changes to the current institutional framework to execute the Plan. 76938_i-82.indd Sec1:2476938_i-82.indd Sec1:24 5/14/12 12:20 PM5/14/12 12:20 PM
  • 90. SME MASTERPLAN 2012-2020 25 76938_i-82.indd Sec1:2576938_i-82.indd Sec1:25 5/14/12 12:20 PM5/14/12 12:20 PM
  • 91. SME MASTERPLAN 2012-2020 27SME MASTERPLAN 2012-2020 27 chapter2 Structural Characteristics of Malaysian SMEs 76938_i-82.indd Sec1:2776938_i-82.indd Sec1:27 5/14/12 12:20 PM5/14/12 12:20 PM
  • 92. Structural Characteristics of Malaysian SMEs228 Structural Characteristics of Malaysian SMEs Diverse Nature of SMEs As in other countries, small and medium enterprises (SMEs) in Malaysia are a very heterogeneous group. They are involved in activities ranging from petty traders, grocery store operators, medium-sized contract manufacturers supplying parts and components to multinational corporations and professional services such as software firms or medical researchers selling their services to overseas markets. SMEs also operate in different market environment such as urban, rural, online, physical, domestic, regional and international. These SMEs may be formal or in the informal sector and they possess different levels of skills depending on their activities. These elements form the characteristics of SMEs in Malaysia and the basis for policy response. Definition of SMEs varies across countries. In Malaysia, SMEs are defined based on two criteria, namely annual sales turnover and number of full-time employees of a business. For the manufacturing and manufacturing-related services, SMEs refer to enterprises with sales turnover of less than RM25 million or full-time employees of less than 150 workers, while for the services and the other sectors, SMEs are those with sales turnover of less than RM5 million or less than 50 workers. A business that fulfils either one of the criteria will be deemed as an SME. The definition for the micro, small and medium is in turn determined by different threshold of the criteria (see details in Annex). SME businesses can be legally structured as entities registered either under the Registration of Businesses Act 1956 (Act 197) or Companies Act 1965 (Act 125). 76938_i-82.indd Sec1:2876938_i-82.indd Sec1:28 5/14/12 12:20 PM5/14/12 12:20 PM
  • 93. SME MASTERPLAN 2012-2020 29 Importance to the Economy SMEs contribute 32% of Gross Domestic Product (GDP), 59% of employment and 19% of exports. Basedonlateststatistics(CensusofEstablishments and Enterprises 2005), SMEs constitute 99.2% of total business establishments in Malaysia or totalling 548,267 enterprises. • Bulk of these SMEs (87%) are engaged in the services sector, while another 7% and 6% respectively are in the manufacturing and agriculture sectors. About 60% of total SMEs are in the distributive trade services sub- sector. • In terms of size, the majority or 79% are microenterpriseswithlessthan5workers(refer to Chart 2.1). Microenterprises are dominant mainly in the distributive trade services sub- sector (83.6% share of total establishments in this sub-sector) and agriculture (93.1%) sector. The manufacturing sector has a higher proportion of large enterprises relative to all other sectors. • Most of the SMEs are concentrated in the Klang Valley (Selangor and Federal Territory: 35.7% share of all SMEs) and followed by Johor (10.3%), Perak (8%) and Kedah (6.8%). While microenterprises are predominant in all states, their share to total SMEs is especially high in the eastern and northern states, namely Kelantan, Perlis, Terengganu, Kedah and Pahang where they make up 88 - 95% of all enterprises. • The share of SMEs is negatively correlated with the age of the company. In other words, a significant percentage of firms operating in the economy i.e. 45% are young, operating for less than 5 years. Only about 12% of the SMEs are above 20 years, indicating that many may have either exited or graduated to become large firms. The distribution differs for large firms, whereby 60% of the firms are above 10 years. • About 78% of the SMEs comprise sole proprietorships and partnerships, 21.3% are private limited companies, while only 0.2% are public listed companies (refer to Chart 2.2). This is opposed to large enterprises whereby majority or 94% are private limited or public listed companies. 76938_i-82.indd Sec1:2976938_i-82.indd Sec1:29 5/14/12 12:20 PM5/14/12 12:20 PM
  • 94. Structural Characteristics of Malaysian SMEs230 SMEs employed some 3.7 million workers or 59% of total private sector employment. Two- thirds of the workers are in the services sector. As a substantial proportion of employment in the distributive trade sub-sector is accounted for by microenterprises, it is large enterprises that dominate in employment in the manufacturing, construction and mining sectors as well as in the finance and insurance services sub-sector. Wages increase with establishment size, as employees in larger enterprises are generally paid the highest and microenterprise the lowest. Wages by sub- sectors indicate that the highest paid employees are in the skilled areas, namely information and communication technology (ICT) sector, followed by financial services and healthcare services. Among microenterprises, the highest average wages is in healthcare services underpinned by doctors operating private clinics. Key Structural Characteristics It was recognised that there was a need to fully understand the structural characteristics of SMEs in Malaysia prior to developing the Masterplan. A diagnostic study by the World Bank on SMEs in Malaysia in 2010/2011 vis-á-vis its peers in the region and against more developed nations revealed four key characteristics, namely: • Productivity of SMEs was relatively low; • Business formation was lower than in high income nations; • Small number of firms accounted for bulk of the increase in GDP and employment; and • Material share of informal sector existed in the economy. (i) Low productivity While it is typical for SMEs to have lower labour productivity compared to their large counterparts even in high-income countries, the productivity gap in Malaysia between large firms and SMEs is significant. Studies have indicated that productivity growth has slowed down significantly after the Asian crisis due to decline in private investment, shortage of skilled workers and lack of innovative activity in the country. Malaysian SME productivity (value-added per worker) averaged RM44,000 in 2008. In 2010, SME productivity is estimated to have averaged RM47,000, about one-third of large estabishments (RM148,000). 76938_i-82.indd Sec1:3076938_i-82.indd Sec1:30 5/14/12 12:20 PM5/14/12 12:20 PM
  • 95. SME MASTERPLAN 2012-2020 31 Even compared internationally, Malaysian SMEs are far less productive than those in high income countries. SMEs in Singapore are four times more productive than Malaysian SMEs, while SMEs in the United States are seven times more productive. The low productivity is due mainly to the current economic structure, whereby there is high concentration of microenterprises in the distributive trade services sub-sector with very low productivity level, hence, dampening the overall productivity in the services sector. However, average productivity in the manufacturing sector and the more specialised services such as financial services sub-sector is much higher. 76938_i-82.indd Sec1:3176938_i-82.indd Sec1:31 5/14/12 12:20 PM5/14/12 12:20 PM
  • 96. Structural Characteristics of Malaysian SMEs232 (ii) Business formation rate lower than high income nations The rate of business formation is a reflection of private sector dynamism and the level of entrepreneurship in an economy. Entrepreneurship is important to foster competition and contribute to economic growth. In Malaysia, it is found that overall business formation, or the number of businesses established each year is relatively robust, averaging 288,400 in the period 2004 – 2011. However, the positive performance was due mainly to high number of newly registered sole proprietorship and partnership (86% share), which means that these are mainly very small businesses that plan to remain small and do not want significant exposure to liability. This was especially true when there was double-digit increase in formation of sole proprietorships and partnerships during the 2008/2009 global economic crisis as laid off workers sought self employment. Nevertheless, the number of newly registered companies remained small during the entire period. 76938_i-82.indd Sec1:3276938_i-82.indd Sec1:32 5/14/12 12:20 PM5/14/12 12:20 PM
  • 97. SME MASTERPLAN 2012-2020 33 The World Bank uses entry density or newly registered limited liability enterprises as percentage of working age population (15-64 years) to gauge the business dynamism and entrepreneurship across countries. Malaysia stands out relatively high among emerging markets including the East Asia and Pacific region, but was still substantially below high income countries. The moderate interest in setting up limited liability companies in Malaysia could be partly linked to the relatively low level of entrepreneurship in the society. The 2011 Global Entrepreneurship Monitor (GEM) by the World Bank indicated that Malaysia compares less favourably vis-à- vis other countries due to the general lack of confidence and perceived capability in entrepreneurship. Findings by GEM indicated: • While a high number of respondents (74%) believe that the media pays attention to entrepreneurs and that successful entrepreneurs have high status in society and starting a business is a good career choice, only 37% saw good opportunities to start a business. Emerging markets (%) Developed countries (%) Media attention for entrepreneurship 74 82 76 65 50 57 62 47 n/a High status to successful entrepreneurship 51 86 73 69 78 55 67 81 n/a Entrepreneurship as a good career choice 52 86 73 73 55 26 61 52 n/a Perceived opportunities 37 43 49 57 35 6 11 33 36 Perceived capabilities 31 53 44 62 37 14 27 43 56 Fear of failure 30 31 36 27 42 42 45 36 31 Entrepreneurial intentions 9 28 43 46 6 4 16 9 11 Source : Global Entrepreneurship Monitor 2011 Malaysia Brazil China Chile Germany Japan Korea UK US 76938_i-82.indd Sec1:3376938_i-82.indd Sec1:33 5/14/12 12:20 PM5/14/12 12:20 PM
  • 98. Structural Characteristics of Malaysian SMEs234 • About one-third indicated lack of perceived capabilities and another one- third stated 'fear of failure' as having to prevent them from starting a business. • Only 9% who were not involved in entrepreneurial activity before stated their intention to venture into a business. • In other developed and emerging countries such as the United States, United Kingdom, Chile and Brazil, about 40-60% of the respondents believed that entrepreneurs had the capabilities and in many of these countries, they had actual entrepreneurial intention. (iii) Small number of firms contributes the most to the economy A detailed technical analysis to understand firm level behaviour was undertaken using the most comprehensive database available, i.e. for manufacturing firms from the 2000 and 2005 census data. The findings showed that young and fast-growing firms accounted for a significant share of gains in GDP and employment. • About 42% of the firms that existed in year 2000 ceased operations by year 2005. So the survival rate was about 58%. The failure was most pronounced among microenterprises but there were also failures among large firms. • Of those in operation, these firms hired 4% more workers during this period. • There was some degree of movement of firms across categories, with some graduating to bigger firms and vice versa. While 14% of medium-sized firms grew to large firms by 2005, a comparable share fell back to small firms. Some 16% of the large firms exited and another 13% fell back mainly to medium and small firms by 2005. • Firms that began operations after year 2000 were responsible for the 90% of the net job creation in the manufacturing sector in the period 2000 - 2005. 76938_i-82.indd Sec1:3476938_i-82.indd Sec1:34 5/14/12 12:20 PM5/14/12 12:20 PM
  • 99. SME MASTERPLAN 2012-2020 35 • Top 1 percentile of the fastest growing firms in terms of employment growth accounted for 70% of the additional GDP (RM65 billion) and 46% of the new jobs created (129,000) during the period 2000 - 2005. • These high growth firms were not limited to any particular sector or age group. Top performers were found across all the 19 manufacturing sub-sectors and across all age groups, with those under 5 years accounting for 16%. 76938_i-82.indd Sec1:3576938_i-82.indd Sec1:35 5/14/12 12:20 PM5/14/12 12:20 PM
  • 100. Structural Characteristics of Malaysian SMEs236 • Of importance is that all the high growth firms regardless of age and sub-sectors were medium-sized indicating that medium-sized firms were very important job creators. This is not surprising given that it is extremely difficult for microenterprises and small firms to expand rapidly due to physical and management constraints. • It was also observed that the fastest growing firms existed in the most competitive sectors indicating that competitive pressure forced firms to innovate and shed outdated technologies. (iv) Material share of informal sector In all countries, there is always some segment of the economy that are not formalised. These are enterprises operating without formal registration. However, a country with vibrant SMEs corresponds with a reduced level of informal or 'black market' activities. Based on a study by Schneider (2002), it is estimated that a material share of SMEs in Malaysia, i.e. about 31% of the Gross National Income is informal. The informal sector refers to establishments in the non- agriculture activities that are not registered with the Companies Commission of Malaysia or that employ less than 10 workers which are not registered by social security. These are 76938_i-82.indd Sec1:3676938_i-82.indd Sec1:36 5/14/12 12:20 PM5/14/12 12:20 PM
  • 101. SME MASTERPLAN 2012-2020 37 usually microenterprises where the owners are self-employed with one or few partners or work with family members and do not hire external workers. If just based on number of self-employed enterprises from the International Labour Office (ILO), then the estimate of the informal sector in Malaysia could be about 21% of total employment. Not only they do not contribute to GDP, these informal enterprises also do not usually pay taxes. As such, the informal sector usually creates a non-level playing field with the registered firms and deter fair competition and innovation from taking place. Informal sector is also linked to slow economic growth and poverty. As such, policies are usually designed to integrate the informal sector into the economic mainstream to fully tap their potential. These policies recognise the potential of the informal economy not only as an expression of need, and but more importantly to provide opportunity to these firms to have access to programmes and resources in order to contribute to the economy. 76938_i-82.indd Sec1:3776938_i-82.indd Sec1:37 5/14/12 12:20 PM5/14/12 12:20 PM
  • 102. Structural Characteristics of Malaysian SMEs238 76938_i-82.indd Sec1:3876938_i-82.indd Sec1:38 5/14/12 12:20 PM5/14/12 12:20 PM
  • 103. SME MASTERPLAN 2012-2020 39 chapter3 Impact Assessment of SME Development Programmes 76938_i-82.indd Sec1:3976938_i-82.indd Sec1:39 5/14/12 12:20 PM5/14/12 12:20 PM
  • 104. Impact Assessment of SME Development Programmes340 Impact Assessment of SME Development Programmes Various Government Programmes Since the early years, the Government has devoted significant resources to extend programmes to SMEs mainly through the national development plans. More than 15 Ministries and 60 Agencies have been involved in implementing these programmes. The motivation of the programmes was to assist SMEs given that they lag behind large firms in many dimensions of performance due to their size. Among the key constraints faced by SMEs are in terms of management ability and skilled workforce; access to finance and markets; inability to exploit economies of scale and lack of bargaining power; and access to technology and innovation. Procedures and regulations also disproportionately affect SMEs compared to large firms. Hence, Government programmes have been designed to address these constraints to promote growth, enhance competitiveness and create employment, in addition to fulfilling the socio-economic needs of SMEs given the prevalence of microenterprises which represent the bottom 40%. These programmes were in the form of financial assistance such as soft loans and grants, and provision of subsidised or free business support services including training on entrepreneurship, management and skills, technology upgrading, productivity improvement, market development and export promotion. 76938_i-82.indd Sec1:4076938_i-82.indd Sec1:40 5/15/12 5:33 PM5/15/12 5:33 PM
  • 105. SME MASTERPLAN 2012-2020 41 The National SME Development Council was established in 2004 mainly for greater policy coherence and coordination among the Ministries and Agencies towards achieving a common goal. Prior to that, different Ministries introduced programmes independently which often resulted in duplications or overlaps of programmes. The Council’s goal is to streamline programmes and to reduce duplications towards enhancing delivery and overall effectiveness of programmes. The Council is also responsible to formulate a common policy for SMEs in the country. In that regard, in the last seven years the Council has laid the foundation for a more holistic and comprehensive approach to SME development. Among its key achievements include: • Adoption of a standard SME definition nationwide; • Enhancement to the SME financing landscape; • Development of a comprehensive database on SMEs, including the Economic and SME Census 2011 (being finalised currently) and macro statistics; • Introduction of an annual plan on SME programmes and SME Annual Report to assess progress and development of SMEs; • Establishment of a holistic framework to coordinate SME programmes across Ministries and Agencies based on the three strategic thrusts, namely strengthening the enabling infrastructure; building capacity and capability; and enhancing access to financing; and • Setting up of a Central Coordinating Agency, i.e. SME Corporation Malaysia to oversee SME development. 76938_i-82.indd Sec1:4176938_i-82.indd Sec1:41 5/15/12 5:33 PM5/15/12 5:33 PM