PM Najib: SMEs Must Reposition To Tap Vast Opportunities Under AEC

KUALA LUMPUR, Nov 30 (Bernama) -- The Malaysian small and medium enterprises (SMEs) must reposition themselves to stay competitive and tap the vast business opportunities and markets across ASEAN following the establishment of the ASEAN Economic Community (AEC) by year-end. Malaysian Prime Minister Najib Razak (two, right) said, with AEC, there would be greater liberalisation of tariff and non-tariff barriers among ASEAN members. "There will be more opportunities for SME industries across the region. "It is important that Malaysian SMEs to either achieve relative economies of scale or to develop high-valued propositions in order for us to remain competitive vis-a-vis similar SMEs in other ASEAN countries," he said in his opening remark at the 19th National SME Development Council here Monday. He said this was also crucial as the Trans-Pacific Partnership Agreement, which was expected to come into effect in two years, would bring many benefits as well as challenges. "It is an opportunity for us to take stock of our market positioning, strength and ability to compete," he said. Najib, who is also Finance Ministger, said the SMEs recorded better growth rate compared to the overall economic growth. The annual average growth rate of the SME sector was 8.6 per cent from 2012 to 2014 compared with 5.4 per cent for the gross domestic product during the same period, he said. "This growth was achieved despite the increase in costs resulting from a reduction in subsidies, implementation of minimum wage and the goods and services tax," he said. (photoBERNAMA) --BERNAMA