Measures Needed To Boost SME Growth To Ensure Desired Outcomes Achievable -- Malaysia's PM

PUTRAJAYA, Nov 12 (Bernama) -- The Malaysian government needs to put in place measures to step up the growth of small and medium enterprises (SMEs), particularly through e-commerce, to ensure that the longer term desired outcomes are achievable. Prime Minister Najib Tun Razak (seated, middle) said despite the current economic challenges, the ministries and agencies must remain steadfast in delivering the SME programmes under their purview. SME Corp, in a statement today, said the two issues were discussed at the 21st National SME Development Council meeting chaired by Najib, who is also Finance Minister, Friday. It said besides the relevant ministers, heads of key agencies and representation from Sabah and Sarawak, three new ministers joined as members of the council, namely, from Ministries of Education, Women, Family and Community Development as well as Youth and Sports. "This new line-up will ensure that a more inclusive and comprehensive consultation will benefit all segments of SMEs," it said. SME Corp said based on the latest indicators and survey results for the third quarter of 2016, SME performance will continue on a sustained growth path until the first quarter of 2017. "SME gross domestic product (GDP) is expected to be in the range of five-six per cent in 2016 and 2017 (2015: 6.1 per cent). "The growth is expected to be supported by domestic consumption and tourism activities which are closely related to SME performance," it said. It said in line with the declaration of 2017 as the 'Start-up and SME Promotion Year', the government had announced a further RM6.7 billion would be allocated for SME development in the 2017 Budget. "This takes into consideration the short-term needs of SMEs in cushioning the impact of the economic challenges and also the long-term development aspects," it said. The meeting discussed ways to resolve the implementation challenges faced by ministries and agencies in undertaking these measures, it said (photoBERNAMA). -- BERNAMA