Ministry Hopes for Double-Digit Export Growth in F&B to Saudi Arabia

KUALA LUMPUR, Feb 24 (Bernama) -- The Ministry of International Trade and Industry Ministry (MITI) has urged Malaysian entrepreneurs to seize the opportunity to participate in Saudi Arabia's food and beverage (F&B) industry, and hopes for a double-digit growth in exports for the sector. Its Minister, Mustapa Mohamed said Malaysia's F&B export to Saudi Arabia was currently only 10 per cent out of the total exports worth RM3.0 billion (about US$675.07 million) last year. He said the potential in saudi Arabia should be explored as many Malaysia's small and medium enterprises (SMEs) were involved in F&B. "With expansion of facilities in Makkah, Saudi Arabia may allow more people to perform umrah and haj pilgrimage. "The potential is huge, our F&B export should grow by double digit from about RM300 million which is low base," he told a press conference after launching the SME Bank Upward Migration and Acceleration Programme (i-SMART Programme), here Friday. MITI has allocated RM60 million (about US$13.5 million) for the i-SMART programme through SME Bank as the implementing agency. The minister urged all parties related to SMEs and start-ups to coordinate their efforts under one umbrella to be able to move to the next level. "Our SMEs are dynamic, but amid uncertain international economic environment, perhaps it's time to review the current SME Masterplan... on specific targets, such as on gross domestic product contribution, employment and export results," he added. Started as Skim Anjakan Usahawan, i-SMART aims to create SME entrepreneurs who can compete globally through an effective financial management, capacity building, strategic marketing, facilitation assistance and others from SME Bank. Meanwhile, SME Bank Group Managing Director Mohd Radzif Mohd Yunus said the bank would identify eligible entrepreneurs who would be nurtured through the i-SMART Programme. "Among the main criteria for the selection of entrepreneurs are: their business track record should show profits for three consecutive years, consistency in sales growth, Syariah-compliant business, owned at least 51 per cent by Bumiputera, and achieved the minimum level for risk-rating score by SME Corporation Malaysia," he said. He said the RM60 million fund would be disbursed within three years, depending on business needs of the companies. For a start, seven entrepreneurs have been selected to participate in the i-SMART programme. (photoBERNAMA) -- BERNAMA