SME sector welcomes Government’s move to redefine criteria

PETALING JAYA: Small and medium enterprise (SME) sector leaders have lauded the Government’s move to redefine the SME’s criteria in terms of annual turnover and workforce.

Branding Association of Malaysia president Datuk Eric Chong applauded the move, saying that SME classifications needed to be timely.

“The current definition is outdated and has not factored in gross domestic product (GDP) growth and inflation at the same time,” he said.

Prime Minister Datuk Seri Najib Abdul Razak was quoted by Bernama as saying that the new criteria for SMEs in the manufacturing sector had been changed to companies with an annual turnover of less than RM50mil with worker numbers not exceeding 200 from the current criteria of less than RM25mil in revenue and less than 150 workers.

The value threshold for the services sector has also been raised, with SMEs being defined as firms with annual sales not exceeding RM20mil or not more than 75 workers. At present, they are defined as having less than RM5mil in annual sales or less than 50 employees.

Najib, who chaired the 14th National SME Development Council comprising 16 ministries and agencies at Putrajaya yesterday, also added that apart from the various programmes and funding, a National SME Advisory Panel would be formed to gather inputs and formulate strategies to create world-class Malaysian SMEs.

Government to continue helping SMEs

KUALA LUMPUR: The Government has assured small and medium enterprises of continued assistance for the sector to play a more cohe-sive role as the nation's engine of growth as planned, said the Prime Minister.

Datuk Seri Najib Tun Razak said the SME sector recorded many achievements and that the Government played an integral role in their success stories.

Najib said SME presently contributed 32.5% to Malaysia's gross domestic product (GDP) and the target was to reach 41% by 2020.

He pointed out that without easy access to loan facilities, including from Tekun the special fund set up to assist the sector it would be almost impossible for SME entrepreneurs to conduct businesses.

Najib: SMEs must remember govt assistance

KUALA LUMPUR: Prime Minister Datuk Seri Najib Tun Razak urged small and medium entrepreneurs (SMEs) to be dynamic and not forget the assistance and opportunities provided to them by Barisan Nasional.

He said the government had provided start-up loans to 250,000 SMEs through the Entrepreneur Group Economic Fund (TEKUN).

"Don't forget the government's help. Everyone gets the assistance, both those who support and don't support us.

It's sad sometimes however, when we put in so much effort but get criticised for it.

"Most importantly, people now realise who has been helping them all this while. If we get the people's mandate, not only will TEKUN be able to generate thousands of entrepreneurs but the nation can achieve developed status as well," he said.

He was speaking at the opening of the 2013 TEKUN Nasional Entrepreneurs Convention and Expo, at the Putra World Trade Centre, here Saturday.

Also present were Agriculture and Agro-based Industry Minister Datuk Seri Noh Omar and TEKUN Nasional managing director and chief executive officer Datuk Abdul Rahim Hassan.

Najib advised entrepreneurs to strategise their businesses well in order to expand to the international market.

He said business was similar to politics, in that all promises to customers must be delivered so that trustworthiness is maintained. - Bernama

(Source: The Star Online)