PUTRAJAYA, July 12 2012 (Bernama) -- Prime Minister Datuk Seri Najib Tun Razak today launched the Small Medium Enterprise Masterplan 2012-2020 (SME Masterplan 2012-2020), which will serve as a "game changer" for the sector.
The eight-year plan has four main objectives, namely, to drive business growth, increase the number of high-growth and innovative companies, increase productivity, as well as formalise the businesses.
Najib said the four objectives will contribute to the masterplan's vision to produce SMEs which can effectively compete on the global stage to enhance the wealth and prosperity of the people.
He said the "SME Masterplan 2012-2020: Catalysing Growth and Income", will also set the direction for SMEs by targeting an increase in the SME gross domestic product (GDP) contribution from 32 per cent in 2010 to 41 per cent in 2020.
He said this requires a big leap in the growth of SMEs which will be achieved through six high impact programmes and 32 other initiatives for success.
"Based on today's meeting, we emphasised the new 'breakout' strategy where where we want to encourage and support the micro enterprises which comprise 77 per cent of all SMEs, to be raised to the level of SMEs.
"We want to ensure that the micro enterprises can be turned into bigger enterprises," he said at the launch here,
Najib, who is also the Finance Minister, said when seen from a bigger perspective, the SME Masterplan is one which is really strategic and completes the existing government policies and initiatives.
He said as such, all important economic policies, including the development of SMEs must move in tandem to achieve the set goal, and the SME Masterplan, has to work to strengthen other macro policies which support initiatives under the
New Economic Model and Economic Transformation Programme.
He said the SME Masterplan will act as a "game changer" to enhance the SME contribution to the economy, and consequently bring the development of the SMEs to a higher level, through an increase in productivity and growth driven by innovation.
Najib said the role as well as function of the SME coordinating agency, that is SME Corp Malaysia, needs to be strengthened to enable it to act as a driver for the masterplan.
"The SME Masterplan is a life long plan which will remain relevant with the passage of time as it is not rigid but dynamic and flexible," he added.
He said the plan which was developed with the cooperation of the World Bank is for all sectors and all levels of society, including Bumiputera small and micro entrepreneurs.
Najib had earlier chaired the 13th National SME Development Council Meeting with Cabinet Ministers and heads of related agencies to discuss the direction and strategy for the overall implementation of the SME Masterplan.