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SMIDEC Development Programmes and Financial Assistance for SMEs

Learn about SMIDEC and their initiatives to support SMEs in Malaysia through capacity building programmes, financial incentives, and advisory services.

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SMIDEC Development Programmes and Financial Assistance for SMEs

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  1. SMIDEC DEVELOPMENT PROGRAMMES AND FINANCIAL ASSISTANCE FOR SMEs BY : MASLINDA ZULKIFLY LEGEND HOTEL, KUALA LUMPUR 30 JULY 2008

  2. ABOUT SMIDEC

  3. SMIDEC • Established under the Parliamentary Act, 539 on 2nd May 1996 • An agency under the Ministry of International Trade and Industry • Focal point for the overall development of SMEs in the country • Provides capacity building programmes and assistance through fiscal and non-fiscal incentives

  4. VISION To be the leading organisation in developing SMEs that contribute to the economic growth and enhancement of Malaysia’s competitiveness

  5. MISSION To transform SMEs to be vibrant, competitive and resilient and to be fully integrated into the manufacturing and services sectors

  6. FUNCTIONS • Promote, coordinate and implement programmes for the development of SMEs • Forge industrial linkages between SMEs and large companies/multinational corporations (MNCs) • Implement, coordinate and monitor financial assistance schemes • Provide technical and advisory support services • Collaborate with other local and international SME-related agencies

  7. PROFILE OF SMEs

  8. DEFINITION OF SMEs Annual sales turnover < RM25 million OR Full time employees <150 Manufacturing, Manufacturing Related Services and Agro -based Industry Annual sales turnover < RM5 million OR Full time employees < 50 Services, Primary Agriculture, Information and Communication Technology (ICT)

  9. 4,537 (0.8%) TOTAL ESTABLISHMENTS BY SIZE 12,610 (2.3%) 100,333 (18.2%) • Total establishments = 552,804 • No. of SMEs = 548,267 (99.2%) LARGE 435,324 (78.7%) MEDIUM SMALL MICRO Source: Census of Establishments & Enterprises 2005 – Profile of SMEs

  10. DISTRIBUTION OF SMEs BY SECTOR Agriculture(6.2 %) Manufacturing(7.2 %) Services(86.6 %) Source: Census of Establishments & Enterprises 2005 – Profile of SMEs

  11. CONTRIBUTION OF SMEs TO GDP (%) 37 32 23.1 19.7 8.4 9.6 3.9 4.3 Source: National SME Development Blueprint 2007

  12. CONTRIBUTION OF SMEs TO EMPLOYMENT (%) 57 56.4 33.9 35 14.5 15.1 8.1 6.9 Source: National SME Development Blueprint 2007

  13. SUPPORT FOR SMEs

  14. SUPPORT FOR SMEs Incentives and Financial Assistance Programmes SME Development Programmes

  15. SME DEVELOPMENT PROGRAMMES

  16. ENHANCEMENT PROGRAMME SME EXPERT ADVISORY PANEL (SEAP) OUTREACH PROGRAMMES SME DEVELOPMENT PROGRAMMES BRAND SME DEVELOPMENT PROGRAMME TECHNOLOGY & INNOVATION SKILLS UPGRADING ENTREPRENEURSHIP

  17. SMIDEC ENHANCEMENT PROGRAMME FOR SME s - AUTOMOTIVE SECTOR • Malaysia-Japan Industrial Cooperation (MAJAICO) • Initiated under Malaysia-Japan Economic Partnership Agreement (MJEPA) • 5-year project (2006-2011) • Improve productivity through Lean Production System • 150 projects to benefit from the Programme Identify Sector & SCORE Current On-Going Programme SMEs • CAPACITY BUILDING • Quality Control and Improvement of Standard • Waste Reduction • Inventory Management Control and Improvement • Reduction in rejection rate during production • Technology Transfer of Mould & Die • Technical Assistance

  18. ENHANCEMENT PROGRAMME FOR SME s - AUTOMOTIVE SECTOR …cont’d Benefits gained by companies under MAJAICO Programme • improvement in productivity from 30% to 200%; • reduction in unscheduled machine & tooling downtime from • 4 days to 2 days; • reduction in rejection rate from 5% to 2 %; • reduce stock inventory by 17% - improvement in space utilisation and housekeeping; • create opportunity for employees to contribute and make improvement in their working areas on a regular basis; and • potential to penetrate into the international market.

  19. SME EXPERT ADVISORY PANEL (SEAP) SMEs Visit ,Diagnose & Recommend • Improvements • Packaging & Labeling • Production capabilities • Compliance to Standards/ Certification • Lean Production System • Management & Financial Advisory 53 industry experts

  20. BRAND SME DEVELOPMENT PROGRAMME • OBJECTIVE • To promote and reinforce the value of individual SME brands. • TARGET • To promote, reinforce and sustain the value of individual SME brands through the building of a National Mark; • Promote domestic and global recognition and acceptance of the National Mark; • To enhance the acceptability of SMEs’ products and services in domestic and foreign markets; • To facilitate and accelerate SME knowledge and • appreciation in branding; and • 100 SMEs’ brands established overseas within four years.

  21. TECHNOLOGY AND INNOVATION National SME Innovation Focal Point SMIDEC Research Institutions/ Universities Banks/ Financial Institutions SMEs

  22. SMIDEC Members of the National SME Innovation Focal Point

  23. TECHNOLOGY AND INNOVATION …cont’d • Technology Database • (in collaboration with MASTIC) • - 270 technologies available for commercialisation • - 18,413 researchers’ profile available • SMIDEX‘07 : 23 technologies matched TECHMART in SMIDEC’s website • Technology Roadmap • - Completed Roadmaps → Electrical & Electronics • → ICT • → Biotech industry • - Work In Progress → Automotive Sector • → Plastics & Rubber

  24. SMIDEC ANNUAL SHOWCASE

  25. ENTREPRENEURSHIP

  26. ENTREPRENEURSHIP …cont’d UNIVERSITY - SME ATTACHMENT PROGRAMME University Education • Benefits to SMEs: • - exposure to the latest development of business practices and applications of technology; and • - improved ways of doing business. • Benefits to students: • - industry exposure and practical applications of their studies as well as enhance self confidence in doing business; and • - inculcate the spirit of entrepreneurship. Local & International Networking Local SMEs Students Linking SMEs to Universities to upgrade the capability of SMEs

  27. SKILLS UPGRADING Skills Upgrading Programme Enhancing Marketing Skills of SMEs Status: 22,571 employees trained(RM22.3 million) 80% grant on training fees

  28. SKILLS UPGRADING ...cont’d 35 SKILLS DEVELOPMENT CENTRES &PROFESSIONAL TRAINING PROVIDERS APPOINTED:

  29. FINANCIAL ASSISTANCE PROGRAMMES

  30. QUALIFYING CRITERIA • Companies incorporated under the Companies Act 1965 OR enterprises incorporated under the Registration of Business Ordinance 1956 OR Certificate of Practice by Regulatory Body • Fulfill definition of SMEs • At least 60% equity held by Malaysian • Possess valid premise license SECTOR COVERAGE • Manufacturing • Manufacturing Related Services • Services (Except Insurance and Financial Services)

  31. RM500,000 MATCHING GRANTS RM250,000 RM200,000 RM150,000 RM100,000 RM100,000 RM100,000 Matching Grant for Business Start-ups Matching Grant for Product and Process Improvement Matching Grant for Certification and Quality Management Systems Matching Grant forMarket Development Matching Grant for Development and Promotion of Halal Products Matching Grant for Enhancing Product Packaging Grant for RosettaNet Standard Implementation

  32. MATCHING GRANT FOR PRODUCT AND PROCESS IMPROVEMENT Provides grant to SMEs for Product Development and Product & Process Improvement. Eligible expenses : • Technology Feasibility Studies • Fees for technology transfer • Development of prototypes and system design • Product testing & registration • Marking and labeling • Machine & equipment for testing and calibration • Development & designing of equipment and machinery • Purchase of machinery and equipment • Initial patent registration/patent search/IP Protection • Specific Project Mission • Cleaner Production and Waste Treatment Project

  33. MATCHING GRANT FOR ENHANCING PRODUCT PACKAGING Designing and improving product packaging and labeling through appropriate packaging technology Eligible Expenses : • Related costs and services for designing, packaging, marking and labeling • Trade mark and patent registration • Purchase of related machinery and equipment

  34. Interest Rate: 2% • Max Loan: RM 3 million • Payment Period: 15 years • Interest Rate: 2% • Max Loan: RM 3 million • Payment Period: 15 years • Interest Rate: 2% • Max Loan: RM500,000 • Payment Period: 5 years

  35. NEW • 10 per cent of all value of all SMIDEC’s grants will be disbursed upon approval; • Interest loans for SMEs reduced from 4% to 2%per annum; and • Margin of financing increased from 85% to 90%.

  36. OUTREACH PROGRAMMES

  37. ENTERPRISE 50 AWARD PROGRAMME • Prestigious award recognising the achievements of Top 50 enterprising home-grown companies • Provide opportunities to benchmark against their peers 1996 - 2007 : • TOTAL NOMINATIONS - 1,310 • TOTAL ALUMNI - 386 • LISTED ON MALAYSIAN BOURSE - 41

  38. PUBLICATIONS Handbook on Policies, Incentives, Programmes and Financial Assistances SME Newslink : bi-monthly publication SME eNews : monthly e-mail blast Annual Report

  39. PUBLICATIONS …cont’d Brochures Training Directory

  40. PUBLICATIONS …cont’d Women Directory National SME Development Blueprint SME Annual Report Brochure for Services Sector

  41. OUTREACH CHANNELS SME BUSINESS CENTRE (19th FLOOR) Virtual SME Information Centre :info@smidec.gov.my /www.smidec.gov.my InfoLine : 1-300-88-1801 Business Advisory Services (BAS)

  42. T H A N K Y O U

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