KUALA LUMPUR: The Small and Medium Enterprises Association (Samenta) Malaysia has urged the government to focus on developing SMEs into unicorns and quasi-unicorns.
Samenta national president Datuk William Ng said some of the startup funds and intervention by the government should be funnelled to high-growth, high-impact SMEs, as it may bear better fruit.
“We have seen many examples of facilitation provided to the startup ecosystem, only to see these efforts benefiting regional neighbours as they get sold to larger players.
“If and when they turn profitable, these profits are expatriated overseas,” Ng said, adding that Samenta welcomes the Mid-Term Review of the 12th Malaysia Plan (12MP MTR).
He proposed that the government ensure export-ready SMEs are better facilitated through focused market linkage, branding and packaging design.
Venture funds and government-linked companies should also be encouraged to co-finance SMEs in merger and acquisition activities to better integrate their supply chain and create more SMEs with sufficient size to compete regionally and globally, Ng noted.
“Established SMEs are not only less risky investments but also have a stronger footing in global supply chains, compared to startups with unknown future affiliations,” he said.
Ng explained that the government is right in focusing on high-growth, high-value industries, which would have spill-over effects on SMEs and benefit from being part of the enlarged supply chain.
In order to help SMEs move up the value chain, as encapsulated by the Madani Economy framework and the revised 12MP, Ng said Samenta has been working closely with the Malaysia Productivity Corporation over the past three years to drive greater automation and digital adoption among SMEs and transform their mindset to focus on labour productivity, profitability and competitiveness.
“Hence, Samenta is committed to supporting the nation’s 1.2 million SMEs to move up the value chain, digitalise rapidly, and be more productive and competitive,” he said.
Samenta also applauded the plan to focus on the creative industry and design-led SMEs.
“We again suggest that the government consider a matching grant for packaging design and branding, to help our SMEs migrate from being mere original equipment manufacturers to brand owners while supporting our creative industry,” Ng said. – Bernama
