Contribution of SMEs to Malaysian GDP rising
The contribution of small and medium enterprises (SMEs) to Malaysia's gross domestic product is expected to rise to 37 percent by 2010, up from 32 percent in 2005.
According to the SME Annual Report 2006 released by Bank Negara's National SME Development Council on Thursday, the SMEs contribution in total export accounted to about 19 percent in 2005 and the government hoped to increase it to 22 percent by 2010.
The report also said the programmes and initiatives for SME development would, therefore, be intensified to achieve the targets.
In recognition of the importance of the SME sector, the government has made the development of SMEs a high priority. Strategies under the Ninth Malaysia Plan are focused on acquiring technologies to propel SMEs up the value chain in the manufacturing, agriculture and services sectors. The priority accorded to developing domestic SMEs is further reiterated in the Third Industrial Master Plan.
The government has allocated 3.7 billion ringgit (US$1.06 billion) this year to implement about 189 programmes for the SME sector.