27 June 2012

SMEs urged to build a broader brand portfolio

Small- and medium-sized enterprises (SMEs) are urged to move from the usual focus on building businesses to a broader branding concept in order to grow further.

The Small & Medium Industries (SMI) Association of Malaysia national president Teh Kee Sin said many SMEs today find it difficult to gain entry into certain markets.

"This might be because their products are still weak in terms of packaging and branding, which would unfairly reflect on the quality of the products," Teh said after the Media Prima Bhd (MPB) luncheon with SMI Association of Malaysia in Kuala Lumpur.

Also present at the luncheon were MPB chairman Datuk Johan Jaafar, MPB group managing director Datuk Amrin Awaluddin and New Straits Times Press group managing editor Abdul Jalil Hamid.

Teh said SMEs are expected to play an increasingly important role for the country to make the quantum leap in its development.

"We hope we can remake the SMEs, so that the sector can contribute more to the growth of the country's gross domestic product (GDP)," he said.

By 2020, Teh said, SMEs are expected to contribute 42 per cent to the country's growth.

"This is in line with the new economic model to boost SMEs' share in the GDP to develop Malaysia into a high-income nation."

Currently, SMEs' contribution to the country's GDP is at 32 per cent.

Commenting on the collaboration with MPB, Teh said the company will use MPB as a platform to boost the industry by promoting SMEs through MPB's media channels.

"We hope we can uplift the qualities of SMEs to move them up in line with the government's call for the transformation," he said.

Source: Business Times

18 June 2012

Business Apps boost for SMEs

A business performance and profit management solution, that allows small and medium enterprises (SMEs) instant access to their companies performance and profits, will be showcased on June 20 at the three-day SMIDEX12 Expo in Kuala Lumpur.

The Apps, developed by Ganana Malaysia under the name of Profitty, will enable SMEs to do business smarter, faster and more profitably.

Chief Executive Officer Raju Krishna said Profitty will help SMEs to regularly check performance and profit positions using their web-enabled devices or mobile phones to take quick corrective actions.

"It will help SMEs be more proactive by having the required business information at their fingertips to make informed decisions," he said.

Raju said the solutions are targeted to save costs for SMEs as an alternative to expensive business intelligence and analytic solutions.

"Many SMEs at present shy away from business intelligence tools because of their complexity and prohibitive costs.

"Many them depend on manual spreadsheets to tap such information and that too is available only at periodic intervals," he said.

The three-day Expo at the Kuala Lumpur Convention Centre starts on June 20.

So don't forget to visit the SMIDEX12 Expo ok? Lots of things and products designed specifically for SMEs.

10 May 2011

Phase one of plan to develop high-growth SMEs launched

The government recently rolled out the first phase of the master plan for the small- and medium-sized enterprises (SMEs), to stimulate their productivity and innovation levels to match those of a high income nation.    

Prime Minister Datuk Seri Najib Razak, in announcing this, said the plan (2011-2020) focuses on developing high-growth SMEs to become home-grown champions that spearhead the economy.
SME competitiveness needs to be developed further not only in the context of SME relations with the global market but also to enable them to compete in the local market in the context of globalisation and liberalisation, he said.
The Asean Free Trade Area and other multilateral agreements make the market more open than before.
Najib said requirements for licences and permits have been relaxed, following the analysis by the World Bank that SMEs here had too many requirements to fulfil in order to operate their businesses.
A pilot study on impact assessment by the World Bank on 15 SME programmes found the productivity level of SMEs in Malaysia was low at RM44,300 per worker - one-third of the large companies (RM143,000 per worker) and also lagged behind other countries.
"It has something to do more or less with corruption. Because of this, we will make obtaining licences and permits easy," he told a media briefing, after chairing the National SME Development Council meeting in Putrajaya.
He said the task will be given to the chief secretary to the government as the chairman of Pemudah (the Special Taskforce to Facilitate Business), who will later submit proposals to the government.
Najib said a "green lane" policy for SME products and services will be introduced to the government as well as government-linked companies.
"The opportunities will be given through central contracts to high-potential SMEs that have highly innovative products based on recommendation by the SME Corp and the Malaysian Technology Development Corp," he said.
Assistance to penetrate the global market is also being considered for those with potential but have failed to win any prizes.
The council also approved the SME Integrated Plan of Action 2011, which encompasses a total of 219 programmes being implemented with a financial commitment of RM5.9 billion in 2011, compared to 226 programmes for a total of RM7.1 billion in 2010.
SME contribution to GDP is expected to increase from 31 per cent in 2010 to 40 per cent by 2020 as value added growth of SMEs continued to outpace the overall economy .
The quantum leap in growth is highly dependent upon a significant increase of 75 per cent in productivity gains of SMEs, added Najib.
As at end February, SME financing outstanding stood at RM130 billion, accounting for 38.3 per cent of total business loan.

Source : Business Times