Malaysia wants to be region's green energy hub

MALAYSIA is keen to become the regional centre for green energy, especially solar energy, a move which has attracted small and medium enterprises (SMEs), says International Trade and Industry Minister Datuk Mustapa Mohamed.
So far more than RM9.5 billion investments have been approved, including by major global names in the solar industry such as First Solar from the US and Q-Cells from Germany.
"These large manufacturers would need a lot of vendors to supply the inputs and components," Mustapa said.
"Given the extent of SME involvement in the economies of most countries, it makes sense to engage them in the process of increasing energy efficiency in production and delivery, and of services," he added.
The Malaysian German Chamber of Commerce and Industry executive director Alexander Stedtfeld said the expansion plans of companies like Q-Cells into the second and third phase would need SMEs to help develop the technology.
He said growth potential of the renewable energy sector is large, as in the case of Germany where the number of people working totalled 1.3 million compared with 700,000 in automotive sector.
EU ambassador Vincent Piket said the EU climate and energy package has legally binding 20:20:20 targets for 2020, with 20 per cent greenhouse gas savings, 20 per cent share for renewable energy and 20 per cent increase in energy efficiency.
"Investment in green growth will not just take our economy out of the slump, it will take it to a new level of sustainable growth in economic, social and environment terms," Piket said.

Improving skills, gaining value

IT is a tough market out there and individuals thinking of moving up the career ladder must be willing to better themselves and learn new skills, especially those that have a direct bearing on the industry they work in.
SMEs would do well to encourage their staff and managers to obtain professional qualifications from Universiti Industri Selangor (Unisel).
The university offers many professional programmes, with a focus on shipping, logistics and supply chain.
On offer are a variety of courses - corporate certificate, professional diploma and professional qualification levels - that are taught in a stimulating and inspiring environment in Unisel's campus in Shah Alam.
The courses are divided into three levels to enable those with different educational backgrounds to choose a programme that suits them best to obtain the necessary professional qualification.

The courses are best suited for those in the fields of manufacturing and bonded warehouses, enabling them to better their skills in efficiency and optimise operational costs.
The first level, the Corporate Certificate in Shipping and Supply Chain Management (CCS), provides an overview of shipping, transport, logistics and port management.

The duration of the course is between 9 and 12 months and is intended for working people who have had some exposure in maritime business activities and its related industries.
The programme will focus on specific issues affecting logistics, shipping and port management to provide them with knowledge on compliance with global standards and practices in port management.
The Professional Diploma in Shipping and Supply Chain Management (PDM) is designed for candidates who aspire to move to middle management positions with specialised functions including supply chain management, maritime management, transport planning and operations.
This is an 18-month course and is also suitable for graduates from other disciplines that are getting involved in the world of maritime and supply chain management for the first time.

The diploma would pave the way for its holder to be a certified member of the Malaysia Maritime Institute.
The Professional Qualifying Examination in Shipping and Supply Chain Management (PQE) bridges the gap between the undergraduate level of the professional diploma and the postgraduate standard of a master's degree.
It is a two-year programme and it is designed for the individual to develop knowledge and understanding of strategic issues, tools and techniques.
Unisel also offers MBA with eight specialisations, namely MBA in General Management, MBA in Logistics Management, MBA in shipping management, MBA in Local Government, MBA in Project Management, MBA in Facility Management, MBA in Occupational, Safety & Health (OSHA) and MBA in Islamic Finance for those interested in getting into positions of managers, logistics specialists or shipping specialists.

These courses are tailor-made to meet the needs and skills within these sectors that have the potential for rapid growth especially in a decidedly globalised world.
For information about the university and the courses taught can be obtained by emailing ugsm@unisel.edu.my or calling 03-5322 3532.

Malaysians have low risk appetite: Swiss Re survey

AMONG eight markets in the Asia Pacific, Malaysians have the lowest risk appetite during the global economic downturn, a survey sponsored by global reinsurance firm Swiss Re revealed.

The survey also uncovered a strong interest among Malaysians to use financial planners, unlike most other markets in the region.

Eric Gan, Swiss Re's director (Client Markets) said this appears to be a great business opportunity for the insurance industry.

The "Swiss Re Survey of Risk Appetite: Asia-Pacific 2009" was launched in the first quarter of 2009 to gather insights on the risk-taking attitudes of consumers and small-and medium-sized enterprise (SME) decision-makers between 20 and 40 years old across eight Asia-Pacific markets.

The survey covered four key consumer risk aspects - finance, career, health and lifestyle - as well as two key business risk aspects - growth and operation.

The results were consolidated into two indices - the Swiss Re Asia Pacific Consumer Appetite for Risk Index (CAFRI) and the Business Appetite for Risk Index (BAFRI) - to allow comparison between markets and for changes to be tracked over time.

Malaysia scored a CAFRI value of 41.5, the second lowest appetite for risk just ahead of India, while Singaporeans are higher risk takers and ranked fourth.

The ranking of Malaysians is attributable to their low appetite for taking finance, career and health risks.

Unlike most of their counterparts in the region, however, Malaysians are more willing to use professional advisers.

"It is encouraging that financial advisers are well accepted in Malaysia compared to other parts of Asia. This presents a clearopportunity for financial services providers to help bridge the significant gap between consumers who think about and consumers who actually have a plan to ensure financial security," he said.

Overall, effort is needed to raise public awareness of the importance of financial planning early on in life, and how qualified financial professionals might add value to this lifelong process.

Financial professionals also need to better understand how to reach young adults, Gan added. In terms of business risk, young SME leaders surveyed preferred organic growth and the stability and security of maintaining and growing their existing business.

An overwhelming 91 per cent claimed that they would make every effort to keep key staff in order to stay competitive.

MIA launch audit manual for SMEs

AUDITORS of small and medium-sized enterprises (SMEs) have a new tool at their disposal to help them understand and implement the International Standards on Auditing of Malaysia.

The Malaysian Institute of Accountants (MIA) has released an audit manual last month to assist smaller practitioners in applying the national auditing standards.

MIA president Nik Mohd Hasyudeen Yusoff said smaller firms often do not have the resources to regularly update their audit methodology to accommodate changes to standards and ensure compliance.
"With the guide, they can now play a more efficient role and at the same time compete with bigger players in the industry," he said.

The manual was developed based on the International Federation of Accountants auditing guide for SMEs.
The manual, which is available on MIA's website, provides a detailed analysis of the Malaysian Auditing Standards with an illustrative case study to further explain how the requirements apply to the audit of an SME.
Nik Mohd Hasyudeen said the manual is a practical 'how to' guide, based on typical SME audits, and covers a number of key areas.
This includes planning and performing risk assessment procedures, understanding the client and responding to risks, audit documentation, evaluating audit evidence and reporting.

"We hope this manual will provide Malaysian small and medium practitioners with the knowledge and tools needed to effectively apply auditing standards and keeping them cost effective," he said.
Nik Mohd Hasyudeen said as SMEs move up the value chain and enhance their competitiveness, access to resources will be crucial, thus, the need to ensure high quality of financial reporting is important to reflect the true value of these organisations.
"In times like these, the issue of access to resources is crucial, and having a quality financial statement will help them especially when applying for loans," he said.

SME Credit Bureau expects more firms to join bandwagon

SME Credit Bureau Sdn Bhd, which provides credit reports of small businesses, expects more small- and medium- sized enterprises (SMEs) in Malaysia to join its bandwagon by the end of 2009.

Its chief executive officer Alex Lim said so far, the bureau has managed to register more than 22,000 members compared with just 1,200 companies when it first started operations last year.

"It's quite an achievement for us as we have only been in operation for about 11 months," he said.

Members comprise a good spread of the SME spectrum, ranging from those in retail, manufacturing, hospitality and services, among others.

"Response has been overwhelming. We record an average of 1,000 new registration a month, and we expect the numbers to grow stronger," he said.

It was set up on June 3 2008 by Credit Guarantee Corp Malaysia Bhd, a subsidiary of Bank Negara Malaysia. The bureau is supported by a strategic partnership with Dun & Bradstreet Malaysia Sdn Bhd.

It acts as a central database containing credit-related information on SMEs and helps evaluate and ascertain their credit-worthiness, financial strengths and weaknesses.

SME member registration can be made through its online portal www.smecreditbureau.com.my

Top SMEs' revenue growth to ease

REVENUES of Malaysia's top 100 small businesses are expected to increase 9 per cent in 2009, almost half the growth rate last year, according to a report by SME Magazine.

The average revenue of the top 100 small- and medium-scale enterprises (SMEs) this year is RM 7.32 million, with a median revenue of RM8.2 million.

The magazine picked the companies based on criteria such as revenue and profit growth, business outlook and investment in training, among other things.

ICT uptake still not enough

THE local small and medium-sized enterprise (SME) industry has about 100,000 players, and growing.

Their combined business contributes about 32 per cent to the gross domestic product, and the industry itself employs some 56 per cent of the total workforce in the country.

So, it is important that SMEs continue to maintain a high productivity level to ensure that their contributions continue, lest it will impact the country's economic growth.

In this regard, it is encouraging to know that members in the local SME community have been increasingly looking at ICT to beef up their operational efficiency and explore new forms of channels to market their products.

This certainly augurs well as ICT can play an important role to help SMEs create business opportunities and combat pressures from competition.

Appropriate ICT use can help cut costs by improving internal processes, developing better products through faster communication with their customers, and better promotion and distribution of products through an online presence.

Nevertheless, observers reckon that while most SMEs are aware of the potential benefits of ICT, they are unsure of how to select the right solution.

This, in a way, has slowed down ICT uptake within a larger section of the SME community.

Based on a recent study of SMEs in manufacturing, only about 10 per cent have used enterprise resource planning software, 10 per cent have used customer relationship management software, 13 per cent have used computer-aided manufacturing, and about 25 per cent have used computer-aided design.

And only 30 per cent have a Web presence and use ICT extensively in their daily operations. The challenge now is to ensure that ICT usage is widespread, not only within a small group but also throughout the SME community.

This is important as SMEs not only face competition from peers, but also international outfits seeking to expand their presence here.

So, local SMEs have to be well-prepared, and this includes leveraging on technology to remain competitive.

While the Government can play a part by providing financial aid in the form of grants and other incentives, SMEs themselves need to be a believer of ICT as an enabler towards a better business future.

Govts urged to adopt tech-neutral standards

ASIA Pacific Economic Cooperation (Apec) member governments should adopt technology-neutral standards so that all small- and medium-scale enterprises (SMEs) have an equal chance of growing.

"We are encouraging governments to be tech-neutral so as not to favour one technology over the other because this ultimately means that only a select few companies stand to benefit," said Dr Ira Kasoff, deputy assistant secretary of commerce for Asia under the US Department of Commerce.

He was speaking on the last day of the two-day Apec SME Technology Entrepreneur Seminar in Kuala Lumpur, which saw nine recommendations put forward to Apec.

"SMEs play a strong role in technology innovation and, since they are affected by the economic downturn, programmes and policies are needed to help them bounce back and contribute to investment and employment markets," Kasoff said.

There was a call to reserve a percentage of government procurement of information and communications technology (ICT) for SMEs on atechnology-neutral, cost-effective basis.

"The Malaysian government has allocated a percentage of this ICT procurement for SMEs, but we would certainly want to increase that amount," Small and Medium Industries Development Corp (Smidec) chief executive officer Datuk Hafsah Hashim said.

The other recommendations were to provide strong intellectual property rights protection for SMEs, incentives for capital investment in and lending to small businesses in the ICT sector, and the means for SMEs to conduct research and development (R&D) during the recession.

"SMEs tend to change their business plans in an economic crisis and move into automation. So, ICT should be seen as an investment and not a cost while they re-train their employees with new skill sets," Hafsah said.

Smooth access to loans with help of SME Credit Bureau

FINANCIAL institutions and enterprises can now assess, evaluate, measure and monitor the credit risks of existing and potential partners, customers as well as other third parties, with the help of SME CreditBureau (M) Sdn Bhd.

Its chief executive officer Alex Lim said the objective of the bureau is, among others, to smoothen one of the greatest challenges faced by small and medium-sized enterprises (SMEs) - getting financing from banks to grow and expand their business.

When it comes to applying for loans, SMEs that do not have a solid credit history may face problems and this is where the bureau can help.

The SME Credit Bureau acts as a central database containing credit-related information on SMEs and helps evaluate and ascertain their credit-worthiness and financial strengths and weaknesses.

Lim said by having credit ratings for SMEs, financial institutions and trade credit providers are able to make more informed decisions when evaluating loan applications from industry players.

"With the government's emphasis on fostering entrepreneurship and encouraging local enterprises to expand regionally and globally, greater credit transparency will help local enterprises with their funding requirements to fuel their growth," he said.

The SME Credit Bureau was set up by Credit Guarantee Corp Malaysia Bhd (CGC), a subsidiary of Bank Negara Malaysia, last year. It is supported by a strategic partnership with Dun & Bradstreet (D&B) Malaysia Sdn Bhd.

Lim said the establishment of the bureau is also to assist SMEs position themselves strategically and benchmark against the more established SMEs and businesses in the country.

"We hope to improve the overall perception of the SMEs among financial institutions, credit guarantors and people who may want to do business with them," Lim said.

Through the bureau, he said, members will also gain fast and hassle-free access to comprehensive information of customers and their credit ratings.

"Banks and companies can buy business review reports and credit risk reports, which are core reports to SMEs and financial insititutions respectively from us," he said, noting that information is updated monthly and companies can check the accuracy if any dispute arises.

Member registration can be made through its online portal at www.smecreditbureau.com.my.

Online Help To Get Started

* MALAYSIA Entrepreneurs (http://www.entrepreneurs.my). This is a blog for local entrepreneurs and those planning to do business in Malaysia and around the region. Listings of entrepreneurial related events throughout the country are available here.

* SMEinfo (http://www.smeinfo.com.my). This portal is operated by Small and Medium Industries Development Corp, the secretariat to the National SME Development Council. Available in Bahasa Malaysia, English and Chinese, it has a special section on entrepreneurial development.

* National Association of Women Entrepreneurs of Malaysia (http://www.nawem.org.my). Nawem's objectives are to promote, develop and enhance the efforts and activities of women entrepreneurs.

Its roles include to receive, give and administer grants and donations of cash, property or services to programmes that will benefit its members.

* Technopreneurs Association of Malaysia (http://technopreneurship.biz/). TeAM was formed to further the interests of technopreneurs and to assist in the development of the digital economy in Malaysia.

Its immediate short-term objective is to act as a think tank and as a voice for technopreneurs. TeAM's medium-term objective is for the professional development of members and the industry in general while the longer-term objectives are to provide community education and to bridge the digital divide.

* Cradle Investment Programme (http://www.cradle.com.my). This is Malaysia's first development and preseed funding programme for technology ideas. It enables budding innovators and aspiring innovative entrepreneurs to make the jump from just having an innovative technology idea to becoming a successful start up.

CIP offers conditional grants of up to RM50,000 per tranche per idea (up to a maximum of three conditional tranches) for innovative technology ideas with good commercialisation potential, submitted by aspiring groups of technopreneurs.

* SME Bank (http://www.smebank.com.my). A one-stop financing and business development centre, the SME Bank aims to accelerate growth of local SMEs. Through better segmentation of SME financial and non-financial needs by industry, stage of growth and product and market potential, the bank strives to hasten the loan processing of eligible SMEs and provide timely advisory services.

Source:- NST Tech & U