development programmes and financial assistance for smes by : maslinda zulkifly legend hotel, kuala...

DEVELOPMENT PROGRAMMES AND FINANCIAL ASSISTANCE FOR SMEs

BY : MASLINDA ZULKIFLY

LEGEND HOTEL, KUALA LUMPUR30 JULY 2008

ABOUT 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

SMIDECSMIDEC

To be the leading organisation in developing SMEs that contribute

to the economic growth and enhancement of Malaysia’s

competitiveness

VISIONVISION

To transform SMEs to be vibrant, competitive and resilient and to be fully integrated into the manufacturing and

services sectors

MISSIONMISSION

FUNCTIONSFUNCTIONS

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

PROFILE OF SMEs

DEFINITION OF SMEsDEFINITION OF SMEsDEFINITION OF SMEsDEFINITION OF SMEs

Services, Primary Agriculture, Information

and Communication Technology (ICT)

Annual sales turnover

< RM5 million

OR

Full time employees

< 50

Manufacturing, Manufacturing Related

Services and Agro -based Industry

Annual sales turnover

< RM25 million

OR

Full time employees

<150

435,324 (78.7%)

100,333 (18.2%)

12,610 (2.3%)

4,537 (0.8%)

Source: Census of Establishments & Enterprises 2005 – Profile of SMEs

• Total establishments = 552,804

• No. of SMEs = 548,267 (99.2%)

• Total establishments = 552,804

• No. of SMEs = 548,267 (99.2%)

TOTAL ESTABLISHMENTS BY SIZE

TOTAL ESTABLISHMENTS BY SIZE

MICRO

SMALL

MEDIUM

LARGE

Services(86.6 %)

Agriculture(6.2 %)Manufacturing

(7.2 %)

Source: Census of Establishments & Enterprises 2005 – Profile of SMEs

DISTRIBUTION OF SMEs BY SECTOR

DISTRIBUTION OF SMEs BY SECTOR

(%)

Source: National SME Development Blueprint 2007

32

37

3.9 4.3

8.4 9.6

19.723.1

CONTRIBUTION OF SMEs TO GDP

CONTRIBUTION OF SMEs TO GDP

(%)

Source: National SME Development Blueprint 2007

8.1 6.9

14.5 15.1

33.9 35

CONTRIBUTION OF SMEs TO EMPLOYMENT

CONTRIBUTION OF SMEs TO EMPLOYMENT

5756.4

SUPPORT FOR SMEs

SUPPORT FOR SMEs

SMEDevelopmentProgrammes

Incentives and

FinancialAssistance

Programmes

SME DEVELOPMENT PROGRAMMES

SME EXPERT ADVISORY

PANEL (SEAP)

ENTREPRENEURSHIP

ENHANCEMENT PROGRAMME

TECHNOLOGY & INNOVATION

OUTREACH PROGRAMMES

SKILLS UPGRADING

BRAND SME DEVELOPMENT PROGRAMME

CAPACITY BUILDINGQuality Control and Improvement of StandardWaste ReductionInventory Management Control and ImprovementReduction in rejection rate during productionTechnology Transfer of Mould & DieTechnical Assistance

CAPACITY BUILDINGQuality Control and Improvement of StandardWaste ReductionInventory Management Control and ImprovementReduction in rejection rate during productionTechnology Transfer of Mould & DieTechnical Assistance

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

ENHANCEMENT PROGRAMME FOR SME s - AUTOMOTIVE SECTOR

ENHANCEMENT PROGRAMME FOR SME s - AUTOMOTIVE SECTOR

Identify Sector

& SCORE

Current On-GoingProgramm

e

Current On-GoingProgramm

eSMEs

ENHANCEMENT PROGRAMME FOR SME s - AUTOMOTIVE SECTOR …cont’d

ENHANCEMENT PROGRAMME FOR SME s - AUTOMOTIVE SECTOR …cont’d

Benefits gained by companies under MAJAICO Programme

SMEs

53 industry experts

Visit ,Diagnose & Recommend

SME EXPERT ADVISORY PANEL (SEAP)

SME EXPERT ADVISORY PANEL (SEAP)

Improvements

Packaging & LabelingProduction capabilitiesCompliance to Standards/ CertificationnLean Production SystemLean Production SystemManagement & Financial AdvisoryManagement & Financial Advisory

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.

BRAND SME DEVELOPMENT PROGRAMME

BRAND SME DEVELOPMENT PROGRAMME

TECHNOLOGY AND INNOVATIONTECHNOLOGY AND INNOVATION

National SME Innovation Focal Point

SMIDEC

SMEs

Banks/FinancialInstitutions

Research Institutions/Universities

Members of the National SME Innovation Focal Point

TECHNOLOGY AND INNOVATION…cont’d

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

Technology Roadmap

- Completed Roadmaps → Electrical & Electronics → ICT → Biotech industry

- Work In Progress → Automotive Sector → Plastics & Rubber

-

TECHMARTin SMIDEC’s

website

SMIDEC ANNUAL SHOWCASE

SMIDEC ANNUAL SHOWCASE

ENTREPRENEURSHIPENTREPRENEURSHIP

• Benefits to SMEs:- exposure to the

latest development of business practices and applications of technology; and

- improved ways of doing business.

• 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.

• 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.

ENTREPRENEURSHIP…cont’d

ENTREPRENEURSHIP…cont’d

UNIVERSITY - SME ATTACHMENT PROGRAMME

Local SMEs Students

University Education

Linking SMEs to Universities to upgrade the capability of SMEs

Local & International Networking

SKILLS UPGRADINGSKILLS UPGRADING

EnhancingMarketing

Skills of SMEs

Skills Upgrading

Programme

80% grant on training fees

Status:22,571 employees trained

(RM22.3 million)

35 SKILLS DEVELOPMENT CENTRES &PROFESSIONAL TRAINING PROVIDERS

APPOINTED:

SKILLS UPGRADING ...cont’d

SKILLS UPGRADING ...cont’d

FINANCIAL ASSISTANCE PROGRAMMES

FINANCIAL ASSISTANCE PROGRAMMES

Manufacturing

Manufacturing Related Services

Services (Except Insurance and Financial Services)

QUALIFYING CRITERIAQUALIFYING CRITERIA

SECTOR COVERAGESECTOR COVERAGE

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

Matching Grant for Business Start-ups

Matching Grant for Product and Process Improvement

Matching Grant for Certification and Quality Management Systems

Matching Grant for Market Development

Matching Grant for Development and Promotion of Halal Products

Matching Grant for Enhancing Product Packaging

Grant for RosettaNet Standard Implementation

RM100,000

RM500,000

RM100,000

RM200,000RM250,000

RM100,000

RM150,000

MATCHING GRANTS

MATCHING GRANTS

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

MATCHING GRANT FOR PRODUCT AND PROCESS IMPROVEMENT

MATCHING GRANT FOR PRODUCT AND PROCESS IMPROVEMENT

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

MATCHING GRANT FOR ENHANCING PRODUCT PACKAGING

MATCHING GRANT FOR ENHANCING PRODUCT PACKAGING

• 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

• 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%.

NEW

NEW

OUTREACH PROGRAMMES

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

ENTERPRISE 50 AWARD PROGRAMME

ENTERPRISE 50 AWARD PROGRAMME

Handbook on Policies, Incentives, Programmes and Financial Assistances

SME Newslink : bi-monthly publication

SME eNews : monthly e-mail blast

PUBLICATIONSPUBLICATIONS

Annual Report

PUBLICATIONS …cont’dPUBLICATIONS …cont’d

Training Directory

Brochures

PUBLICATIONS …cont’dPUBLICATIONS …cont’d

Women Directory

National SME DevelopmentBlueprint

SME Annual Report

Brochure for Services Sector

OUTREACH CHANNELSOUTREACH CHANNELS OUTREACH CHANNELSOUTREACH CHANNELS

Business Advisory Services (BAS)

Virtual SMEInformation Centre :

info@smidec.gov.my /www.smidec.gov.my

InfoLine :1-300-88-1801

SME BUSINESS CENTRE (19th FLOOR)

A N

Y UO

KT H