Executive Summary.pdf - SME Corporation Malaysia

8
SME MASTERPLAN 2012-2020
• Small number of firms contributes the
most to the economy. Findings showed that
fast-growing firms accounted for 70% of the
additional GDP and 46% of the additional
employment created in the period 2000 –
2005; and
• Material share of informal sector in the
economy. It is estimated that the informal
sector accounts for about 31% of the Gross
National Income (GNI) and these are usually
microenterprises where the owners are selfemployed
with very few partners.
Positive Impact of SME
Development Programmes
For the first time, the Government in collaboration
with the World Bank undertook an impact evaluation
involving rigourous technical assessment on 15
SME development programmes. The findings
showed positive results from these programmes.
In particular, the Human Resource Development
Fund (HRDF) had shown a strong positive impact
on investment, capital intensity and productivity.
The rest of the programmes on non-human
resource development had also indicated positive
impact on capital intensity, total factor productivity
(TFP), employment, as well as total output and
value-added. The analysis concluded that every
1% increase in programme support will result on
average 1 - 5% gain in performance. However,
there was limited impact on labour productivity
and no impact on wages.
During the Ninth Malaysia Plan period (2006 –
2010), a total of RM26 billion was spent in SME
development programmes, representing 11.6%
of the total development expenditure during the
period. The programmes were aimed to address
constraints faced by SMEs and are categorised
under the three strategic thrusts, namely
enhancing access to financing; building capacity
and capability; and strengthening enabling
infrastructure. While there was evidence on the
impact of these programmes at the macro level
as seen in the encouraging performance of SMEs
in recent years, there was uncertainty on whether
the result was due to the effectiveness of the
programmes or merely from the synergistic effects
of improved coordination under NSDC or due to
both reasons.