Ministry to boost contribution of SMEs to manufacturing

Entrepreneur Development Minister Mohd Redzuan Yusof says grants for R&D, as well as the prototype for the proposed national car, will be announced early next year.

KUALA LUMPUR: Entrepreneur Development Minister Mohd Redzuan Yusof aims to increase the contribution of small and medium enterprises (SMEs) in the manufacturing sector to 7% of the country’s gross domestic product (GDP) from the current 5.8% by 2020.

He said this can be achieved by creating a conducive environment for SMEs to thrive.

“There are a lot of things on the drawing board right now that are ready to take off.

“We have to stimulate the growth in the manufacturing sector,” he told reporters on the sidelines of the “Going Public: Unlocking the Potential of SMEs” capital market seminar here today.

During the tabling of the mid-term review of the 11th Malaysia Plan 2016-2020 in Parliament, the government said it aimed to increase contribution of SMEs to economic growth to 41% by 2020.

Last year, SME contribution to growth rose to 37.1% from 36.6% in 2016. This included the services, manufacturing and agriculture sectors.

Redzuan said the development of a strong and dynamic SME sector was vital for a vibrant and sustainable economy.

“However, fostering SME contribution requires a conducive framework and access to strategic resources.

“As such, the ministry is committed to ensuring the government’s effort towards entrepreneur and SME development will be holistic, integrated and targeted to pave the path for new opportunities and grow our capital market,” he said.

Meanwhile, Redzuan said grants for research and development, as well as the prototype for the proposed national car would be announced early next year.

“I will let the prime minister announce it.

“It will be quite significant as a catalyst and is enough to attract private participation in the special purpose vehicle that we are establishing now for the seed capital to boost the new national car project,” he added.