Published: Thursday July 12, 2012 MYT 12:09:00 PM
Updated: Thursday July 12, 2012 MYT 2:34:53 PM
Najib unveils masterplan to increase SME GDP to 41% in 2020 (Update)
By LEE YEN MUN
PUTRAJAYA: Datuk Seri Najib Tun Razak has launched the SME Masterplan (2012-2020) which the Prime Minister has described as a game changer' to take the small and medium enterprises to a higher level.
Aimed at increasing the SME gross domestic product (GDP) contribution from 32% (2010) to 41% in year 2020, the plan consists of six high-impact programmes and 32 initiatives.
“The initiative is expected to achieve four main objectives, namely to propel business growth, increase the number of high-growth and innovative companies, increase productivity, and to formalise these businesses,” Najib said at the launch Thursday.
“This masterplan is a life-long plan that will remain relevant even with the change of time.
“It is not something that is cast in stone but a plan that is dynamic and flexible, which will adapt to environmental changes to achieve optimum results and encourage growth and investments of the SME in the economy,” Najib said.
Among other initiatives, the plan contains what Najib has called a "break-out strategy" to encourage micro-enterprises to attain SME status.
Micro enterprises currently make up the bulk of SME in the country at 77%.
To execute the eight-year plan, the role of the SME Corporation as the central coordinating agency will be reinforced and strengthened as it leads in the implementation of the masterplan, Najib said.
“One of the high-impact programs in the masterplan also aims to empower the group belonging to the lowest 40% in the income pyramid.
“Meanwhile, SME which record rapid growth will receive the Government's support so that they can step up their success and become homegrown champions,” he said.