KOTA KINABALU: A Sabah entrepreneur's group has lauded the state government’s RM15mil allocation to help small and medium enterprises (SME) in the state to develop their businesses.
Small and Medium Enterprise Association of Sabah (SME Sabah) president Datuk Foo Ngee Kee said the initiative, made under the SME Industry Assistance Programme, reaffirmed the government's commitment to developing SMEs and the youth in the state.
"SME Sabah is deeply appreciative of this unwavering support in product and market development," said Foo.
"We remain steadfast in our commitment to collaborate with the government and other stakeholders in ensuring Sabah's continued economic ascent under the Sabah Maju Jaya development plan," he added in a statement on Tuesday (Aug 15).
Chief Minister Datuk Seri Hajiji Noor had said on Sunday (Aug 13) that this RM15mil allocation was meant to enhance and strengthen assistance programmes for SMEs in Sabah.
He also said that the state has also made available RM6.17mil for the Department of Industrial Development and Research (DIDR) to promote Sabah products to the domestic and international markets.
He added that RM7.1mil would be distributed to the Sabah Economic Development Corporation (Sedco) to continue develop business premises, socio-economic outlets and organise entrepreneurship programmes this year.
He called on entrepreneurs to capitalise on this opportunity in order to improve their knowledge and skills to stay competitive at the international level.
Foo said the RM6.17mil allocation would enhance the promotion of Sabah's products at home and abroad through participation by SME in various trade exhibitions led or organised by DIDR.
He added that SMEs in Sabah lack scale of production due to limited market access and poor connectivity both internationally and locally.
"To compete with imported items, which are priced much lower than locally produced products, SMEs in Sabah need to quickly scale up their production through automation and market development to lower their costs of production," he said.
He added that the introduction of the Industrial Responsibility Food Safety Certification (MeSTI) and Halal certification were also necessary for Sabah SME products to comply with international requirements so as to be able to be exported globally.
On the RM7.1mil to Sedco, Foo said, this allocation in outlying non-urban townships will be a form of inclusive development for SMEs in these areas to market their produce and for the convenience of residents living in such locations.
"With this effort it is hoped that the cost of living and the standards of living in these outlying areas can be lowered and improved, respectively. In addition, it could spark other entrepreneurial ventures in these areas," he said.
Towards this end, he hoped the Sabah government could also consider developing the mobile truck business which would greatly aid SMEs who could not afford to rent shops.
