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MSC Malaysia InnoTech Johor SMIDEC

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  • Number of companies n picture
  • Notes:The surge in numbers in 2007 were contributed to the Special Project Mission to Qingdao, China and SMEs linked to British Telecom under GIRC.
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    • 1. SME DEVELOPMENT by Fadzilah Ahmad Din SMIDEC fadzilahad@smidec.gov.my
    • 2. OUTLINE • About SMIDEC • Overview of SME’s in Malaysia • Financial Assistance • SME Development Programme Page 2
    • 3. 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 Page 3
    • 4. FUNCTIONS 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 Page 4
    • 5. OVERVIEW OF SME’S IN MALAYSIA FACTS & FIGURES Page 5
    • 6. DEFINITION OF SMEs Annual sales turnover < RM25 million Manufacturing, Manufacturing Related Services and Agro - OR based Industry Full time employees <150 Annual sales turnover Services, Primary Agriculture, < RM5 million Information and OR Communication Technology (ICT) Full time employees < 50 6 Page 6
    • 7. DEFINITION OF MICRO, SMALL AND MEDIUM CATEGORY MICRO SMALL MEDIUM Manufacturing, sales turnover RM250,000 > sales RM10 mil. > sales Manufacturing- < RM250,000 turnover < RM10 mil. turnover < RM25 mil. related services & OR OR OR Agro-based full time 5 > full time 51 > full time Industries employees < 5 employees < 50 employees < 150 Services, Primary sales turnover RM200,000 > sales RM1 mil. > sales Agriculture and < RM200,000 turnover < RM1 mil. turnover < RM5 mil. Information & OR OR OR Communication full time 5 > full time 20 > full time Technology (ICT) employees < 5 employees < 19 employees < 50 7 Page 7
    • 8. 4,537 (0.8%) 12,610 (2.3%) TOTAL ESTABLISHMENTS BY SIZE 100,333 (18.2%) • Total establishments = 552,804 435,324 (78.7%) • No. of SMEs = 548,267 (99.2%) LARGE MEDIUM SMALL MICRO Source: Census of Establishments & Enterprises 2005 – Profile of SMEs 8 Page 8
    • 9. DISTRIBUTION OF SMEs BY SECTOR Agriculture Manufacturing (6.2 %) (7.2 %) Services (86.6 %) Source: Census of Establishments & Enterprises 2005 – Profile of SMEs 9 Page 9
    • 10. SMEs AND THEIR IMPORTANCE TO THE MALAYSIAN ECONOMY SMEs Contribute: 32 per cent to GDP 56.4 per cent to Employment; and 19 per cent to Export; 10 Page 10
    • 11. SMIDEC SME SUPPORT Financial Development FOR Assistance Programmes SMEs Programmes Page 11 11
    • 12. SMIDEC 12 Page 12
    • 13. SMIDEC Globally Competitive High 4. Maturity Stage Technology 3. Expansion Level 2. Growth 1. Start-up Stage Low Time Assistance 2. Growth 3. Expansion 4. Maturity provided  Enhancing Product • Market Development  Product & Process 1. Start-up Stage Improvement Packaging • Soft Loan for ICT Adoption • Business start-up  Certification & Quality  Soft Loan for ICT Adoption • SLSMEs • Enhancing Marketing Management Systems  SEAP Skills of SMEs  Skills Upgrading  Market Development  SLSMEs  Market Development  SLSMEs  SLSMEs Page 13
    • 14. SMIDEC FINANCIAL ASSISTANCE PROGRAMMES Matching • 50% of the approved project cost is borne by the Grant Government and the remainder by the applicant Soft • Low interest rate Loan • Longer repayment period Page 14 14
    • 15. SMIDEC RM500,000 MATCHING GRANTS FOR THE RM250,000 RM200,000 MANUFACTURING SECTOR RM150,000 RM100,000 RM100,000 RM100,000 Matching Grant for Business Start-Up 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 Page 15 15
    • 16. SMIDEC Improving and Upgrading Business Start-Ups of Existing Services and (RM100,000) Processes (RM500,000) FINANCIAL ASSISTANCE SCHEME FOR SMEs IN THE SERVICES SECTOR Advertisement and Certification and Quality Promotion Management Systems (RM50,000) (RM250,000) Page 25 25
    • 17. • Interest Rate: 2% • Max Loan: RM3 million • Payment Period: 15 years • Interest Rate: 2% Soft Loan for • Interest Rate: 2% • Max Loan: RM3 million Factory • Max Loan: RM500,000 • Payment Period: 15 years Relocation • Payment Period: 5 ½ years (SLFR) Soft Loan for Soft Loan for SMEs ICT Adoption (SLSME) (SLICT) Soft Loan Schemes Page 26 26
    • 18. SMIDEC SME DEVELOPMENT PROGRAMMES 1. INDUSTRIAL LINKAGE PROGRAMME 2. SKILLS UPGRADING PROGRAMME 3. OUTREACH PROGRAMMES 4. SME COMPETITIVE RATING FOR ENHANCEMENT (SCORE) 5. ENTERPRISE 50 AWARD PROGRAMME 28 Page 28
    • 19. SMIDEC SME DEVELOPMENT PROGRAMMES 6. NATIONAL WOMEN ENTREPRENEUR AWARD (NWEA) 7. BUMIPUTRA ENTREPRENEUR ENHANCEMENT PROGRAMME ( BEEP) 8. SME – UNIVERSITY INTERNSHIP PROGRAMME 9. TECHNOLOGY AND INNOVATION PROGRAMME 10. SME EXPERT ADVISORY PANEL (SEAP) 11. NATIONAL MARK OF MALAYSIAN BRAND 29 Page 29
    • 20. INDUSTRIAL LINKAGE PROGRAMME SMEs MNCs/LSIs Global Supplier Programme • Integrating SMEs into the supply chain of the MNCs/Large Companies • Promoting competitive and capable SMEs to become suppliers to MNCs/Large Companies 30 Page 30
    • 21. SKILLS UPGRADING PROGRAMME Enhancing Marketing Skills Upgrading Skills 43 SKILLS DEVELOPMENT CENTRES & Programme PROFESSIONAL TRAINING PROVIDERS APPOINTED: Status (as at May 2009) : 33,789 employees trained 80% training grant on the course fee (RM32.24 million) 31 Page 31
    • 22. OUTREACH CHANNELS SME BUSINESS CENTRE (19th FLOOR) Virtual SME InfoLine : Information Centre : 1-300-88-1801 info@smidec.gov.my / www.smidec.gov.my Business Advisory Services (BAS) 32 Page 32
    • 23. Publications SME Newslink SME eNews Women Training Entrepreneur Directory Directory Policies, Incentives, Step by Programmes & Annual Step Guide Brochures Financial Assistance Report - Starting a for SMEs Business 33 Page 33
    • 24. SME COMPETITIVE RATING FOR ENHANCEMENT (SCORE) As a tool to evaluate and track SME’s capabilities and performance in management, operation management, technology adoption, certification initiatives, financial capability and marketing capability. As a basis to identify: SME • Weaknesses of SMEs as more focused approach and provide integrated, hand-holding assistance to SMEs; • Facilitating linkages of potential Visit & SCORE SMEs with large companies/ MNCs / retailers ; and • To facilitate and identify suitable financial assistance for the development of SMEs 34 Page 34
    • 25. Score - Manufacturing & Manufacturing Related Services Model • Corporate Planning • Sales • Technology & Innovation • Average Growth Management • Export • Human Capital Development • Marketing • IT Adoption • Customer Satisfaction Management Business • Practice of Continuous Improvement Capability Performance • Current Assets • Product Certification • Current Liabilities • Certification (Basic & • Gearing Ratio Advance Requirement) Quality Financial • Profit • Awards System Capability Innovation Technical Production Capability • Intellectual Property Rights Capacity • Product & Process Improvement • No. of Trained Personnel • Capability of Products & • MTS Ratio Process Improvement Activities • Types of Technology Utilised • Capital Investment per Employee (CIPE) • Factory Automation Level • Machine Utilisation 35 Page 35
    • 26. •Vision & Mission • Annual Sales •Management Team •Export Sales •Reward System •Business growth and expansion •Strategy •Customer Satisfaction & Awards •Training •Customer Management •Risk Management •Knowledge Management Management Business Capability Performance •Staff Recruitment •Staff Retention • Paid Up Capital •Training Talent Financial •Current Assets & Liabilities •Knowledge Development Capability •Profitability Management Retention Marketing Operation Capability Management •Allocation for Marketing Innovation •Qualification and Staffing •Standard Operating Procedure Activities (SOP) •Channels of Marketing •IPR •Project Management •Customer Profiling •Product & Process Activity •Implementation Methodology •Marketing Strategy •R&D •After Sales Service •Brand Strategy •Culture of Innovation •Awards •Channels of Marketing 36 Page 36
    • 27. SCORE RATING-ICT No Star Very basic operation Lack of experience in ICT sector Poor business revenue growth; (new); Poor financial Below par financial performance; performance; Minimal Processes are in place, but operational standards; Limited development needed to be or no marketing/branding compliant within entire presence; Lack of innovation organization; Has a rudimentary capability marketing and brand presence Slight business growth, Good business revenue growth, competitive in domestic market; highly experienced in ICT Exceptional business growth, highly Average financial performance; sector, globally competitive; experienced in ICT sector, excellent Some processes in place although Good financial performance and recognition and globally not fully compliant; Keen to capability; Good operational competitive; Proven excellent develop a brand presence but is capability with some form of financial performance and growth on the cusp of market recognition; process in place; Has a potential; Excellent organizational Possesses valid but unclear career marketing & branding system in capability in compliance with path within company; limited place, but may not be recognized standards; Effective management of knowledge assets recognizable industry-wide; marketing capability; Excellent Some innovation process in innovation management and place; Good management of capability; High dedication in talent knowledge asset, adopts a semi- development, clear career aggressive employee retention development path program Page 37
    • 28. SCORE - DISTRIBUTIVE TRADE MODEL • Sales Turnover & Growth • Business Planning / Strategy • Profit Margin • Human Capital Development • Customer Services • Reward System • Business Growth & • Job Segregation / Management Structure Expansion • Suitability of Location • Accessibility Management Business • Current Assets & Liabilities Capability Performance • Liquidity & Gearing Ratio • Premise • Creditor's Aging • Insurance Financial • Profitability • Quality Standards Compliance to Capability Requirements Marketing Operation Capability Stock Management • Promotional Activities Management •Qualification & Staffing • Customer Retention •Experience • Business Value •ICT Adoption & Utilisation • Stock Policy Proposition •Standard Operating Procedures • Stock Management • Sourcing Strategy 38 Page 38
    • 29. SCORE - CONSTRUCTION MODEL •Sales Turnover & •Business Planning Average Growth(3 yrs) •Human Resource Development •Client Satisfaction •Reward System •Order Book •Management Structure Management Business Capability Performance •Product & Process Improvement •Liquidity & Gearing Ratio •Awards Best Financial •Net Worth/Profit •Quality Standards Practices •Profit Margin Capability Procurement Management Technical •Technical Compliance Project Capability •Cost Management Management •Procurement Policy •Qualification & Staffing •Materials Management •Experience •Quality Management •Past Project Performance Risk Management •Area of Specialisation •ICT Utilisation 39 Page 39
    • 30. Score – Maintenance, Repairing & Overhaul Model • Vision & Mission • Annual Sales •Reward System • Export Sales • Strategy • Business growth and expansion • Training • Customer Satisfaction • Innovation Culture • Customer Management •After Sales Service Management Business • Basic Compliance Capability • Paid Up Capital • Continuous Improvement Performance • Current Assets & Liabilities Activities Quality Financial • Profitability •Awards Capability System Technical Operational Capability Management Innovation • Capital Investment • Staff Recruitment per Employee (CIPE) • Types of Technology Utilised • Factory Automation Level • Facilities • Machine Utilisation • IPR • Standard Operating Procedure (SOP) • Product & Process Activity • ICT Utilisation • Product & Process Improvement Capability 40 Page 40
    • 31. STATUS - SCORE Total SCOREd - 1,653 SMEs 65 (4%) 156 (9%) 267 (16%) 472 (29%) 693 (42%) No Star 1 Star 2 Star 3 Star 4 Star As at May 2009 41 Page 41
    • 32. ENTERPRISE 50 AWARD PROGRAMME Prestigious award recognising the achievements of Top 50 enterprising home-grown companies Provide opportunities to benchmark against their peers 1996 - 2008 : • TOTAL NOMINATIONS - 1,388 • TOTAL ALUMNI - 424 • LISTED ON MALAYSIAN BOURSE - 41 42 Page 42
    • 33. NATIONAL WOMEN ENTREPRENEUR AWARD (NWEA)  Tribute to the commitment and tenacity displayed by women entrepreneurs  Premier award for women entrepreneurs at National level.  In collaboration with MECD, the Ministry of Women, Family and Community Development, FEM, NAWEM as well as Deloitte Consulting (M) Sdn Bhd.  Three (3) special Awards :  Emerging Entrepreneur Award;  Platinum Entrepreneur Award; and  Entrepreneur Extraordinaire Award. 43 Page 43
    • 34. SME – UNIVERSITY INTERNSHIP PROGRAMME Benefits to SMEs: University Education Benefits to students: - exposure to the - industry exposure and latest development practical applications of business of their studies as well practices and as enhance self applications of Local & confidence in doing technology; and business; and International - improved ways of Networking - inculcate the spirit of doing business. entrepreneurship. Local SMEs Students Linking SMEs to Universities to upgrade the capability of SMEs STATUS • UIAM & UMK - will start by July 2009 • UKM - will start by June 2009 • UMS - Discussion initiated 45 Page 45
    • 35. KEY INITIATIVES… MARKET TECHNOLOGY FUNDING BUSINESS TECHNOPRENEURSHIP MATCHING / MARKET ACCESS SME-UNIVERSITY I-SME SMIDEX INTERNSHIP I-SME SHOWCASE PROGRAMME VENTURE CAPITALIST TRADE MISSIONS INNOVATION DATABASE GRANTS I-SME RESEARCH- TECHNOLOGY TECHMART ER PROFILE ROADMAP INNOVATION FOR SMEs Page 46 46
    • 36. SME INNOVATION COMMITTEE SMIDEC Government Ministry & Agencies Research Banks / Institutions/ Financial Universities Institutions Industry Associations Page 47 47
    • 37. TECHNOLOGY DATABASE Page 48 48
    • 38. RESEARCHERS PROFILE DATABASE Page 49 49
    • 39. Technology Roadmaps Completed 3 Roadmaps Electrical & Electronics – Penang Skills Development Centre ICT – MIMOS, MOSTI Biotechnology Industry – Biotech Corp, MOSTI Work In Progress Automotive Sector - PROTON Rubber Products – Malaysian Rubber Board Wood & Wood Based Products – FRIM Medical Devices – SIRIM Pharmaceutical – Pharmaniaga, Page 50 50
    • 40. TECHNOLOGY ROADMAP – E&E Value Roadmap – The Penang Story •Business mgmt •Outsourcing •Service center •R&D •Software R&D Sub-Con •Global hub •Semicon process •Alternative sites Support Centers development •Basic software Quality and •Test systems development •Design companies •Contract mfg Automation •Supply chain management •Semicon mfg •Disk drives • Low value added •Consumer electronics exports •Investment in high •Automation tech machine • Textile/garment •TQC • Labor intensive shops •Drive components MNC • Electronic component assembly •Tool and die production Global •Machine integration • Test •Test auto-handlers Competition •Plastic molding •PCB assembly • Machine shop service •Custom service automation • General maintenance •Improvement projects •Mfg sub-con • Trade •General mfg •Basic industries machinery •Agriculture SMI 60s 70s 80s 90s 00s and beyond By Penang Skill Development Corporation (PSDC) Page 51 51
    • 41. TECHNOLOGY ROADMAP – R&D ON ICT In summary, this Roadmap will serve as a methodology and framework providing overall directions to all ICT stakeholders whilst complementing other national plans By MIMOS Page 52 52
    • 42. TECHNOLOGY ROADMAP – BIOTECHNOLOGY PHASE I PHASE II PHASE III (2005-2010) (2011-2015) (2016-2020) Capacity Science to Global Building Business Business  Establishment of advisory and  Consolidate Strengths and implementation Councils  Develop expertise in drug Capabilities in Technology  Establishment of Biotechnology discovery and development Development Corporation of Malaysia based on biodiversity and  Further Develop Expertise  Incentives natural resources and Strength in Drug  Capacity Building in R&D  New Products Development Discovery and Development  Industrial Technology  Technology Acquisition  Leading Edge Technology Development  Promote FDI participation Business  Develop Agricultural, Healthcare  Intensify Spin-off  Maintain Leadership in and Industrial Biotechnologies Companies Innovation and Technology  Develop Legal and IP Framework  Strengthen Local and Licensing  Business Development through Global Brands  Create greater value Accelerator Programmes  Develop Capability in through Global Malaysian  Bioinformatics Technology Licensing Companies  Skills Development  Job Creation  Re-branding of BioMalaysia  Regional Biotechnology Hubs as Global Hub  Develop BioNexus Malaysia as a brand  Initial job and industry creation By Biotechnology Corporation Page 53 53
    • 43. BRITISH TELECOM’S TECHNOLOGY ROADMAP 2006 - 2021 2051 2006 2008 2016 2013 2011 2021 Video tiles Al Entity Passes A Level ; Electronic Pets Outnumber Organic Pets ; First Bionic Olympics; Fixed Mobile Convergence; Smart Jelly Babies; Electronic Life Form Given Basic Rights; Remote Control Devices in Pets; Electronics Prescriptions; Tooth Regeneration; Listing of Individual’s DNA; Smart Yogurt; 24/7 Blood Chemistry Monitoring; Plastics Bones; Artificial Sensors in Cosmetic Surgery; Holographic TV; Instant Voice Mail; Hydrogen Fuel on UK Forecourts; Privatised Police Forces; Anti-noise technology in gardens; Smelly Television; Full Voice Interaction With PC. Smart Bacteria; Digital Bathroom Mirrors ; Biochemical storage of solar energy. Nanotechnology Toys Dream link Technology. Virtual Windows; Active Skin Make-Up; 1st Extreme Olympics; Hotel in Orbit; Holographic Animated Advertisement; Cybernetic Use in Sports; Smart Skin for Direct Human Repair ; Robots Guide Blind People; By British Telecom PLC 100GB Memory Sticks. Manufacture of Long Diamond Fibres. Page 54 54
    • 44. NATIONAL INNOVATION ACTION PLAN STRATEGIC THRUST 4 Shaping National Innovation Led Economy by Developing Market-Driven and Technology-Driven Innovation for Wealth Creation and Societal Well Being Provide fiscal incentives and encourage greater participation in high risk venture Market Human Technology Technology Capital Launch “Fast-Track Programme” for I-SME Innovatio n Led Economy SME & SME & Funding Techno- Techno- Establish Angel Network preneur preneur Institutio n 4. Innovation-Enhancement Points Source: MOSTI Page 55 55
    • 45. INNOVATION SME (I-SME) - CONCEPT Page 56 56
    • 46. PROPOSED I-SME ASSESSMENT (mechanism) ELIGIBLE FOR FAST TRACK PROGRAM ME Page 57
    • 47. FAST TRACK PROGRAMME (FTP) Page 58 58 58
    • 48. FAST TRACK PROGRAMME (FTP) The Fast Track programme would entail priority access to:  Funding for technology acquisition to shorten time-to-market  Fast-track approvals (e.g. IP registration)  Dedicated assistance in prototyping  GLC partnership for reference sites support  Networking platforms (e.g. special forums with global VCs) Other proposed elements for I-SMEs include:  Limited number of participants in the Programme, where SMEs have to compete for a space, to encourage competitive element  Limited time-frame for participation in the Programme to ensure constant review/ progress is achieved 59 Page 59 59
    • 49. INNOVATION DATABASE Establishment of the Technology Database in the SMIDEC portal in collaboration with MASTIC, MOSTI.  956 technologies are available for commercialisation by SMEs in all sectors; and Establishment of database of expert profiles through SMIDEC’s website, collaboration with MASTIC, MOSTI.  A total 18,413 researcher’s profile is currently available in the database. Page 60 60
    • 50. SME EXPERTS ADVISORY PANEL (SEAP) SME Visit , Diagnose & Recommend Improvements  Packaging & Labeling  Production capabilities  Compliance to Standards/ Certification  Lean Production System  Management & Financial 72 Industry Advisory Experts 61 Page 61
    • 51. NATIONAL MARK OF MALAYSIAN BRAND The Malaysian Brand mark is aims to: increase the create and build increase global a strong and regional awareness and presence importance of market towards branding for customer penetration. SMEs; recognition; Page 62
    • 52. THANK YOU Page 63