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Smidec Presentation Presentation Transcript

  • 1. ‘ SMI : Face to Face Funding Solutions’ BY ISMAIL HASHIM DIRECTOR SMIDEC NORTHERN REGION OFFICE SMIDEC
  • 2.
    • To formulate policy and implement programmes for the development of SMEs in Malaysia;
    • To provide technical and advisory support services in collaboration with other related agencies involved in SMEs development;
    • To forge industrial linkages between SMEs and large companies/ Multinational Corporations (MNCs) ;
    • To implement, coordinate and monitor financial assistance schemes provided to SMEs ;
    • To collaborate with other local and international SME related agencies to develop SMEs .
    FUNCTIONS
  • 3. VISION SMEs AS A DYNAMIC AND INTEGRAL PART OF THE MALAYSIAN INDUSTRIAL COMMUNITY LINKED TO THE INTERNATIONAL SUPPLY CHAIN
  • 4. MISSION TO ENHANCE THE COMPETITIVENESS, EFFICIENCY AND PRODUCTIVITY OF SMEs
  • 5. General administration and corporate functions of the Corporation and matters pertaining to relation with the government Formulation of policies and guidelines for the financial assistance programmes. Responsible for the formulation, implementation and management of promotional policies and strategies on SME assistance programmes Developing and nurturing SMEs to become reliable and competitive manufacturers and suppliers to leading industries. Management of the SME Information & Advisory Centre so as to disseminate updated and real-time information to SMEs Formulation of policies, programmes and incentives for the development of Malaysian SMEs SMIDEC: ORGANISATIONAL STRUCTURE
  • 6. DEFINITION OF SMEs
    • “ Companies in the Manufacturing and Manufacturing related services sectors with annual sales turnover not exceeding RM25 million and full time employees not exceeding 150”
  • 7. OUR CLIENT
    • SMEs in the manufacturing sector;
    • SMEs in the manufacturing related services sector; and
    • Recently, the scope has been expanded to include SMEs in the Services sector
  • 8.
      • NEW SECTORS UNDER PURVIEW
    LOGISTIC PROFESIONAL MANAGEMENT (ACCOUNTANT, LAWYER ETC.) DISTRIBUTIVE TRADE (RETAIL / WHOLESALE) Recently, the scope has been expanded to include SMEs in the Services sector
  • 9. SMEs by size 24% 76% Medium Small
      • 44,185 manufacturing companies registered with Companies Commission of Malaysia.
      • 20,455 are active establishments.
      • 18,271 or 89.8 are SMEs.
    PROFILE OF SMEs
  • 10. MALAYSIA : SME’s CONTRIBUTION IN THE MANUFACTURING SECTOR 28.5 29.1 Output 30.7 26.2 Value added 26.5 32.5 Employment 2002 2003
  • 11. General Manufacturing Wood and Wood products Food, Beverages and Tobacco Paper and Paper Products Machinery and Equipments Textile, Apparel and Leathers Rubber and Plastic Electrical and Electronics Chemical, Petroleum Coal Metal Non Metallic Mineral Products MARKET SHARE: EXPORT - 20% DOMESTIC - 80% Transport Equipment General manufacturing (i.e. jewelry, sporting goods DISTRIBUTION BY SECTORS
  • 12. BASIC PROBLEMS FACED BY SMEs
    • Access to market
    • Access to finance
    • Low level of technology
    • Lack of labour and skilled manpower
    • Operating on non- designated zones
  • 13. CHALLENGES CONFRONTING SMES
    • Increasing global competition resulting from trade liberalisation measures; AFTA, WTO, Bilateral FTAs
    • Emergence of new technologies and the lack of capacity to absorb new technologies in the manufacturing and management processes
    • Development in ICT, internet and e-commerce and the impact on global production system
    • Increase in factor costs and the impact of the entrant of new economies with surplus labour into the market system
  • 14. SME DEVELOPMENT PROGRAMMES
  • 15. BROAD BASED PROGRAMMES
    • Market development
    • Financing
    • Technology and ICT adoption
    • Innovation and R&D
    • Skills development
    • Infrastructure development
  • 16. MARKET DEVELOPMENT
    • INDUSTRIAL LINKAGE PROGRAMME (ILP)
      • business matching
      • link SME companies to large companies as suppliers of part and components
    • MARKET DEVELOPMENT SCHEME (through MATRADE)
      • identify potential market
      • undertake export market promotion, development of brand names.
      • participate in international trade fairs and missions
    • SMIDEC ANNUAL SHOWCASE (SMIDEX 2004)
    • ENTERPRISE 50 PROGRAMME
  • 17. FINANCING SOFT LOAN SOFT LOAN PACKAGE FOR SMEs SOFT LOAN SCHEME FOR FACTORY RELOCATION SOFT LOAN FOR ICT ADOPTION GRANT INDUSTRIAL TECHNICAL ASSISTANCE FUND (ITAF)
  • 18.
      • Technology Acquisition Fund - MTDC
      • Soft Loan for ICT Application
      • Grant for RossettaNet Standard Implementation
    ADOPTION OF TECHNOLOGY AND UTILISATION OF ICT
  • 19. INNOVATION AND R&D GRANT FOR PRODUCT AND PROCESS IMPROVEMENT (ITAF 2) COMMERCIALISATION RESEARCH AND DEVELOPMENT FUND (CRDF) – MTDC INDUSTRIAL GRANT SCHEME (IGS) - MOSTE
  • 20. SKILLS DEVELOPMENT
    • Upgrading of skills for employees of SMEs through 19 Skills Development Centres:
        • - PUSPATRI - TATI - NSSDC
        • - GMI - MFI - MISDC
        • - KISMEC - PSDC (Penang) - SIRIM
        • - PESDC - PSDC (Pahang) - NIOSH
        • - SHRDC - PPKS - TPM
        • - SSTC - MINT - IKRAM
        • - NPC
        • 50% Grant on training fees – SMIDEC
        • Focus on Hardskill
  • 21. INFRASTRUCTURE DEVELOPMENT
      • Development of industrial sites for SMEs (integrated concept)
      • Development of common facilities for waste disposal, warehousing, employees’ accommodation, etc.
      • Infrastructure costs through grant provided by SMIDEC
      • Factory building affordable to SMEs
  • 22. Global Supplier Programme (GSP)
    • The GSP involves training in critical skills and also linkage to MNCs and large companies. The training initiative is implemented in collaboration with local Skills Development Centres
    • Through the linkage initiative of the GSP, SMEs are developed to be competitive suppliers of parts and components, not only to MNCs in Malaysia, but also their worldwide operations through the mentoring activities.
  • 23. SME EXPERT ADVISORY PANEL (SEAP)
    • SEAP is a programme initiated by Small and Medium Industries Development Corporation (SMIDEC) through the emplacement of retired experts at the factory sites of SMEs to solve SME’s specific problems.
    • The programme is to assist SMEs to upgrade their technological capability, to achieve efficiency and to increase productivity.
    Form of Assistance A maximum of RM18,000.00 or 60 man days per project.
  • 24. GRANT SOFT LOAN
    • SOFT LOAN SCHEME FOR SMEs
    • SOFT LOAN SCHEME FOR FACTORY RELOCATION
    • SOFT LOAN FOR ICT ADOPTION
    • INDUSTRIAL TECHNICAL ASSISTANCE FUND (ITAF)
    • FACTORY AUDITING
    • ROSETTANET
    PROGRAMMES SUMMARY FINANCIAL ASSISTANCE PROGRAMMES FOR SMEs
  • 25.
    • (a) ITAF 1
      • BUSINESS PLANNING & DEVELOPMENT SCHEME
    • (b) ITAF 2
      • PRODUCT AND PROCESS IMPROVEMENT SCHEME
    • (d) ITAF 4
      • MARKET DEVELOPMENT SCHEME
    S C H E M E
    • (c) ITAF 3
      • PRODUCTIVITY AND QUALITY IMPROVEMENT AND
      • CERTIFICATION SCHEME
    I T A F MATCHING GRANT RM 60,000 RM 40,000 RM250,000 RM500,000
  • 26. Industrial Technical Assistance Fund (ITAF) 1 Grant for Business Planning and Development
    • Provides Grant to Assist SMEs in:
    • Market feasibility studies
    • Technology feasibility studies
    • Business planning studies
    • Domestic and export market strategy studies
    • Form of Assistance:
    • Matching grant not exceeding RM40,000 per company or 50% of approved project cost, whichever is lower.
  • 27. Industrial Technical Assistance Fund (ITAF) 2 Grant for Product and Process Improvement
    • Provides Grant to Assist SMEs in:
    • Product;
    • Product design;
    • Process
    • Form of Assistance:
    • Matching grant not exceeding RM500,000 per company or 50% of approved project cost, whichever is lower.
  • 28. Industrial Technical Assistance Fund (ITAF) 3 Grant for Productivity and Quality Improvement and Certification
    • Provides Grant to Assist SMEs in:
    • Productivity and Quality Improvement
    • Productivity and Quality Improvement based on customer's
    • requirement
    • Development of Productivity and Quality Improvement
    • Productivity and Quality System Certification
    • Quality Development Systems (5S), Quality Control Circles(QCC), , Total Preventive Maintenance TPM)
    • Occupational and safety measures
    • Quality Series : ISO 14000, ISO 18000
    • HACCP , HALAL and other product quality certifications
    Maximum grant allocated per company is RM250,000 (matching grant of 50% of approved project cost)
  • 29. Factory Auditing
    • Objectives of the Scheme are:
    • To undertake a diagnostic audit on SMEs that have potential to be linked to the
    • Multi National Corporations (MNC)/large scale companies;
    • To assist SMEs in identifiying thier strengths and weaknesses in order to help them undertake remedial measures to enhance thier capabilities
    • Form of Assistance:
    • Matching grant not exceeding RM10,000 per company or 50% of approved project cost, whichever is lower.
  • 30.
    • The Scheme provides assistance to local Electrical and Electronic (E&E) companies:
    • To implement RosettaNet , an internet based common messaging standard for global supply chain management;
    • Enables companies in the supply chain to communicate and conduct business electronically through common codes sourcing of parts and components;
    • Acquisition of RosettaNet Middleware which include software, hardware and licensing fee to embrace global supply chain management system.
    • Matching grant for large companies – Max.RM 100,000
    • SMEs – ASP Model – 70% Grant, Max. RM 30,000
    [ICT APPLICATION] – GRANT FOR ROSETTANET STANDARD IMPLEMENTATION
  • 31. SOFT LOAN SCHEME FOR SMEs
    • Offers assistance to SMEs in modernising and automating their manufacturing operations
      • Working Capital Financing
      • Fixed Asset Financing
      • Project Financing
          • Pre-operational expenses
          • Fixed asset financing
          • Working capital
    • Both existing as well as start-up companies are eligible for:
      • Project Financing
  • 32. FLEXIBLE AND ATTRACTIVE TERMS OF SLSME Loan Size Project Financing - maximum of RM 5 mil. Fixed Asset Financing-maximum of RM 2.5 mil. Working Capital Financing - Maximum of RM 1 mil. Minimum Loan - RM50,000.00 Refinancing is not allowed Interest Rate 4.0% p.a Repayment Period 5-15 years Grace period – 2 years
  • 33. SOFT LOAN SCHEME FOR ICT ADOPTION
    • ENGINEERING DESIGN CAPABILITIES
      • To purchase of design software (CAD, CAM, CAE) or subscription fee/license fee for on-line engineering design services;
      • Purchase of computer hardware and related equipment;
      • Training cost.
    • ENTERPRISE RESOURCE PLANNING (ERP) SORFTWARE
      • Purchase of ERP software or first year subscription to on-line ERP system, or other similar software (CIM, ERM, MRP, SCM, CRM);
      • Implementation cost including system study, customisation and training;
      • Purchase of server and related networking equipment.
  • 34. FLEXIBLE AND ATTRACTIVE TERMS OF SOFT LOAN FOR ICT Loan Size Max. Loan - RM250,000 Min. Loan – RM20,000.00 Interest Rate 3.0% p.a Repayment Period 5 years
  • 35. SOFT LOAN SCHEME FOR FACTORY RELOCATION
    • Assistance to SMEs to relocate their factories to approved industrial sites
    • The loan is provided to fund:
    • - Purchase of ready-made factories;
    • - Purchase of factory lot and construction of factories
    • including related infrastructure; and
    • - Costs to purchase related machinery and equipment due to relocation
    • - Max. loan RM 1 mil.
    • - Terms – similar to SLSME
  • 36.
    • To integrate more companies / enterprises owned and run by women into the mainstream of manufacturing through inter and intra industry linkage
    • To enhance the global competitiveness of companies / enterprises owned and run by women
    • To upgrade the technological capabilities and technical skills and expertise of companies / enterprises owned and run by women
    To allow greater access to financing for women entrepreneurs The sector coverage of this Scheme has been expanded to include other activities Specifically packaged to be more flexible and accessible to women entrepreneurs OBJECTIVES SPECIAL ASSISTANCE SCHEME FOR WOMEN ENTREPRENEURS
  • 37. SECTOR COVERAGE
    • MANUFACTURING ACTIVITIES
    • As per in the Promoted Products / Activities
    • list of PIA, 1986
    • RELATED SERVICES:
      • i) IT and IT Related Services
      • ii) Education Services
      • iii) Software Development
      • iv) Designing And Packaging
      • v) Research And Development (R&D)
      • vi) Marketing
      • vii) Tourism
      • viii) Other Business Services
  • 38. OUTREACH PROGRAMME
    • Undertakes various promotional programmes to reach out to the SMEs through seminars, workshop, business clinics and exhibitions.
    • SME Information & Advisory Centre
    • Aims to disseminate up-to-date and real-time information to SMEs. The centre comprises:
    • Virtual SME Info Centre
    • SMIDEC Regional Offices
    • Tol free line : 1-800-18-1801
  • 39.
      • SMEs are critical component of industrial economic development
      • Linkages with large companies providing critical supporting services and assisting in cluster development
      • High contribution in increasing local content and domestic participation in the manufacturing sector
    CONCLUSION
  • 40.
      • SMEs need to be nurtured and develop to increase their contribution to output, value added and employment. Current contribution is still small compared to develop countries.
      • Need to enhance and speed up intergration of SMEs with the mainstream domestic manufacturing sector and the global supply chain.
  • 41. SMIDEC NORTHERN REGION OFFICE LORONG PERUSAHAAN BUKIT MINYAK 2 TAMAN PERUSAHAAN BUKIT MINYAK 14100 SEBERANG JAYA PULAU PINANG Tel: 04-5024207 Fax: 04-5024205 E-mail: smidecpp@streamyx.com http : //www.smidec.gov.my Toll Free Line : 1-800-18-1801 THANK YOU SMIDEC