Ent300 Module06

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Ent300 Module06

  1. 1. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM BUSINESS REGULATIONS & SUPPORT SYSTEM Dr. Azizan Abdullah Azlin Shafinaz Mohamad Arshad Siti Zahrah Buyong Zarina Abdul Munir
  2. 2. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Introduction Business support system refers to the assistance and services given by the government or private agencies to help entrepreneurs to start a new business or to develop an existing one. There are a lot of business support system provided to the entrepreneur in term of monetary and non monetary facilities.
  3. 3. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Approval and Licensing
  4. 4. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Entrepreneur are required to have approval and licensing from relevant government agencies in setting up manufacturing businesses. Manufacturing Licence ►The Malaysian Government under The Industrial Coordination Act (ICA)1975 requires person (s) engaging in any manufacturing activity to obtain a licence. ►This regulation only apply to the manufacturing companies with shareholders’ fund of 2.5m
  5. 5. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM and above or engaging 75 or more full-time employees. ►Manufacturing activity is defined as the making, altering, blending, ornamenting, finishing or any other related activities. ► Applications of manufacturing licence should be made to Malaysian Industrial Development Authority (MIDA).
  6. 6. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM No-Objection Letter for the Location of Projects ► No-objection letter from the respective State Government is require for approval of the project location. ► This letter needs to be submitted to MIDA for the issuance of the manufacturing licence. Approval for Planning Permission ► Application for planning permission is require under Town and Country Planning Act, 1976 (Act 1972).
  7. 7. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM ► Planning permission need for a development and use of all lands and building. ► Planning permission should be made to the local authority such as City Council of Shah Alam (MBSA), Municipal Council of Kota Star (MPKS) etc. Approval for Building Plan ► The Street, Drainage and Building Act 1974 (Act 133) require construction of buildings can only be undertaken with the written approval for the local authority.
  8. 8. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM ► Every plan, drawing or calculation in which related to The building must be submitted by qualified person such as architect, draughtsman or engineer. Approval for Certificate of Fitness for Occupation ► All completed building need to be certified as being fit for occupation by the local authority. ► This requirement has been spell out under the Uniform Building by Laws 1984.
  9. 9. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Approval for Business Related Licences ► The licences related to factory premises, advertising signage, storage and canteen. ► This licences should be apply through the local authority. Approval for Environmental Control ► Environment Quality Act, 1974 requires the manufacturers to control industrial activities that may result in a new source of effluent or discharge.
  10. 10. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM ►The installation of incinerator, fuel burning equipment and chimney also need approval. ►The environmental control and approval are under the responsibility of Department of Environment. Approval for Safety and Health ►Factories and Machinery Act 1967 require manufacturers to obtain design approval of certificate machinery and certificate of fitness ►The application of approval should be send to Department of Occupational Safety and Health.
  11. 11. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Excise Licence and Sales Tax Licence ► Excise duties are require for a factory that manufactured goods which prescribe under Excise Act, 1976. ► Excise licence also need for products under this category and should be obtained from Royal Customs Malaysia. ► Customs Department will levied a sales tax on imported and locally manufactured goods. ► A sales tax licence should be apply under Sales Tax Act, 1972
  12. 12. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Infrastructure Facilities
  13. 13. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Industrial Estates ►Industrial estates has been developed by State Economic Development Corporations (SEDCs), Regional Development Authorities (RDAs), port authorities and municipalities. ► Currently there were over 200 industrial estates were developed by those agencies and the new ones are continuously planned to meet the demand of industrial land.
  14. 14. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Free Industrial Zones (FIZs) ►Established for manufacturing companies that produce or assemble products mainly for export purposes. ►The manufacturing companies in FIZs enjoy minimal customs formalities and duty free import of raw materials, component parts, machinery and equipment. ► They also have a minimal formalities for export their finished products.
  15. 15. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Licensed Manufacturing Warehouses (LMWs) ►The purpose of LMWs is to encourage the dispersal of industries and to enable companies to enjoy FIZ facilities in areas where it is neither practical nor desirable to establish FIZs. ► In order to get an approval for LMWs the companies should have at least 80% of their production meant for export and raw materials or components are mainly imported.
  16. 16. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Electricity and Water Supply ► Electricity for Peninsular Malaysia supply by Tenaga Nasional Berhad (TNB) while for Sabah and Sarawak are Sabah Electricity Sdn. Bhd. (SESB) and Sarawak Supply Corporation (SESCO) respectively. ► In term of water, it has been treated according to the World Health Organisation (WHO) standards for drinking and supply by state water department and water supply companies. ► Water costs are low and vary from state to state.
  17. 17. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Telecommunication Services ►Provided by Telekom Malaysia Berhad and other network service providers. ►There are six internet service providers which include TMNet, Jaring and MAXIS Net whose help the government to promote information based industry. ► Malaysia’s also entry into space age communication through the launching of MEAST-1 and 2 and Tiungsat-1 in 1996 and 2000 respectively.
  18. 18. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Sea Ports, Cargo Transportation, Highway and Railway Services ►Sea ports has modern facilities and equipment to facilitates full range of cargo handling. ►Cargo transportation provide comprehensive containerised cargo transportation services. ►The Malaysian Highway Authority provided latest design of expressways which link to all major townships and potential development area. ►Railway services operates by Keretapi Tanah Melayu (KTM) with the capacity to transport goods ranging from grain to machinery.
  19. 19. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Multimedia Super Corridor (MSC) ► MSC was established with the aims to revolutionise how Malaysians and others in the region conduct commerce in the digital age. ► MSC governed by groundbreaking Cyberlaws, policies and practices that enable operating companies to harness the full potential of Information Communications Technology and Multimedia. ► The ultimate aim of MSC is to attracts multimedia companies locally and internationally to become world class over time.
  20. 20. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Financial Assistance
  21. 21. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Financial Assistance for Entrepreneurs Financing is needed by entrepreneur for sustainability and development of business.
  22. 22. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Purposes of Financing 1. Strengthening skills of workforce 2. Entrepreneur development 3. Marketing & Promotion 4. Product Development & Quality accreditation 5. Technology development 6. Debt restructuring 7. General
  23. 23. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Types of Financing 1. Soft loan 2. Grants 3. Equity financing 4. Venture capital 5. Guarantee scheme 6. Tax incentives
  24. 24. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Who Provide the Financial Assistance? Two main provider for financial assistance are ministry and agencies. Ministry 3. Ministry of Entrepreneur and Co-operative Development (MECD) 4. Ministry of Science, Technology and Innovation (MOSTI) Agencies 26 agencies
  25. 25. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Ministry of Entrepreneur and Co- operative Development (MECD) Financing scheme under MECD: 1.ASEAN- Japan Development Fund 2. Equity Financing 3. Franchise Development 4. Skim Pembiayaan Pusat Negeri (SPPN)
  26. 26. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Ministry of Science, Technology and Innovation (MOSTI) Financing scheme under MOSTI: Enterprise Innovation Fund(EIF) Objective : To increase the participation of SMEs, micro businesses and individual/sole- proprietors in innovative activities through the development of new or improved products, processes or services with element of innovation for commercialisation
  27. 27. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Ministry of Science, Technology and Innovation (MOSTI) Enterprise Innovation Fund(EIF) Eligibility criteria Malaysian business enterprises or individual with project or product proposal that has elements of technological innovation for commercialisation
  28. 28. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Financial Assistance from Government Agencies There are twenty six (26) agencies that provide financial assistance for entrepreneur. Examples are : 3. Banks such as Bank Kerjasama Rakyat Malaysia Berhad, Bank Negara Malaysia, Bank Perusahaan Kecil & Sederhana Berhad, and Bank Pertanian Malaysia Berhad 4. Non-banks such as Perbadanan Nasional Berhad, Small and Medium Industries Development Corporation, Multimedia Development Corporation
  29. 29. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Bank Kerjasama Rakyat Malaysia Berhad Youth Business Scheme Objective To assist youth to venture into business on full time basis. Eligibility criteria Individual Malaysian citizen aged between 18-40 years old Must register online as an applicant through the Portal of ‘Majlis Penggalakan Ekonomi Belia (MPEB)’ - www.mpeb.gov.my Pass the screening test conducted by Ministry of Youth and Sport No adverse record with financial institutions Purpose of financing Expansion in productive capacity
  30. 30. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Bank Negara Malaysia New Entrepreneurs Fund 2 Objective To promote the growth of small and medium-sized Bumiputera enterprises by ensuring that they have access to financing at reasonable cost. Eligibility criteria Business enterprise based on the definition of SMEs [Link] www.smeinfo.com.my Maximum shareholders' funds not exceeding RM2 million; Shareholding by Public Listed Companies or Government-Link Companies (if any) should not exceed 20%; Purpose of financing Expansion in productive capacity
  31. 31. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM SME Bank Graduate Entrepreneurs Fund Objective To encourage graduates to participate and venture into businesses in the selected industry. Eligibility criteria Graduate holds majority equity in a company registered with the Companies Commission of Malaysia under the Companies Act 1965 Has a diploma/degree/doctorate qualification Must be below 40 years old and has successfully completed training programmers, placement and practical training under the Ministry of Entrepreneur and Co-operative Development (MECD) or its agencies Purpose of financing Working capital Financing fixed assets or both
  32. 32. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Agro Bank Malaysia Agriculture Entrepreneurs Scheme for Graduates Objective To encourage graduate to embark in the commercial agriculture sector as an alternative career development. Eligibility criteria Unemployed graduates with keen interest to develop a full time career in agriculture sector Purpose of financing Working capital and expansion in productive capacity e.g. purchase of fixed asset
  33. 33. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Perbadanan Nasional Berhad Youth Franchise Objective To encourage Bumiputera youth to venture into franchise business by providing start-up financing Eligibility criteria - A wholly-owned Bumiputera private limited company - Bumiputera age between 21 to 40 years old - Contribute at least 10% of the total project cost Application procedure Application to be submitted to PNS
  34. 34. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Perbadanan Usahawan Nasional Berhad (PUNB) Bumiputera Entrepreneurs Retail Project Fund (PROSPER) Objective To enhance and upgrade Bumiputera entrepreneurs' participation in the retail business. Eligibility criteria 1. Entrepreneur - Bumiputera above 18 years old - Possess the necessary entrepreneurial skills. 2. Business - Retail business wholly owned by Bumiputera. - Viable project costing not exceeding RM 1 million.
  35. 35. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Perbadanan Usahawan Nasional Berhad (PUNB) PROSPER Siswazah Entrepreneurial Scheme Objective To assist Bumiputera graduates to embark or venture into retail and distribution business industry through the systematic and structured PUNB's programmes Eligibility criteria 1. Young Bumiputera Graduate - Less than 30 years old with at least diploma qualification from institution recognised by the government.; - Able to source own capital amounting RM500 for each project 2. Businesses - Wholly-owned and managed by Bumiputera ; - New business or business at the stage of expansion
  36. 36. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Small and Medium Industries Development Corporation Matching Grant for Business Start-ups Objective - To provide assistance in the form of matching grant to start up a business in the following sectors: - Manufacturing and Manufacturing related services; and - Services (excluding insurance and financial services) Eligibility criteria - Business enterprise based on the definition of SMEs. - At least 60% of equity are held by Malaysian and - Possess valid premise license
  37. 37. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Multimedia Development Corporation MSC Malaysia Research and Development Grant Scheme (MGS) Objective To provide reimbursable R&D grant to assist Multimedia Super Corridor (MSC) Malaysia-Status Companies to develop innovative multimedia technologies and applications. Eligibility criteria Possess a valid MSC Malaysia-status certification Malaysian shareholding of at least 51% Past or current recipients of any Government R&D grant are NOT eligible under the scheme Purpose of financing To provide financing for research and development projects for the development of new products and services across the multimedia value chain and Flagship Applications
  38. 38. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Employment Policies & Legislations
  39. 39. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM EMPLOYMENT POLICIES & LEGISLATION 1. EMPLOYMENT ACT 1955 2. EMPLOYER PROVIDENT FUND 3. SOCIAL SECURITY ORGANIZATION 4. OCCUPATIONAL SAFETY AND HEALTH
  40. 40. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM 1. EMPLOYMENT ACT 1955 • Stipulates the minimum conditions of employment such as Besides, the Act is to provide minimum standards on working hours and overtime, weekly rest day, public holidays, annual and sick leaves, maternity benefits, termination and lay off benefits etc • Applies to all employees in Peninsular Malaysia and the Federal Territory of Labuan whose monthly wages do not exceed RM1,500 and all manual workers irrespective of their wages. • Employees who earn between RM1,500 to RM5,000 a month can still seek redress from the Labor Department with regard to wages and any other payments in cash as stipulated in their contract of service.
  41. 41. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM 2. EMPLOYER PROVIDENT FUND • A social security institution formed according to the Laws of Malaysia, Employees Provident Fund Act 1991 (Act 452) which provides retirement benefits for members through management of their savings in an efficient and reliable manner. • All employers must register their employees with EPF immediately upon employment. • Provides a convenient framework for employers to meet their statutory and moral obligations to their employees.
  42. 42. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM 2. EMPLOYER PROVIDENT FUND • The Act stipulates a compulsory contribution for employees. A contribution constitutes the amount of money credited to members' individual accounts in the EPF. The amount is calculated based on the monthly wages of an employee. The current rate of contribution is 23% of the employee's wages of which 11% is from the employee's monthly wage while 12% is contributed by the employer. • Under this Act, all employers and employees except foreign workers, expatriates and those who are listed under the First Schedule must contribute to the Employees provident Fund (EPF). However, they can choose to contribute at the rate of RM5.00 (employer’s share) per employee per month and 11% of monthly wages by the employee.
  43. 43. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM 3. SOCIAL SECURITY ORGANIZATION • Administers the Employment Injury Insurance Scheme and Invalidity Pension Scheme provided under the Employees’ Social Security Act 1969. • The scheme is compulsory and employer must cover all employees under SOCSO even if they are covered under other insurance policies. • A monthly contribution must be made for each eligible employee according to rates specified under the Act (about 2.5% of basic employee’s salary). • Covers only Malaysian workers and permanent residents. All establishments, including factories, employing workers earning wages not exceeding RM2,000 a month
  44. 44. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM 4. OCCUPATIONAL SAFETY AND HEALTH • The Department of Occupational Safety and Health (DOSH) is a department under the Ministry of Human Resources. The Department of Occupational Safety and Health (DOSH) is responsible for enforcing compliance of the law with OSHA 1994. DOSH also enforces compliance with the Factories and Machinery Act 1967. • The OSHA 1994 provides legislative framework to promote, stimulate and encourage high standards of safety and health at work. The aim is to promote safety and health awareness, establish effective safety organization and performance through self-regulation schemes designed to suit the particular industry or organization. This Act also defines the responsibilities of employers, manufacturer, employees, self-employed workers, designers, importers and vendors.
  45. 45. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM 4. OCCUPATIONAL SAFETY AND HEALTH • As for Factories and Machinery Act 1967, it provide for the control of factories on matters relating to the safety, health and welfare of persons, and the registration and inspection of machinery. Some high risk machinery must be certified and inspected by DOSH. All factories and general machinery must be registered with DOSH for the purpose of registration before they can be installed and operated in Malaysia.
  46. 46. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Manpower Development & Training Facilities
  47. 47. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM MANPOWER DEVELOPMENT & TRAINING FACILITIES • NATIONAL VACATIONAL TRAINING COUNCIL • MINISTRY OF HUMAN RESOURCE • HUMAN RESOURCE DEVELOPMENT FUND • MALAYSIA PRODUCTIVITY FUND • MALAYSIAN ENTREPRENEURSHIP DEVELOPMENT CENTRE • PERBADANAN USAHAWAN NASIONAL BERHAD • MAJLIS AMANAH RAKYAT
  48. 48. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM 1. NATIONAL VACATIONAL TRAINING COUNCIL • The Department of Skills Development, formerly known as The National Vocational Training Council, is one of the agencies under the Human Resource Ministry, responsible for the co-ordination and control of skills training as well as career development in skills training. in line with the implementation of the National Skills Development Act, 652 (2006) on September 1, 2006.
  49. 49. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM 1. NATIONAL VACATIONAL TRAINING COUNCIL • The objective is to generate and coordinate the development of skilled workforce by:  Developing Competency Standard, of a developed country level, for skilled workforce,  Recognising the competency and skills of workforce and industry experts, and  Coordinating skills training systems and Malaysia Skills Certificate systems.  Function of this council is to :  Assess training requirements,  Develop, approve and revise the National Skills Standard,  Implement the national training certification programmes,  Promote skills training systems,  Assist and enhance skills proficiency of individuals, and  Guide learning/research programmes related to skills training.
  50. 50. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM 2. MINISTRY OF HUMAN RESOUCE • Currently runs 14 industrial training institutes (ITIs) which offer industrial skills training programme at basic, intermediate and advanced levels for pre- employment or job entry level. These include apprenticeships in mechanical, electrical, building and printing trades as well as programme to upgrade skills and to train instructors. • The Ministry also operates the Centre for Instructors and Advanced Skills Training (CIAST), Industrial Training Institute Japan-Malaysia Technical Institute (JMTI) and Advanced Technology Centers (ADTEC).
  51. 51. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM 3. HUMAN RESOURCE DEVELOPMENT FUND • Aimed at encouraging direct private sector participation in skills development was launched in 1993 with a grant form government. • Functions of HRDF are :  to assess and determine the types and extent of employee training and retraining in keeping with the human resources need of industries  to promote and stimulate manpower training  to determine the terms and conditions under which any financial assistance or other benefits are to be given
  52. 52. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Contribution Guidelines for employers: (i) Companies that employ 50 or more Malaysian 1% of employees’ workers monthly wages (ii) Companies that employ less than 50 to a 1% of employees’ minimum of 10 employees, with a paid up monthly wages capital of RM2.5 million or more (iii) Companies that employ less than 50 to a Option of registering minimum of 10 of employees, with a paid-up with the HRDF and capital of less than RM 2.5 million paying a levy of 0.5% of the employees’ monthly (Note : For this category, the Government contributes RM2.00 for every RM1.00 spent.) wages
  53. 53. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM 4. MALAYSIA PRODUCTIVITY CORPORATION • Formally known as the National Productivity Corporation was established in 1962 as a joint project between the United Nations Special Fund and the Federal Government, with the International Labor Organization acting as its executing agency. • Function of PMC are :  To generate local expertise in the field of productivity, quality, management and entrepreneurship;  To enhance the development of human resource both at the supervisory and management levels in the country;  To assess and certify supervisory and management training programmes, entrepreneurship programmes and productivity and quality management programmes conducted by the private sector for the public;  To conduct training or other programmes relating to productivity, quality, management and entrepreneurship;
  54. 54. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM 5. Malaysian Entrepreneurship Development Centre (MEDEC) • Established within MARA University of Technology (UiTM) in 1975. • The mission was to facilitate the growth of Bumiputera entrepreneurs in Malaysia. • Specifically, it was set up for the purpose of planning and implementing entrepreneurship development programs such as training, education, research and consultancy. • Activitie and programmes offered are :  Entrepreneur Development Program  Entrepreneur Development Program for Civil Service  Entrepreneur development program for Corporate and Government Agencies
  55. 55. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM 6. Perbadanan Usahawan Nasional Berhad • Focus is on developing Bumiputera entrepreneurs in strategic and high potential businesses and also to provide opportunities to Bumiputera entrepreneurs to achieve business success; through the provision of financial and corporate support. • Business operations are focused on providing integrated entrepreneur development packages to assist Bumiputera entrepreneurs in Retail and Small and Medium sized Enterprise (SME) sectors. These development packages are designed to help Bumiputera entrepreneurs develop business acumen, maintain a profitable venture, and shape their enterprise; par excellence.
  56. 56. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM 7. Majis Amanah Rakyat • Incorporated as a statutory body on March 1, 1966 under an Act Of Parliament, No. 20, 1966. • Entrusted with the responsibility to promote, stimulate, facilitate and undertake economic and social development of the people particularly in the rural areas thereof. • It is also to encourage, guide, train and assist Bumiputera to enable them to participate actively and progressively in small and medium scale commercial and industrial enterprises towards creating a strong and viable Bumiputera Commercial and Industrial Community (MPPB). • In order to create, increase and improve the level of Bumiputera entrepreneurship and business, MARA have provided activities such as in entrepreneurship, manufacturing incubator, consultancy service, marketing promotion and technopreneur programme.
  57. 57. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Other Business Support System
  58. 58. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Other Support Facilities in Malaysia Entrepreneur Technical Marketing Advisory Assistance Services Assistance
  59. 59. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Technical Assistance Malaysian Agricultural Research and Development Institute (MARDI) The main objective of MARDI is to develop indigenous science and technology capabilities in support of the development and modernization of the national food and agriculture sector.
  60. 60. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Malaysian Palm Oil Board (MPOB) The Malaysian Palm Oil Board (MPOB) is the premier government agency that is responsible for promoting, developing and advancing the country’s palm oil industry. It is also responsible for providing scientific and technological leadership to support the development of the palm oil industry.
  61. 61. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Fisheries Research Institute (FRI) The Fisheries Research Institute (FRI) conducts studies in various fields of aquatic organism such as fish, mollusk and shrimp.
  62. 62. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM MIMOS Berhad MIMOS Berhad is a technology R&D organization that functions as an advisor to the Malaysian government on technologies, policies and strategies relating technology development.
  63. 63. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM SIRIM Berhad SIRIM Berhad, a government-owned company, is a leader in industrial research and development. Its role is to spearhead industrial research and development and to pioneer standardization activities and the provision of technical and consultancy services aimed at enhancing the competitiveness of Malaysian industries.
  64. 64. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Marketing Assistance The purpose of marketing assistance is to help entrepreneurs distribute and market their products locally and internationally. There are a number of agencies involved such as MITI, MATRADE, FAMA and GUTHRIE.
  65. 65. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM Advisory Services Advisory services are very important for entrepreneurs in managing their business. There are many agencies providing these services with certain charges depending on the area and scope of the services. However, rebate or tax reduction is given to certain services acquired under the training scheme recognized by the Ministry of Human Resources.
  66. 66. ENT/ETR300 – FUNDAMENTALS OF ENTREPRENEURSHIP BUSINESS REGULATIONS & SUPPORT SYSTEM END OF MODULE 6

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