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
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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
6. DEFINITION OF SMEs
Annual sales
turnover
Manufacturing,
Manufacturing Related < RM25 million
Services and Agro -based OR
Industry Full time employees
<150
Annual sales
turnover
Services, Primary
Agriculture, Information < RM5 million
and Communication OR
Technology (ICT)
Full time employees
< 50
6
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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
Agro-based full time OR OR
Industries employees < 5 5 > full time 51 > full time
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
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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
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9. DISTRIBUTION OF SMEs
BY SECTOR
Agriculture
Manufacturing (6.2 %)
(7.2 %)
Services
(86.6 %)
Source: Census of Establishments & Enterprises 2005 – Profile of SMEs
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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
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11. SMIDEC
SME SUPPORT Financial
Development FOR Assistance
Programmes SMEs Programmes
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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
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16. MATCHING GRANT
FOR BUSINESS START-UPS
Provides grant to assist SMEs and Enterprises ( less than 12 months
of operation).
Eligible expenses :
•Preparation of Business Plan
•Preparation of Marketing Plan
•Market Feasibility Studies
•Rental of business premises and related equipment up to 24 months
•Development of prototype (for Construction and related activities
only)
•One year broadband subscription fee
•Purchase of machinery or office equipment
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17. MATCHING GRANT FOR PRODUCT
AND PROCESS IMPROVEMENT
Provides grant to SMEs for Product Development and Product &
Process Improvement.
Eligible expenses :
•Technology Feasibility Studies
•Fees for technology transfer
•Development of prototypes and system design
•Product testing & registration
•Marking and labeling
•Machine & equipment for testing and calibration
•Development & designing of equipment and machinery
•Purchase of machinery and equipment
•Initial patent registration/patent search/IP Protection
•Specific Project Mission
•Cleaner Production and Waste Treatment Project
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18. MATCHING GRANT FOR CERTIFICATION
AND QUALITY MANAGEMENT SYSTEM
Provides grant to assist SMEs in obtaining quality and product
certification such as:
•ISO 9001:2000, ISO 13485 (Medical Devices), ISO 14000
(Environment), ISO 22000 (Food Safety & Hygiene),TS 16949
(Automotive)
•Product certification
•Hazard Analysis Critical and Control Point (HACCP)
•Halal certification & MS1500:2004
•Quality Improvement Practices e.g. 5S, Six Sigma and
Productivity Audit
•Good Manufacturing Practice (GMP)
•Occupational, Safety and Health Management System (OSHA)
•Restriction of Hazardous Substance (RoHS)
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19. MATCHING GRANT FOR CERTIFICATION
AND QUALITY MANAGEMENT SYSTEM …cont’d
• Good Agriculture Practice (GAP)
• Good Hygiene Practice (GHP)
• Regulatory Impact Assessment (RIA)
• British Retailers’ Consortium (BRC)
• Globally Harmonised System (GHS)
• Safety Data Sheet (SDS)
Eligible Expenses :
• Cost of information, training, testing, calibration and
acquiring equipment for product testing
• Renovation expenditure for compliance to certification
requirement
• Other related costs required for certification and quality
management system
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20. MATCHING GRANT FOR DEVELOPMENT AND
PROMOTION OF HALAL PRODUCTS
Provides assistance to local companies in :
• Product development & formulation
• Sample testing
• Acquisition of machinery and equipment related to the
approved project
• Renovation expenditure for compliance to certification
requirements
• Promotional activities
• Other related costs for compliance to requirements of Halal
certification
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21. MATCHING GRANT FOR ENHANCING
PRODUCT PACKAGING
Designing and improving product packaging and labeling
through appropriate packaging technology
Eligible Expenses :
• Related costs and services for designing, packaging, marking
and labeling
• Trade mark and patent registration
• Purchase of related machinery and equipment
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22. MATCHING GRANT FOR R0SETTANET
RosettaNet Direct Model RosettaNet ASP Model
• Assistance to local companies to • Assistance to local companies to
implement the complete implement the RosettaNet
RosettaNet Standard Standard through subscription to
hosted services offered by
• Enable companies to implement
Application Service Providers
and host their own RosettaNet
(ASPs).
Gateway infrastructure
• Form of assistance:
• 50% grant on approved project
cost - For SMEs - 70% grant on
approved project cost
• Maximum grant per company is
- For large companies - 50%
RM100,000
grant on approved project
cost
• Maximum grant per company is
RM30,000
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23. MATCHING GRANT FOR
MARKET DEVELOPMENT
Provides grant to assist SMEs in undertaking activities for the
development of export markets. The activities include :
•Participation in :
Trade and Investment Missions
Marketing Mission
In-Store Promotion Overseas
Industry and Professional Related International Conferences
Overseas
Local and international trade fairs
Meetings related to negotiations on Mutual Recognition
Agreements (MRA), Free Trade Agreement (FTA), ASEAN,
World Trade Organization (WTO) and other market access
negotiations by representatives of Trade and Industry and
Professional Services Associations
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24. MATCHING GRANT FOR
MARKET DEVELOPMENT … cont’d
• Preparation of promotional items
• Setting up of sales promotion office overseas
• For women-owned enterprises :
Participation in Malaysia Export Exhibition Centre (MEEC)
at MATRADE
Participation in export training seminars and workshops
held locally
Implementing Agency
MATRADE
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26. • Interest Rate: 2%
• Max Loan: RM3 million
• Payment Period: 15 years
• Interest Rate: 2% • Interest Rate: 2%
• Max Loan: RM3 million • Max Loan: RM500,000
• Payment Period: 15 years • Payment Period: 5 ½ years
Page 26 26
27. GRANT-LOAN FACILITY
A joint facility between SMIDEC, MIDF and SME Bank.
Provides assistance in :
•Specific cost for business start-ups
•Product and process improvement
•Certification and quality management systems
•Enhancing product packaging
•Development and promotion of Halal products
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28. SMIDEC
SME DEVELOPMENT PROGRAMMES
2.INDUSTRIAL LINKAGE PROGRAMME
2. SKILLS UPGRADING PROGRAMME
3. OUTREACH PROGRAMMES
4. SME COMPETITIVE RATING FOR ENHANCEMENT
(SCORE)
5. ENTERPRISE 50 AWARD PROGRAMME
28
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29. 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
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30. 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
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31. SKILLS UPGRADING PROGRAMME
Enhancing Marketing Skills Upgrading
Skills 43 S KILLS DEVELOP MENT
CENTRES & Programme
P ROFES S IONAL TRAINING
P ROVIDERS AP P OINTED:
Status (as at May 2009) :
33,789 employees trained 80% training grant on the course fee
(RM32.24 million)
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32. 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
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33. 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
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34. 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
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35. • 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
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36. •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
Manageme Business
nt Performanc
•Staff Recruitment
•Staff Retention
Capability e • Paid Up Capital
•Training Talent Financial •Current Assets & Liabilities
•Knowledge Developme Capability
•Profitability
Management Retention
nt
Marketin Operation
g Managemen
Capabilit Innovation t
•Allocation for Marketing •Qualification and Staffing
•Standard Operating Procedure
Activities y (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
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37. 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 development, clear career
semi-aggressive employee development path
retention program
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38. • 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
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39. •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
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40. • 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 Performance • Paid Up Capital
• Continuous Improvement • Current Assets & Liabilities
Activities Quality Financial • Profitability
•Awards
System Capability
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
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41. Total SC RE -
O d 1,653 SM s
E
As at May 2009
41
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42. 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
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43. 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
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45. SME – UNIVERSITY INTERNSHIP PROGRAMME
Benefits to SMEs: University Education
Benefits to students:
- exposure to the - industry exposure and
latest development practical applications of
of business their studies as well as
practices and enhance self confidence
applications of Local & in doing business; and
technology; and International
Networking - inculcate the spirit of
- improved ways of entrepreneurship.
doing business.
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
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50. 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
51. TECHNOLOGY ROADMAP – E&E
Value Roadmap – The Penang Story
•Business mgmt
•Outsourcing
•Service center
•R&D
•Software
•Global hub
R&D Sub-Con •Alternative sites
• Semicon process
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
• Electronic component • Drive components
MNC assembly
• Tool and die
• Machine integration production Global
• Test auto-handlers
• Test • Plastic molding
• PCB assembly
Competition
• Machine shop service • Custom service
• Improvement projects automation
• General maintenance • 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
52. 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
53. 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
Industrial Technology Technology Acquisition Development
Development Promote FDI participation Leading Edge Technology
Develop Agricultural, Healthcare Intensify Spin-off Business
and Industrial Biotechnologies Companies Maintain Leadership in
Develop Legal and IP Framework Strengthen Local and Innovation and Technology
Business Development through Global Brands Licensing
Accelerator Programmes Develop Capability in Create greater value
Bioinformatics Technology Licensing through Global Malaysian
Skills Development Job Creation Companies
Regional Biotechnology Hubs Re-branding of BioMalaysia
Develop BioNexus Malaysia as a as Global Hub
brand
Initial job and industry creation
By Biotechnology Corporation
Page 53 53
54. BRITISH TELECOM’S TECHNOLOGY ROADMAP
2006 - 2021
2051
2006
2008
2016
2011
2013
2021
Video tiles Al Entity Passes A Level ; Electronic Pets Outnumber Organic Pets ; First Bionic Olympics;
Fixed Mobile Convergence; Smart Jelly Babies;
Babies; Electronic Life Form Given Basic Rights;
Rights; Remote Control Devices in Pets;
Electronics Prescriptions; Tooth Regeneration;
Regeneration; Listing of Individual’s DNA;
DNA; Smart Yogurt;
24/7 Blood Chemistry Monitoring; Plastics Bones;
Bones; Artificial Sensors in Cosmetic Surgery; Holographic TV;
Instant Voice Mail; Hydrogen Fuel on UK Forecourts;
Forecourts; Privatised Police Forces;
Forces; Anti-noise technology in gardens;
Smelly Television; Full Voice Interaction With PC. Smart Bacteria;
Bacteria;
Digital Bathroom Mirrors ; Biochemical storage of solar energy.
Nanotechnology Toys Dream link Technology.
Virtual Windows;
Windows;
Active Skin Make-Up;
Make-Up;
1st Extreme Olympics;
Olympics;
Hotel in Orbit;
Orbit;
Holographic Animated Advertisement;
Advertisement;
Cybernetic Use in Sports;
Sports;
Smart Skin for Direct Human Repair ;
Robots Guide Blind People;
People;
100GB Memory Sticks. By British Telecom PLC
Manufacture of Long Diamond Fibres.
Page 54 54
55. 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
Launch “Fast-Track Programme” for I-SME
Establish Angel Network
4. Innovation-Enhancement Points
Source: MOSTI
Page 55 55
59. 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
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60. 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.
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61. 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
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62. NATIONAL MARK OF MALAYSIAN BRAND
The Malaysian Brand mark is aims to:
Page 62
