60pc workers engaged in SMEs
Published on: Tuesday, June 30, 2015
Kota Kinabalu: Small and medium enterprises (SMEs) make up more than 97 per cent of total businesses and employ about 60 per cent of the workforce in Malaysia. Minister of Special Tasks Datuk Teo Chee Kang said SMEs, therefore, played a very significant role in the economic development and social uplifting of a country."SMEs are diverse in nature. They can be established for any kind of business activities in urban or rural areas.
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"In many countries, SMEs are considered as the backbone of their economies."In Malaysia, Teo said SMEs were on track to contribute 41 per cent to the country's gross domestic product (GDP) by 2020 compared to 33 per cent in year 2013. "It is a necessary and achievable target if we were to compare ourselves to some other countries, for example, the contribution of SME to GDP is 60 per cent for China, 50 per cent for Korea, 55.3 per cent for Japan and 57 per cent for Germany."Speaking at the inaugural installation gala dinner of the Malaysia Entrepreneurs' Development Association (PUMM) Sabah State Liaison Committee here on Sunday, Teo said entrepreneurship was one of the main drivers of economic growth which created wealth, innovation and technology deployment.
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"I am confident that the new commission of PUMM in Sabah will serve as a catalyst in facilitating the growth of local entrepreneurs in Sabah, along with providing a platform for close cooperation and joint activities of entrepreneurs from East and West Malaysia under PUMM," he said. On another note, Teo said the SMEs were not free from challenges.
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Among others, lack of managerial capabilities, lack of financing, low productivity, technology and heavy regulatory burden can be obstacles to the growth and success of SMEs. "An estimate of more than 50 per cent of the SMEs collapse within the first five years of operation," he added. Therefore, he believed that PUMM could play an important role for the economic development of the country by nurturing and creating more successful entrepreneurs and SMEs through networking and the sharing of knowledge and experience. "I understand that PUMM organises seminars, talks, forums, workshops, business trips on a regular basis. "I trust that such self-improvement activities will enrich and empower the participants especially the young entrepreneurs."In this highly globalised and competitive business environment, Teo said business was not merely about maximisation of profit but about the ability to be innovative and to stay resilient during the tough times."It is about sustainability, an enduring and balanced approach to economic activity, environmental responsibility and societal benefit."Teo said sustainability was about meeting the challenge of ensuring that future generations can enjoy the same kind of lifestyle enjoyed by today's generation. This naturally involves taking a long term perspective in balancing economic, environmental and social impacts of business, he said. "I wish to remind young entrepreneurs to go beyond the focus on profit maximisation, and to shift from the focus on monetary interest of the shareholders to the interest of shareholders in creating a balanced society and a sustainable business environment for the future generations."As Malaysia is heading in the direction of becoming a high income nation, Teo said PUMM played an important role in supporting the government's vision in assisting and educating the young entrepreneurs and to equip them with tomorrow's skills to transform their businesses."I believe that PUMM has the right recipe for success. Stay up-to-date by following Daily Express’s Telegram channel.
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"Your active networking events have provided opportunities for sharing of resources and ideas so that our local entrepreneurs can become more competitive in both local and international markets."The new Sabah committee is led by chairman Andrew Thu under the leadership of PUMM president Dato' Dr Tony Looi.