1. SME
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2. SME Corporation
Malaysia
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3. SME Corp. Malaysia
• Established under the Small and Medium Enterprises
Corporation Malaysia Act 1995 [ACT 539] on 2
October 2009
• Formerly known as the Small and Medium Industries
Development Corporation (SMIDEC)
• A single dedicated agency to formulate overall
policies and strategies for SMEs and to coordinate
programmes across all related Ministries and
Agencies
• The central point of reference for information and
advisory services for all SMEs in Malaysia
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4. Vision & Mission
Vision
The premier organization for the
development of progressive SMEs to
enhance wealth creation and social well-
being of the nation
Mission
Promote the development of
competitive, innovative and resilient
SMEs through effective coordination
and provision of business support
4

5. Corporate Structure
CEO CORP COMM
CEO’s OFFICE AUDIT
STU
DEVELOPMENT &
COORDINATION SUPPORT
IMPLEMENTATION
INTERNATIONAL
SECRETARIAT
BUSINESS CORPORATE INFORMATION
POLICY & PROGRAM BUSINESS STATE OFFICES
ADVISORY & MANAGEMENT TECHNOLOGY
ECONOMY COORDINATION DEVELOPMENT
SUPPORT
KEDAH /
POLICY HR & ORG ICT APP PERLIS
NSDC BAP & E2
PLANNING DEVELOPMENT PLANNING &
BUSINESS
DEVELOPMENT PULAU
DEVELOPMENT
PINANG
*PROGRAMME **BUSINESS FINANCE
STATISTICS
MANAGEMENT ADVISORY MANAGEMENT PERAK
INFRA, NETWO
CEDU
RK & SECURITY
N SEMBILAN
ECONOMICS MACRO SCORE MANAGEMENT
ANALYSIS SUPPORT***
BUSINESS
INNOVATION MELAKA
ORC LEGAL JOHOR
PAHANG
MONITORING
TERENGGANU
KELANTAN
SARAWAK
SABAH
5

6. Roles of SME Corp. Malaysia
EXPANDED ROLE PREVIOUS ROLE
SECRETARIAT TO
MANAGEMENT OF “ONE REFERRAL BUSINESS
THE NATIONAL POLICY COORDINATION
DATA, INFORMATION CENTRE “ ON DEVELOPMENT
SME & PROGRAMME
DISSEMINATION & INFORMATION SUPPORT
DEVELOPMENT IMPLEMENTATION
RESEARCH ON SMES & ADVISORY PROGRAMMES
COUNCIL
CURRENT ROLES & FUNCTIONS OF SME CORP. MALAYSIA

7. Profile of
SMEs in Malaysia
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8. SMEs are the Backbone of the Economy
• SMEs account for a large proportion of businesses in Malaysia:
- 99.2% of establishments (548,267)
- Majority are micro enterprises, with 5 workers and less
Important domestic source of growth
Foundation & support in supply chain
through forward & backward linkages
Balanced growth
Strengthen resilience of the nation's
economy
Provide support to growth of new &
existing areas
Promote private sector-led growth
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Source: Census of Establishments & Enterprises 2005

9. Currently, SMEs are mainly in Services Sector
• Services: 87% share, largest subsector is distributive trade
• Manufacturing: 7% share, mainly in textiles/apparels and F&B industries
• Agriculture: 6% share, plantation/horticulture and fishing
Manufacturing Plantation and horticulture
Agriculture
(7.2 %) (65.6%)
(6.2 %)
Fishery and its services
activities (20.8%)
Textiles & Apparels
Poultry farming (7%)
(23.4%)
Food & Beverages (15%)
Metal & metal products
(13%)
Services Wholesale & Retail (55.5%)
(86.6 %) Restaurant & Hotel
(15.2%)
Transport &
Communication (6.5%)
Source: Census of Establishments & Enterprises 2005
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10. Performance of SMEs Outpaced the Overall Economy
SME growth outperformed overall economy for the period 2005 –
2009 mainly due to supporting policy initiatives such as:
• Establishment of NSDC in 2004; and
• Other supportive policies (PEMUDAH, Visit Malaysia
Year, Government salary increment, RMK9 projects)
GDP Annual Growth (2000 price)
GDP & SME Growth
SME Contribution to:
GDP 31.2%
Employment 56.4%
Exports 19%
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11. Major Challenges Faced by SMEs
Access to Finance
 Difficulty in obtaining financing resulting in reliance on
informal sector
 Reliance on collateral-based lending
 Perceived higher risk for SME lending
 High interest rates
Access to market
 Limited marketing & promotion strategies
 Limited access to domestic & global markets
 Lack of international certification for export and costly
certification process
 Limited use of e-commerce and internet marketing
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12. Major Challenges Faced by SMEs
Access to Advisory Services and Information
 Limited access to advisory services
Access to Technology and Innovation
 Management and technology capability constraint
 Low value add and not competitive – low adoption of
technology
 Limited capability in R&D and technology
Access to Human Capital and HC Development
 Difficulty in retaining manpower
 Inadequate training and inadequate budget for training
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13. Initiatives for 2011
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14. Business Accelerator
Programme (BAP)
This programme enables SMEs to be assisted through
an integrated approach with guidance, including
strengthening their core business, building capacity
and capability, and facilitating access to financing.
Applicants will receive business and technical advisory
services, aimed at enhancing their business potential
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15. PROGRAMME-BASED APPROACH
Programme-based approach
BAP E²
DYNAMIC, COMPETITIVE &
RESILIENT SMEs
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16. PROGRAMME-BASED APPROACH (CONT.)
Diagnose and identify
strengths & weaknesses of
SMEs
Business advisory and BAP SMEs 2-star
recommend action plan to (SCORE) and
SMEs above
Capacity building
E² Micro Enterprises
Provide and facilitate financial of level 3(M-CORE)
support
In collaboration with Bank Rakyat
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In collaboration with SME Bank

17. Components of BAP
• SME Competitiveness Rating
for Enhancement (SCORE)
A diagnostic tool used to rate and enhance competitiveness
Diagnostics Programme
of SMEs based on their performance and capabilities
• Skill Upgrading Short-term courses are provided under the 40 training centres that
have been appointed by SME Corp. Malaysia
Capacity
• Brand Awareness
Building Entrepreneurship Training
Advisory & • One Referral Centre (ORC) Provide advisory services for start-up as well as
Technical established business by Business Counselors and SME
Support Expert Advisory Panel (SEAP)
• Providing advisory services related to access to financing provided by various
Facilitating financial institutions
Access to
Financing
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18. Enrichment & Enhancement
Programme (E2)
This programme enables Micro Enterprises (MEs) to
be assisted through an integrated approach with
guidance, including strengthening their core
business, building capacity and capability, and
facilitating access to financing. Applicants will receive
business and technical advisory services, aimed at
enhancing their business potential
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19. Components of E2
• Micro Enterprise Competitiveness Rating
for Enhancement (M-CORE)
Diagnostics Programme A diagnostic tool used to rate and enhance competitiveness
of MEs based on their performance and capabilities
• Skill Upgrading Short-term courses are provided under the 40 training centres that
have been appointed by SME Corp. Malaysia
Capacity
• Brand Awareness
Building Entrepreneurship Training
Advisory & • One Referral Centre (ORC) Provide advisory services for start-up as well as
Technical established business by Business Counselors and SME
Support Expert Advisory Panel (SEAP)
• Providing advisory services related to access to financing provided by various
Facilitating financial institutions
Access to
Financing
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20. 22

21. One Referral Centre (ORC)
Business
Advisory
SME Registry
Membership Info Centre
ONE
Virtual ORC REFERRAL Link of
CENTRE Ministries/
Agencies
Towards producing national, regional and global champions
Product Gallery
Pocket Talk
Resource Centre
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22. One Referral Centre (ORC)
BUSINESS ADVISORY
- Business Counselor
- SEAP Experts
INFO CENTRE
Centralized Call Centre consists of :
Info Line, Info Email, General Line
ORC LINK
Referral Counter for Ministries, Agencies, Banks & DFIs
Towards producing national, regional and global champions
RESOURCE CENTRE
- Library
- Business Centre : Photostat, printing, etc
- Touch screen kiosk + Internet Kiosk
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23. One Referral Centre (ORC)
POCKET TALK
- Talk from SME Corp.
-Talk from other Ministries, Agencies, Banks, DFIs
- Company presentation
- Book Launch/ Review
PRODUCT GALLERY
Showcase of products by Industry/sector cluster
- Thematic showcase
- Events/ programme
VIRTUAL ORC
Towards producing national, Corporate Website global champions
- SME Corp. regional and
- SME Info Portal
SME REGISTRY MEMBERSHIP
- Membership Card
- Enjoy Benefits : current updates & Invitation for events & programmes
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24. LANDSCAPES FOR ADVISORY SERVICES
ACCESS TO BNM, SME CORP, LUCT & SME CORP
BRANDING
FINANCING BANKS, DFIs, CGC (National Mark)
MASB, MIA KPDNKK, MITI,
ACCOUNTING SUPPLY
SME CORP
TRAINING
HUMAN SIRIM, JAKIM
(MOHR, PSMB, M CERTIFICATION
RESOURCE
OTOUR)
LABOUR (MITI)
TAX GST EXPORT MATRADE
(MOF), LHDN, MIA
FMM, FAMA Pusat Teknologi
MARKETING GREEN TECH
Hijau Nasional
BIOTECHCORP, BUSINESS SME CORP
R&D MARDI, SIRIM, (SMIDEX), MATRADE
MATCHING
UPM, USM (MIHAS &
INTRADE), MITI (SDSI)
PACKAGING LUCT, SIRIM CONSTRUCTION CIDB
LOCAL AUTHORITY BUSINESS MARA, SME
LICENSING
eg: DBKL PREMISE BANK, MIDF PROPERTY
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25. SME Business Counselor
BUSINESS COUNSELORS
Provide business advisory & business counseling to SMEs focusing on the 5
areas i.e. Management, Human Resource, Financial, Marketing & Production
P
I
L
L
A
R
S
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26. Development
Programmes for
SMEs
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27. SME Competitiveness
Rating for Enhancement
(SCORE)
SCORE is a diagnostic tool used to rate
and enhance competitiveness of SMEs
based on their performance and
capabilities
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28. About SCORE
Identifies strengths and weaknesses of SMEs in order to
recommend measures for improvement
OBJECTIVES
Facilitates linkages of
Links export-ready
potential SMEs with large
companies to MATRADE
companies / MNCs
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29. SCORE Parameters
The capability
and performance
are measured
based on 7
parameters that
vary across
sectors
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30. BACKGROUND OF SCORE
• a comprehensive diagnostic tool to rate
Example of Radar Diagram
What is and enhance competitiveness of SMEs
based on their performances and for 3-Star company
SCORE? capabilities.
• developed in August 2007.
• identify strengths and weaknesses for
Function improvements; and
• facilitate linkages.
• Business Performance • Technical capability
• Financial Capability • Quality System
Parameter • Management Capability • Innovation
• Production Capability
• 0 – 2 Stars : Very basic business operation
Characteristics • 3 – 5 Stars : Some degree of sophistication Analysis:
and can be groomed for export Weak in financial capability
Assistance:
Implementation • Retail & Distributive Trade • Maintenance, Repair & Require financial management
Channel (PUNB) Overhaul (MINDEF) training
(Existing • Construction (CIDB) • Professional Services
Collaborators) • ICT (MDeC) (PSDC) 32

31. Background of M-CORE
• a comprehensive diagnostic tool to
What is enhance competitiveness of Micro Example of Radar Diagram
Enterprises for Level 2 Micro Enterprise
M-CORE?
• developed in Feb 2010
Business
Capability
• identifies strengths and 3
Functions weaknesses for improvements;
2.5
2
1.5
1
Financial 0.5 Business
0
Capabilities Operations
• Business Capabilities;
• Financial Capabilities;
Parameters • Operations; and Business
• Management. Managemen
t
• Level 1 : Basic business operations
Characteristics • Level 2 : At average and has a Analysis:
potential To measure capabilities of start-
• Level 3 : Complete the criteria ups or existing micro enterprise
businesses.
Proposed •TEKUN •BSN
Assistance:
Implementation •AGROBANK •AIM
To provide hand holding
Channel •SME BANK •ICU, JPM
assistance
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32. Micro-Enterprise (M-CORE)
Business Business Business Financial Capability
Capability Operation Management
• Quality • Marketing • Management • Initial Capital
Management Channel Structure • Account Book-
• Training • Business • Business keeping
• Employee Infrastructure Development • Account
• Marketing Strategy Management
• Method of • HR
Operation/ • ICT adoption
Services
• Customer
Service
• Brand
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33. The National Mark of
Malaysian Brand
One of the initiatives under the SME-Brand
Development Programme, in collaboration with
SIRIM QAS International Sdn. Bhd. to enhance the
visibility of Malaysia products and services in both
local and international markets
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34. The National Mark of Malaysian Brand
Pre-Requisite Criteria
• Business incorporated / registered
• Operating from legal premises
• A minimum 3-STAR rating under SME
Certified ISO or equivalent
• Own a Registered Brand
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35. The National Mark of Malaysian Brand
Facilitate companies’
access to on-going
local and
international trade
promotion and A&P Invitation to specific
activities by training
MATRADE
Privileged Media opportunities
Coverage organised by SME
Corp. Malaysia and
its partners
Qualifying SMEs would
have privileged Special access
admittance to SME
Benefits passes to MICCI-
Corp. Malaysia SME Corp.
programmes such as of the Malaysia
BAP, Brand
Entrepreneurship Programme mentoring
conference, SMIDEX and programmes
many more
37

36. Branding Innovation
Centre (BIC)
SME Corp. Malaysia in collaboration with Limkokwing
University of Creative Technology (LUCT) has established
the Branding innovation Centre to promote branding to the
SMEs in Malaysia and to assist them in building and
developing their own brands of products and services as
well as to enhance SME products packaging at this Centre
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37. Branding Innovation Centre (BIC)
To provide awareness across the country on
the importance of innovation branding and
packaging on meeting global market needs
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38. Branding Innovation Centre (BIC)
• A bus has been allocated
which operates as the
Mobile Gallery to cover
four regions in peninsular
Malaysia namely
North, South, Central and
East.
• It will be making trips to
designated locations to
Branding and Packaging
hold workshops and
Mobile Gallery
training sessions for
SMEs with branding
related collaborators such 40

39. Innovation Certification for
Enterprise Rating and
Transformation (1-InnoCERT)
A programme to recognise and certify
innovative enterprises and SMEs
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40. 1-InnoCERT
To foster and support innovative SMEs and
enterprises to be globally innovative and
competitive players
Facilitated
access to
financial
incentives and
Eligible to wider market
participate in Eligible for
the Annual SME business
Innovation coaching
Award
Benefits of
the
Programme
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41. 1-InnoCERT
SMEs will be assessed using 4 main
criteria: I
Technology
Technology manufacturing ability innovation
Ability to develop products using ability
Technology
Marketing ability II
Technology
commercialization
ability R&D activity index
Technology Innovation System
Technology Innovation Administration
Technology Accumulation System
Outcome of Technology III Technology Analysis Ability
Competitiveness Progress Technology
Technology management result innovation
Technological Achievements
management
(forecasting)
ability
IV
Technology
innovation
result Management’s innovation ability
Ability to respond to changes
Manager’s sense of values
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42. 1-InnoCERT Mechanism
Applicant conducts a self-audit using the
On-Line Assessment
On-Line Assessment Software
1-InnoCERT Auditor conducts on-site audit to
On-Site Audit verify innovativeness of company
1-InnoCERT Committee The 1-InnoCERT Committee (Chaired by MIGHT)
Approval will provide final approval for certification
Approved 1-InnoCERT SMEs be awarded with
Award of Certification
1-InnoCERT Certification
Provisions of Incentives & Exemptions
Fast Track Program including accelerated processing.
Pre-packaged with 1-InnoCERT Certificate
issuance.
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43. On-line Innovation Self Assessment
Click To Do Online Innovation Self-Assessment at
MIGHT website http://www.might.org.my 45

44. The Malaysia-Japan Automotive
Industry Cooperation
(MAJAICO A-1)
Initiated under the Malaysia-Japan Economic
Partnership Agreement (MJEPA) in July 2006 in
order to develop and improve Malaysian
Automotive Industries to become more competitive
as global players
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45. MAJAICO A-1
To further promote
competitiveness within
automotive components and
parts manufacturing companies
for better market expansion
OBJECTIVES
To upscale local automotive parts and
components manufacturers towards To introduce Kaizen activities
higher value-added activities and through implementation of Lean
upgrade capacity building, especially Production System (LPS)
the SMEs
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46. MAJAICO A-1
Receive guidance and advice
directly from experts in the
automotive industry from
Japan to improve on:
•INVENTORY AND WORKING CAPITAL REDUCTION
•CYCLE TIME REDUCTION
•DELIVERY LEAD-TIME REDUCTION
•PRODUCTIVITY AND QUALITY IMPROVEMENT
•DEFECT REDUCTION
•DIE SETUP TIME REDUCTION
•MANPOWER REDUCTION
•WORK IN PROGRESS (WIP) STOCK REDUCTION
•SPACE SAVINGS
•LOADING EFFICIENCY
48

47. Skills Upgrading
Programme
To provide short-term courses under 41 training
centres appointed by SME Corporation
Malaysia
49

48. Skills Upgrading Programme
Objectives Benefits
To enhance the skills of
To enhance skill and the workforce in order to
increase the
capabilities of SMEs efficiency, productivity, p
in hard and soft skills rofessionalism and
capabilities of SMEs
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49. Business Matching
In accelerating SMEs to be resilient and competitive
in the global supply chain, Business Matching
through the Industrial Linkage Programme (ILP) is
implemented to promote competitive SMEs
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50. Business Matching
To develop competitive and
innovative SMEs
OBJECTIVES
To widen the business
opportunity of SMEs in supplying To encourage SMEs business
products and services to large networking with MNCs and
companies and Multinational GLCs
Companies (MNCs)
52

51. Business Matching
Potential to boost
sales and business
SMEs will be able opportunity
to increase SMEs will increase
visibility among understanding on
potential business the requirements
partners, including and criteria
large needed to supply
companies, MNCs to MNCs and GLCs
and GLCs
Benefits
53

52. SME Expert Advisory Panel
(SEAP)
3-Phase Programme that provides on-site
assistance and transferring technology as well
as technical know-how to the SMEs by the
industry experts
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53. SEAP
Undertake diagnostic audit on SMEs to identify
weaknesses and strengths for them to undertake
remedial measures to enhance their capabilities
The essence of the
remedial measures
SMEs are able to
is to improve
receive advice and
business
guidance from the
practices, producti
industry experts
on and
productivity
Benefits
of the
Programme
55

54. SEAP
• Technology improvement
• Production capacity
• Engineering
FOCUS OF IMPROVEMENT • Automation
• Machinery equipment
• Materials technology
• Process Improvement
• Designing
• Financial Management
• International Standards
• Productivity Improvement
• Maintenance
• Label & Packaging
• Quality Assurance
• ICT and Computerization
• Business system e.g. logistic,
inventory
• Lean Production System
Management 56

55. SMIDEX Showcase
Annual event for SMEs to exhibit their products and
services, and for large skills companies (LSI) and
multinational companies (MNCs) to seek potential
suppliers among SMEs. The yearly event also
provides SMEs with opportunities to network
regionally and exchange ideas and information on
technology and innovation
57

56. SMIDEX
• Exhibit products and services of
Malaysian companies
• Discover new market opportunities
and technology through meetings
with potential customers and
suppliers
• Forge closer linkages and
networking between SMEs and
large companies as well as
multinational corporations (MNCs)
• Exchange and sharing of
experiences and know-how on best
business practices and strategies
• As venue for outsourcing exchange
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57. Enterprise 50 (E50)
A prestigious award programme that recognises
the achievements of Malaysia’s enterprising small
and medium companies, which are well positioned
for the future. 50 winners are selected from their
financial capabilities, operations and management
skills, amongst the nominations received
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58. E50
• To promote a greater pursuit of excellence
amongst local enterprises
• To encourage and recognise the entrepreneurial
spirits in local companies
• To establish a platform on which emerging local
companies can gain recognition and greater
visibility
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59. Virtual SME Info Centre
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60. Virtual SME Info Centre
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61. One Referral Centre
Business Advisory INFOLINE
Services (BAS) 1-300-30-6000
THANK YOU
www.smeinfo.com.my LAMAN WEB
SMS for SMEs Info
& Other Information www.smecorp.gov.my
Send to 15888
SMECORP STATUS SMECORP BORANG
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SME Corp. Malaysia 63