KUALA LUMPUR, Sept 11 — The Mid-Term Review of the 12th Malaysia Plan (2021 – 2025) report has outlined aspirations for micro, small and medium enterprises (MSMEs) to overcome barriers, to grow and scale up to stay competitive and resilient, the Ministry of Economy said today.
Several areas will be strengthened to achieve the set targets, particularly in increasing productivity and exports, said the report, which was released today.
The ministry said in the report it aims to push MSMEs’ share of exports to 15 per cent in 2025 from 10.5 per cent recorded last year and their share of the gross domestic product (GDP) to 41 per cent in 2025.
The report said the average growth of MSME labour productivity is expected to expand at a lower pace of 3.5 per cent during 2021 – 2025, against 7.5 per cent in 2021 and 2022.
It said efforts to unleash MSMEs’ potential include cooperatives, agriculture-based associations and social enterprises, and integrating MSMEs into the domestic and global supply chain.
Focus will also be given to improving accessibility to financing and capacity development programmes and accelerating productivity growth among MSMEs.
These measures will ensure MSMEs regain their growth momentum and stay vibrant and progressive.
Strengthening MSME Position in the Global Supply Chain
Measures proposed to increase their participation in the global supply chain include:
- The provision of targeted assistance for MSMEs to raise exports via market intelligence, capacity building as well as enhancement of supply chain financing and guarantee schemes.
- The implementation of supplier development programmes including specific accreditation and certification assessment to build MSME capacity.
- The creation of proactive measures via broadcasting requirements on local sourcing by foreign investors before the realisation of investments.
- The development of a structured and holistic environmental, social, and corporate governance ecosystem for MSMEs to increase their value proposition in the domestic and global supply chain.
Strong participation of MSMEs in the supply chain will transform firms into high-growth entities, characterised by a higher concentration of knowledge and technology.
Simultaneously, resources will be reprioritised for better distribution of funding assistance. Increasing the number of these entities will result in high value-added to the economy and more high-paying jobs in the future, it said.
— Bernama
