New incentive packages for SMEs

Bernama, 7 June 2011


KUALA LUMPUR: The government today announced a package of incentives under the Green Lane facility that will benefit innovative Small and Medium Enterprises (SMEs) to support their growth.

Deputy Prime Minister Tan Sri Muhyiddin Yassin said SMEs that qualify for the incentives will gain a two per cent interest rebate for loans approved by developmental financial institutions.

In addition, he said, the stamp duty on the loan agreement document would also be exempted.
He also said qualifying SMEs would have access to a tax deduction on expenses incurred to acquire 1-inno CERT Certification such as for site audit,certification and logistics costs.

"The 1-innoCERT programme criteria and mechanism was used to select the inaugural SME innovation award winners," Muhyiddin said at the SMIDEX 2011:SME Innovation Showcase here today.

He said the SMEs concerned would also be given fast track registration in e-Procurement, from the current seven days to one day, upon submission of complete documentation.

"They also get priority to participate in Government Offset Programmes as well as privileges in the government and the Ministry of Finance Incorporated companies' procurement," he added.

Muhyiddin said that in a developed nation, SMEs contributed between 40and 60 per cent to the country's Gross Domestic Product (GDP)and 60 and 70 percent to its employment.

"In Malaysia, SMEs contribute 31 per cent to the GDP and 59 per cent to employment. Indeed, the SME sector has a lot of catching up to do, as we work towards achieving the developed nation status by 2020," he added.

In supporting the development and growth of the SME sector, he said the government had allocated a total of RM26.6 billion for development programmes,benefiting more than 2.4 million people.

"This year alone, the government through the various ministries and agencies, is implementing 219 SME development programmes costing RM5.9 billion,"he said.

Meanwhile, Deputy Minister of International Trade and Industry Datuk Mukhriz Tun Dr. Mahathir said SME Corp had collaborated with SIRIM Bhd to conduct an extensive assessment and audit of the 1-InnoCERT for this year.

He said a total of 169 companies had undergone the online assessment, of which seven, were repeat companies.

Of this number, 37 companies were successfully certified and were in the running for the inaugural SME Innovation Awards 2011. Mukhriz also said that SMEs need to adopt the right strategies to compete in order to reap opportunities arising from Free Trade Agreements (FTAs).

He said among the strategies are, an understanding of the characteristics and requirements of target markets, application of requisite technologies to support business expansion, compliance to international standards and adopting good business practices such as compliance to corporate governance as well as supporting corporate social responsibility.

The inaugural SME Innovation Awards was held in conjunction with the SMIDEX2011:SME Innovation Showcase and recognises the most innovative SMEs for the year in five categories.

Proeight Offshore Engineering Sdn Bhd won the Best Innovation Award in Manufacturing as well the Grand Prize Award while Biofusion Sdn Bhd bagged the Best Innovation Award in Biotechnology & Agro Technology.

Malaysia Microelectronic Solutions Sdn Bhd was awarded the Best Innovation Award in Engineering & Industrial Design while bio-refinery company, Success Nexus Sdn Bhd, walked away with the Best Innovation Award in Green Technology.

N2N Global Solutions Sdn Bhd won the Best Innovation Award in ICT &Electrical & Electronics.

The awards are a joint initiative of SME Corporation and SIRIM. Winners of each category took home a total of RM200,000 cash and the Grand Prize winner bagged RM1 million in cash.