SME Corporation Malaysia

Memorandums of Understanding (MoUs)

SME Corp. Malaysia has entered into Memorandums of Understandings (MoUs) with various international partners with the objective of exchanging best practices, experiences and information, as well as facilitating business matchings and linkages to contribute towards the development of small and medium enterprises (SMEs).

Since 2006, SME Corp. Malaysia has signed 16 MoUs with:

Year	Organisation
2019	Enterprise Georgia
2018	National Small Indian Corporation (NSIC), India
2016	The Small Enterprise Development Agency (SEDA), South Africa
2015	Agency for Regional Industry Development (ARID), Viet Nam National Institute of Entrepreneurs (INADEM), Mexico
2013	Entrepreneurship Development Fund “DAMU” JSC (“DAMU”), Republic of Kazakhstan (Renewed in 2017) Small Enterprise Development Fund (SEDF), Republic of Yemen
2011	Small & Medium Enterprises Development Corporation (KOSGEB), Turkey (Renewed in 2017)
2010	Entrepreneur Development Centre (EDC), Brunei Darussalam (Renewed in 2016) Social Fund for Development (SDF), Egypt
2009	Directorate General for the Development of Small & Medium Enterprises (DGDSME), Sultanate of Oman The Syrian Enterprises and Business Centre, Syrian Arab Republic
2007	Organization for Small & Medium Enterprises & Regional Innovation (SMRJ), Japan (Renewed in 2010, 2013, 2016 and 2021) Small & Medium Business Corporation (SBC), South Korea (Now officially known as Korea SMEs and Start-Ups Agency - KOSME) (Renewed in 2010, 2013 and 2017)
2006	Office of SMEs Promotion (OSMEP), Thailand (Renewed in 2011) Iran Small Industries & Industrial Parks Organisation (ISIPO), Iran (Renewed in 2011 and 2014)

Malaysian Technical Cooperation Programme (MTCP)

The Malaysian Technical Cooperation Programme (MTCP) was initiated at the First Commonwealth Heads of Government Meeting (CHOGM) for Asia Pacific Region in Sydney, in February 1978. The MTCP was officially launched on 7th September 1980 at the Commonwealth Heads of State Meeting in New Delhi.

The MTCP signifies Malaysia’s commitment to South-South Cooperation, in particular technical cooperation among developing countries. Annually more than 50 short-term specialised courses are offered by leading Malaysian training institutions, many of which are centres of excellence for training.

In line with the spirit of South-South Cooperation, Malaysia through MTCP shares its development experiences and expertise with other developing countries. MTCP is formulated based on the belief that the development of a country depends on the quality of its human resources. The programme forms the commitment of the Government of Malaysia towards the promotion of technical cooperation among developing countries, strengthening of regional and sub-regional cooperation, as well as nurturing collective self-reliance among developing countries.

The MTCP programmes are designed to meet the ever changing needs and requirements of MTCP recipient countries in collaboration with Malaysian training institutions. Objectives of the MTCP includes:

To share experience with other developing countries;
To strengthen bilateral ties with developing countries;
To encourage and promote South-South Cooperation; and
To promote technical cooperation amongst developing countries.

SME Corp. Malaysia is consider one of the training Institute under the MTCP since 2006. Starting from 2011, SME Corp. Malaysia enters into a tripartite collaboration with the support of Japan International Cooperation Agency (JICA) and Malaysian Technical Cooperation Programme (MTCP), Ministry of Foreign Affairs Malaysia to organise Third Country Training Programme (TCTP), a yearly capacity-building programme. This programme serves as an interactive platform to share information and experiences in formulating and implementing SME development policies and initiatives.

To date, a total of 395 participants, representing various Ministries and agencies related to SME development from 55 African countries, have attended the TCTP.

Asia-Pacific Economic Cooperation (APEC)

Background of APEC

Source from APEC Policy Support Unit

The Asia-Pacific Economic Cooperation (APEC) is one of the leading economic fora established in 1989 which aims at supporting sustainable economic growth and prosperity in the region. Its 21 member economies collaborate closely to build a dynamic and harmonious Asia-Pacific community by championing free and open trade and investment, promoting and accelerating regional economic integration, encouraging economic and technical cooperation, as well as facilitating a favourable and sustainable business environment. Malaysia is one of the founding members of APEC in 1989, alongside 11 other economies, namely Australia, Brunei Darussalam, Canada, Indonesia, Japan, Republic of Korea, New Zealand, Philippines, Singapore, Thailand and United States. China, Hong Kong and Chinese Taipei joined in 1991. Mexico and Papua New Guinea followed suit in 1993. Chile acceded in 1994. Peru, Russia and Viet Nam joined later in 1998 taking the full membership to 21.

SMEs account for over 97% of all enterprises in the APEC region and employ over half of the workforce. SMEs contribute significantly to economic growth across APEC member economies with the SME share of GDP ranging from 20 - 50%.

For more information on APEC please visit the following link http://www.apec.org/

APEC SME Economic Contribution

F economic1 F economic2
Source: Overview of the SME Sector in the APEC Region: Key Issues on Market Access and Internationalisation by APEC Policy Support Unit (April 2020)

SME Corp. Malaysia’s Role in APEC

Apart from assuming the role as the Central Coordinating Agency (CCA) that coordinates the SME development programmes across more than 17 ministries and 60 agencies in Malaysia, SME Corp. Malaysia is also an active member that supports the Ministry of Entrepreneur Development and Cooperatives (MEDAC) as the national focal point to the Asia-Pacific Economic Cooperation SME Working Group (APEC SMEWG).

Through our involvement in Asia-Pacific Economic Cooperation (APEC), continuous efforts are made in ensuring Malaysian SMEs obtain optimum benefits via active participation in various APEC programmes and activities. APEC is active in promoting the sharing of knowledge and information by making various economic studies, benchmarking and best practices that are available online for member economies to access. This eases cross-referencing among member economies including Malaysia, to develop policies and programmes that will facilitate SMEs development in the respective countries.

In addition, Malaysia also works closely across different Working Groups (WGs) in ensuring that the APEC initiatives benefit the SMEs in Malaysia and other member economies collectively.

APEC SME Working Group (SMEWG)

There are nearly 150 million businesses considered to be SMEs across the APEC region, accounting for around two-thirds of employment. In most APEC economies, over 98% of enterprises are considered to be SMEs, with more than half having shares over 99%. It is evident that the SMEs are the vehicle that creates most of the employment in Asia-Pacific and are also the backbone for regional economic growth.

In line with its vision to develop progressive SMEs, the rich platform of APEC provides great opportunities for Malaysia to learn on best policies and practices, as well as creating synergy between Malaysian SMEs and the SMEs in the other APEC member economies. SME Corp. Malaysia, under the ambit of the Ministry of Entrepreneur Development and Cooperatives (MEDAC), assumes significant roles in the APEC SME Working Group (SMEWG). The APEC SMEWG meets twice a year to plan and work on initiatives that would benefit the SMEs across APEC economies.

The SMEWG has been actively assuming its role to encourage development of SMEs among the APEC member economies. The SMEWG was established in February 1995 as the Ad Hoc Policy Level Group on SMEs (PLGSME). The group was then renamed as the Small and Medium Enterprises Working Group (SMEWG) in the year 2000. The SMEWG is the champion within the APEC region for inclusive development of sustainable SMEs that are well prepared to meet the challenges of the 21st century.

The SMEWG has since been putting in endless efforts to promote the development of an enabling business environment and fostering capacity building among the SMEs. It enhances the synergy with other APEC foras, private sectors and stakeholders to promote the development and growth of SMEs by maximising the benefits of policy dialogues and sharing of best practices in the APEC region. Moreover, the SMEWG also serves as a vehicle to mainstream SME considerations into the mandates and activities of other APEC groups, including institutional lending, structural reform and telecommunications infrastructure.

For more information on the APEC SME Working Group, please visit the following link: http://apec.org/Groups/SOM-Steering-Committee-on-Economic-and-Technical-Cooperation/Working-Groups/Small-and-Medium-Enterprises

APEC SME Ministerial Meeting (SMEMM)

APEC has always recognise the significant role of SMEs in the growth and dynamism of the Asia-Pacific region. The APEC SME Ministerial Meeting (SMEMM) is held annually to discuss the SMEs issues in greater depth. At its first meeting in 1993, APEC Leaders identified the importance of APEC in advancing a policy dialogue on SMEs.

Under the overarching theme of APEC 2020 “Optimising Human Potential towards a Resilient Future of Shared Prosperity: Pivot. Prioritise. Progress”, the 26th APEC SME Ministerial Meeting (SMEMM) was virtually hosted on 23 October 2020 where all the APEC SME Ministers convened lead by the Chairmanship of H.E. Dato Sri Dr. Haji Wan Junaidi Bin Tuanku Jaafar, Minister of Entrepreneur Development and Cooperatives, Malaysia. The SMEMM discussed matters under two main sub-themes which were:-

COVID-19 and MSMEs – Best practices to mitigating the impact of the Pandemic; and
Digitalising MSMEs for an inclusive and sustainable New Normal

In September 2020 SME Ministers endorsed the APEC SME Working Group (SMEWG) Strategic Plan for 2021–2024, which provided a roadmap to address critical issues pertaining to the growth of SMEs and microenterprises in the APEC region. The SMEWG will focus on five priority areas for its Strategic Plan 2021-2024:

Entrepreneurship, innovation, and start-ups;
SME access to international markets and global value chains (GVCs);
Inclusive capability development towards digitalization;
Access to finance and alternative financial solutions; and
Government to business interaction.

Association of Southeast Asian Nations (ASEAN)

ASEAN Inclusive Business (IB) Awards

ASEAN Inclusive Business (IB) Awards highlights best practices of companies with business models designed to make profit while solving problems of the poor and low-income communities.

For more information, kindly access the link below:
https://asean.org/wp-content/uploads/2021/09/6.-ASEAN-IB-Promotion-Guidelines-Endorsed-at-the-52nd-AEM.pdf

ASEAN IB Awards Recipients

Association of Southeast Asian Nation (ASEAN)

The Association of Southeast Asian Nations or ASEAN, was established on 8 August 1967 in Bangkok, Thailand, with the signing of the ASEAN Declaration (Bangkok Declaration) by the Founding Fathers of ASEAN, namely Indonesia, Malaysia, Philippines, Singapore and Thailand. Brunei Darussalam then joined on 7 January 1984, Viet Nam on 28 July 1995, Lao PDR and Myanmar on 23 July 1997, and Cambodia on 30 April 1999, making up what is today the ten Member States of ASEAN.The Association of Southeast Asian Nations, or ASEAN, was established on 8 August 1967 in Bangkok, Thailand, with the signing of the ASEAN Declaration (Bangkok Declaration) by the Founding Fathers of ASEAN, namely Indonesia, Malaysia, Philippines, Singapore and Thailand. Brunei Darussalam then joined on 7 January 1984, Viet Nam on 28 July 1995, Lao PDR and Myanmar on 23 July 1997, and Cambodia on 30 April 1999, making up what is today the ten Member States of ASEAN.

ASEAN MEMBER STATES (AMS)

At the 9th ASEAN Summit in 2003, the ASEAN Leaders resolved that an ASEAN Community shall be established. During the 12th ASEAN Summit in January 2007, the Leaders affirmed their strong commitment to accelerate the establishment of an ASEAN Community by 2015 and signed the Cebu Declaration on the Acceleration of the Establishment of an ASEAN Community by 2015.

ASEAN COMMUNITY

ASEAN ECONOMIC COMMUNITY

ASEAN Coordinating Committee on Micro, Small and Medium Enterprises (ACCMSME)

ACCMSME, or previously known as ASEAN SME Working Group (SMEWG), is the ASEAN body responsible for SME development and promotion in ASEAN. It is under the purview of ASEAN Economic Minister (AEM).

ASEAN1

As a background, cooperation on Small and Medium Enterprise dated way back in 1995, when SME development becomes one of ASEAN's priorities. In this regard, ASEAN SME Agencies Working Group (known as SMEWG) was created to formulate policies, programs and activities for SME development. SMEWG serves as a forum for consultation and coordination to ensure that SME development continues to evolve in line with the ASEAN integration process and to support the establishment of the ASEAN Economic Community (AEC).

On 21 January 2016, the ASEAN SMEWG was upgraded to the ASEAN Coordinating Committee of Micro, Small and Medium Enterprises or ACCMSME to reflect the scope of work which includes micro enterprises as well as the need to extend committee membership including from other fields. The ACCMSME Meeting is held twice a year hosted in rotation among ASEAN countries.

ASEAN2

Among the functions of ACCMSME is as a platform to:

Formulate policies, programs and activities for the implementation of the ASEAN Strategic Action Plan for SME Development - SAP SMED 2025;
Coordinate and discuss issues of cooperation on SMEs among ASEAN countries with dialogue partners such as Japan, Korea and China; as well as with development partners such as the United States Agency for International Development (USAID) through ASEAN Connectivity through Trade and Investment (ACTI), Organization for Economic Co-operation and Development (OECD) and Gesellschaft für Internationale Zusammenarbeit (GIZ), Germany; and
Coordinate ASEAN participation in activities related to development of SMEs internationally such as Asia-Europe Meeting (ASEM), Asia Pacific Economic Cooperation (APEC) and others.

Stepping into the era of ASEAN Economic Community, at the regional level, programmes and initiatives on SME development will be guided by a plan developed by ACCMSME known as ASEAN Strategic Action Plan for SME Development 2016-2025 (SAPSMED 2025).

The ASEAN Strategic Action Plan on SME Development (SAPSMED) 2016 – 2025 can be downloaded at the following link:
https://asean.org/storage/2015/12/SAP-SMED-Final.pdf

ASEAN SME DEVELOPMENT

Initiatives under ASEAN for Entrepreneurs and SMEs:

1. ASEAN SME Service Center

The ASEAN SME Service Center provides information and services on productivity, technology, innovation, market access, internationalization, finance, policy, human capital development etc.

Latest trends and activities related to SMEs in the ASEAN region can also be found in the website http://www.aseansme.org/home

2. ASEAN SME Online Academy

The ASEAN SME Academy is a one-stop, open-access gateway that provides business information and training resources to support ASEAN Small and Medium Enterprises (SME) development and internationalization. The Academy works to improve the business development services to SMEs through accessible courses and business information via computer, smart phones, and tablets.

The Academy provides courses and tools that cover subjects such as finance / accounting, management, marketing, operation, technology and trade/logistics. It also assists SMEs to find networking opportunities and gain access to region-specific information to further grow and upgrade their businesses.

For more information on the ASEAN SME Academy, please explore the website and infographic below: www.asean-sme-academy.org

3. ASEAN Trade Repository (ATR)

The ASEAN Trade Repository (ATR) provides a single point of access to all the trade-related information of ASEAN Member States. The ATR is an ASEAN-level IT interface linked by means of hyperlinks to a series of interoperable National Trade Repositories (NTRs) that provide and maintain the national-level trade related information and the actual contents.

The trade-related information accessible through the ATR is organized on the basis of nine ‘topics’ in line with Article 13 of the ASEAN Trade in Goods Agreement (ATIGA). All the actual information is available on NTRs of the ASEAN Member States and duly maintained by their respective Governments.

The information found on the ATR is accessible both by ‘topic’ and by ‘country’ (i.e., the ten ASEAN Member States). The nine ‘topics’ are the following:

Tariff nomenclature;
MFN tariffs, preferential tariffs offered under the ATIGA and other Agreements of ASEAN with its Dialogue Partners;
Rules of origin;
Non-tariff measures;
National trade and customs laws and rules;
Procedures and documentary requirements;
Administrative rulings;
Best practices in trade facilitation; and
List of authorised economic operators.

The structure of the ATR allows, for each topic, to retrieve the trade-related information sought in each ASEAN Member State.
The ATR also includes a link to the webpage of the ASEAN Consultation to Solve Trade and Investment Issues. www.atr.asean.org

4. ASSIST-The ASEAN Solutions for Investments, Services and Trade

The ASSIST mechanism was established to implement the ASEAN Consultations to Solve Trade and Investment Issues (ACT) mandated under the ASEAN Trade in Goods Agreement (ATIGA) and it is loosely based on the European Union’s SOLVIT system.

What types of issues does ASSIST deal with?

Various tariff and non-tariff-related measures affecting goods;
Issues in the area of cross-border services; and
Measures limiting investment in various sectors of ASEAN integration.

ASSIST does not deal with any of these issues:

Employee/employer disputes or discrimination claims;
Matters that are being or have been litigated/arbitrated in national jurisdictions;
Complaints against individuals or companies;
Matters not related to intra-ASEAN trade, services or investment;
Visa and residence rights; and
Cross-border movement of capital or payments.

https://assist.asean.org/en/home

ASEAN Strategic Action Plan for SME Development 2016-2025

Since January 2014, the ASEAN SME Working Group has been developing the ASEAN Strategic Action Plan for SME Development 2016-2025 (SAP SMED 2025) .

The plan involves holistic approach towards SME development in the region to effectively contribute towards narrowing the development gaps, especially from economic perspective for better integration. ASEAN SME Working Group (ASEAN SMEWG) have collaborated with the Economic Research Institute for ASEAN and East Asia (ERIA) to produce the SME Policy Index for ASEAN. As a result, several gaps were identified relating to the SME development ecosystem among AMS, especially between the ASEAN-6 and CLMV countries (Cambodia, Laos, Myanmar and Vietnam).

In addressing the gap, the SAP SMED 2025 aims to enhance the resilience of ASEAN SMEs in an increasingly competitive economic environment and support their growth and development through the vision of a “Globally Competitive and Innovative SMEs”. This plan will be the game changer for SME Development in the ASEAN region for the next 10 years. The SAP SMED 2025 will promote the development of entrepreneurs and SMEs facilitating their integration into the regional and global value chain.

ACCMSMS Publications

Formalisation of Micro Enterprises in ASEAN
https://asean.org/storage/2012/05/Formalisation-of-Micro-Enterprises-in-ASEAN-POLICY-INSIGHT-2020-final-3.pdf
The Role of Competition Policy in Strengthening the Business Environment for MSMEs in the ASEAN Region
https://www.unescap.org/sites/default/d8files/event-documents/Competition%20Policy%20and%20Strengthening%20MSMEs%20in%20ASEAN.pdf
Enterprise Policy Responses to COVID-19 in ASEAN Measures to boost MSME resilience
https://asean.org/storage/2012/05/Policy-Insight-Enterprise-Policy-Responses-to-COVID-19-in-ASEAN-June-2020.pdf
ASEAN Gender Outlook: Achieving the SDGs for all and leaving no woman or girl behind
https://investinginwomen.asia/knowledge/asean-gender-outlook-2021/
Alternative Financing Instruments for ASEAN SMEs
https://asean.org/storage/2012/05/Alternative-Financing-Instruments-for-ASEAN-SMEs.pdf

Memorandums of Understanding (MoUs)

Malaysian Technical Cooperation Programme (MTCP)