KUALA LUMPUR: The development of Small and Medium Enterprises (SMEs) in Malaysia is well-structured and coordinated, due to the government's high commitment in providing a conducive ecosystem to promote growth and sustainability.

Deputy Prime Minister Datuk Seri Dr Ahmad Zahid Hamidi said a sound institutional framework, clear policy plan, efficient delivery and facilitation of comprehensive, integrated programmes for SMEs, has been put in motion to develop SMEs into dynamic global players.

"The development of SMEs is a top priority under the 11th Malaysia Plan as Malaysia moves towards becoming a high-income economy.

"Efforts are being intensified to expedite implementation of the six High Impact Programmes (HIPs) and 26 other initiatives under the SME Masterplan, which are critical in meeting the set goals and targets," he said in his speech at the Enterprise 50 (E50) Award 2016 presentation ceremony here today.

Ahmad Zahid said despite the prevailing challenges from slower global economic growth and economic reforms in the domestic economy, the government is confident that SMEs will continue to be resilient and agile, rising to and above the challenges.

He said continuous proactive measures by the government to cushion the impact of the economic slowdown, together with Malaysia's steady domestic demand and stable employment market, are expected to help alleviate the downward pressures on SME growth.

"For 2016, SME gross domestic product (GDP)growth is projected to expand between five per cent and 5.5 per cent," he added.

In 2015, SMEs contributed 36.3 per cent to GDP from 29.4 per cent in 2005, while the share to employment rose to 65.5 per cent compared to 56.8 per cent.

Meanwhile, SME exports have steadily increased over the years to 17.6 per cent, Ahmad Zahid said.

He said with all these key incentives in place for 2017, including the RM6.7 billion allocated for SME development in the Budget 2017, the entrepreneurial ecosystem is expected to be more vibrant, alongside an enhanced level of confidence.

The ongoing liberalisation, he said of the market place resulting from globalisation - including the formation of the ASEAN Economic Community (AEC) with a population of over 630 million people - will collectively lead to an expanded potential market for Malaysian SMEs.

"This makes it even more crucial for SMEs to compete globally. In helping our SMEs grow and expand beyond borders, the government is taking imperative and progressive measures to intensify their internationalisation by enhancing global competitiveness and exports," he said.

The E50 is a prestigious award programme that recognises the achievements of Malaysia's enterprising SMEs, which are well positioned for the future.

A total of 50 winners were selected based on their financial capabilities, operations and management competencies, from among the nominations received.

There were 1,355 companies of four and five star score rating invited to be nominated, and of which only the top 50 were picked for their excellence.

All these companies had to undergo a stringent evaluation process, based on various parameters including management processes, innovation, market strategy, technology use, export revenue, investment in capital, training and also Research and Development.

Themed, "Celebrating Malaysia's Enterprising Spirit", the E50 Award is marking its 19th year since inception.

The E50 Award has proven to be an invaluable public-private partnership initiative in showcasing Malaysian business success to promote the "Malaysian Brand" across the globe.

It is organised through close collaboration between SME Corp. Malaysia, Deloitte Malaysia and strategic partners such as MIDF, Telekom Malaysia and RHB Bank, with Media Prima and Malaysia SME as the media partners.

Despite the challenging economic environment faced by industry players today, this years' winners portray promising business opportunities and sustainability, as 70 per cent of them have already penetrated foreign markets.

SME Corp. Malaysia believes the number will increase from time to time.

This is in line with the government's agenda in promoting business internationalisation for SMEs in Malaysia to achieve the desired 41 per cent contribution to GDP, 65 per cent in employment share and 23 per cent of exports as a high income nation in 2020.

A new category, the E50 Women Entrepreneur Award, has been introduced this year, with the aim of promoting women entrepreneurs as exemplary businesses.

This year's top 10 winners were Exis Tech Sdn Bhd, Hexa Food Sdn Bhd, IX Telecome Sdn Bhd, Koyoko M P Sdn Bhd, MYCO2 Sdn Bhd, PRM Foods & Marketing Sdn Bhd, Sin Sing Coffee Sdn Bhd, Siti Khadijah Apparel Sdn Bhd, ST Tiew Dental Group Sdn Bhd and Top-Mech Provincial Sdn Bhd.

The winners received the Enterprise 50 award trophy and certificate at the award dinner.

They will be automatically nominated for the Industry Excellence Award and the National Productivity Award and among others, be able to use the Enterprise 50 logo on their corporate collaterals, be featured in the Enterprise 50 homepage www.e50.com.my and receive media coverage.

Also present at the awards ceremony was Second Minister of International Trade and Industry Datuk Seri Ong Ka Chuan, the Deputy Minister (Industry)Datuk Ahmad Maslan, Chairman of SME Corp. Malaysia Tan Sri Dr Mohamed Al Amin Abdul Majid Mohamed and Executive Director of Deloitte Malaysia, Datuk Mohd Nizar Mohd Najib.

-- BERNAMA