KUALA LUMPUR: Malaysia's micro, small and medium-scale enterprise (MSME) sector is projected to contribute 45 per cent of the country's Gross Domestic Products (GDP) and 25 per cent of total exports by 2025.
Prime Minister Datuk Seri Ismail Sabri Yaakob said efforts to facilitate a sectorial shift from the domestic to global market would be given priority to improve the sector's competitiveness to achieve the set targets.
He said the initiative would be implemented through government to government (G2G) cooperation among Asean and Asia-Pacific Economic Cooperation (Apec) members, as well as other international federations.
"The growth of MSMEs is also given emphasis in the country's economic development.
"Strategies focusing on innovation and digitalisation; as well as sustainability and inclusive growth are expected to create a conducive and holistic entrepreneurship ecosystem," he said in his speech at the 2021 Small and Medium Enterprise Annual Showcase (Smidex) themed 'PMKS: Bangkit Kembali' (MSME: Rise Again).
He said MSMEs contributed RM298 billion of the country's GDP and this had surged to RM512 billion last year.
The sector had also created job opportunities for 7.3 million people and contributed RM118 billion of the country's overall exports, he added.
Ismail Sabri said MSME recovery primarily focuses on two areas outlined as its recovery catalysts.
Firstly, optimisation of innovation, digitalisation and technology usage by the sector to boost the recovery agenda, he said.
He said various activities done through e-commerce include digital payment, long-distance learning, video conference, as well as logistics services are the norm in today's economy, due to the increasing needs and opportunities.
"These are among the efforts to help the MSME familiarise with the Fourth Industrial Revolution's (IR 4.0) competitive era.
"We could also see MSME's presence online has increased two-fold from 35.3 per cent in 2019 (pre-Covid) to 75.8 per cent in 2021 (post-Covid)."
Secondly, he said MSME should incorporate principles of sustainability, which covers environment, social and governance (ESG) in their business strategies.
Ismail Sabri said SME Corp Malaysia and United Nations Global Compact Network Malaysia & Brunei (UNGCMYB) are working together in developing sustainable MSME through a digital platform called Action Centre for Sustainable Development of SMEs (ACCESS).
He said the platform will provide consultation, capacity development for MSME and networking with big companies involved with Sustainable Development Goals (SDG) and ESG.
"The government agreed that the MSME sector is the one group mostly affected by the Covid-19 pandemic, with 95.3 per cent drastic drop in sales in the early period of (disease) containment.
"Since March 2020, a total of RM196 billion has been allocated to help MSME in dealing with the impact of Covid-19 pandemic. The measures have been and will be implemented through ten comprehensive economic packages including two packages in the (national) annual budget."
He said entrepreneurs in all categories – MSME, social enterprises, and informal entrepreneurs - benefitted from the recently announced 12th Malaysia Plan and 2022 Budget.
He said the government also introduced several improvements to ensure a sustainable economic growth with more equitable opportunities and earnings.
"Specific focus is given to transform MSME as the new growth driver and empower digitalisation in practising the new normal." -- Investor.com
