Raising MSMEs’ contribution to GDP by 1% to 1.5% each year

  • SME
  • Saturday, 20 Nov 2021

Higher targets: The export contribution of MSMEs is expected to increase at an average rate of 2% to 2.5% annually.

THE Entrepreneur Development and Cooperatives Ministry (Medac) is targeting micro, small and medium enterprises (MSMEs) to increase their contribution to gross domestic product (GDP) at an average rate of 1% to 1.5% annually.

Its Minister Tan Sri Noh Omar said the target was projected based on the latest status of the recovery phase nationwide, namely in phases three and four. Under the 12th Malaysia Plan (12MP), the contribution of MSMEs to GDP has been set at 45% in 2025.

“This will revive industrial operations, especially for the affected MSMEs and further drive the economic growth of MSMEs,” ​​he said during the winding up debate on the Supply Bill 2022 at the policy level in Parliament this week.

The GDP contribution of MSMEs for 2020 was 38.2%.

Apart from that, Noh said the export contribution of MSMEs is expected to increase at an average rate of 2% to 2.5% annually.

Based on the 12MP, MSMEs are targeted to contribute 25% of the country’s total exports by 2025.

“MSMEs’ contribution to the country’s total exports in 2020 was 13.5%,” he said.

Meanwhile, Medac – through agencies such as the National Entrepreneurship Institute (INSKEN), Perbadanan Nasional Bhd (Pernas), UDA Holdings and SME Bank – has implemented various types of programmes in the form of financing, guidance and training, digitalisation and market access to assist entrepreneurs.

Among the programmes provided is the Online Sales Guidance Programme by INSKEN.

For 2020 and 2021, a total of RM1.7mil has been spent involving a total of 2,100 participants under the programme.

Under Pernas, the Pybli programme has 478 entrepreneurs who have registered with a total stock keeping unit (SKU) of 696 products.

“As all agencies have their own programmes, the ministry is planning to combine all the platforms into one platform known as MEDAC Mall for the purpose of helping entrepreneurs,” he said. — Bernama

Article type: metered
User Type: anonymous web
User Status:
Campaign ID: 1
Cxense type: free
User access status: 3
Subscribe now to our Premium Plan for an ad-free and unlimited reading experience!


Next In SMEBiz

SMEs can now seek financing from MFA
Furniture sold online, with a twist
Small business owners receive help to thrive
Supporting the automation dream
Business survival insights from homegrown SMEs
Retailers must understand tech-driven shifts to better serve clients
Ultra-rich steered toward new ESG entrepreneurs
Filling the gap for digital talents
Continued appeal in P2P lending
MDEC, AFG to facilitate funding for tech companies

Others Also Read