Resolve problems faced by SMEs, Govt urged

JOHOR BARU: The Government must address existing problems related to the small and medium enterprises (SMEs) first if it wants them to make a higher contribution to the country’s gross domestic product (GDP) growth, said south Johor SME adviser Teh Kee Sin.

He said there was a need to boost the SMEs GDP contribution as outlined in the SME Master Plan 2012 which targeted a 41% GDP in 2020.

“We are looking forward to the upcoming budget which will allocate more assistance and funding for the SMEs to overcome the present tough business conditions,” he said.

Teh said at the same time, there were some pressing issues which needed immediate attention from the Government, such as the manpower shortage and the implementation of the Sales and Service Tax (SST).

He said a majority of the SMEs were still in the dark as on the manpower shortage and SST issues as there seemed to be contradictories in statements made at the Federal level.

“If all these are addressed and resolved, I am sure local SMEs would contribute more towards the GDP,” he said.

Teh, who is also an entrepreneur, said this in response to news reports quoting Entrepreneur Development Minister Mohd Redzuan Yusof on the Government’s target to boost the nation’s GDP from the current 37% to 42% next year.

Mohd Redzuan had said if SMEs in other countries such as Europe could contribute more than 50% to the GDP of their countries, the Government was confident the target to increase local SMEs contribution by 5% was realistic and achievable.

Teh said the Government must encourage local SMEs to go for high value business activities rather than play a supporting role only.

“The focus should be on e-commerce business strategy to assist them to have their own brands so that they can have a strong presence in the global business arena,” he said.

Meanwhile, Johor Indian Business Association (Jiba) president P.Sivakumar said the Government should relook policies preventing small private institutions from offering technical and vocational education (TVET) to school dropouts and workers.

“There should not be any discrimination by allowing only bigger technical institutions to offer such courses,” he said.

He said Institut Teknologi Jiba, which opened in 1983, was forced to close down in 2004, as it did not get the accreditation from the Malaysian Qualification Agency (MQA).

Sivakumar said the institute was licensed to offer electronics and electrical courses for students and workers but had to cease operations as it did not get the MQA accreditation.

“The contradictions in policies to satisfy certain parties is a major loss to the country and does not serve the purpose of producing semi-skilled and skilled workers,” he said.

Sivakumar said from 1993 to 2004, Institut Teknologi Jiba had produced some 2,000 certified wiremen, and that most of them were employed in Singapore.

“The Government is talking about reducing the country’s dependency on foreign workers but our policies on skilled and semi-skilled workers are inadequate,” he said.

Sivakumar said instead of taking general degree programmes in colleges or universities and struggling to secure jobs after graduating, TVET would be a better choice.

He said those from TVET could enter creative and innovative fields and not necessarily focus on 3Ds (dangerous, dirty and difficult), as perceived by many, especially parents.

“There are many professionals produced at TVET and some of them can even earn a higher salary compared with university graduates.

“We still have a long way to go. In Germany, Japan, Taiwan and South Korea, more than 60% of workers are highly skilled,” said Sivakumar.