Sabah Industrial Development Ministry focusing on resolving SME issues

KOTA KINABALU: Sabah Industrial Development Ministry (MID) is giving focus towards resolving the ongoing concern of entrepreneurs of small and medium enterprises (SMEs) here to ensure that they would remain competitive.

Minister Datuk Seri Dr. Joachim Gunsalam said it would be a win-win situation where it would also help in enhancing wealth creation and social wellbeing of the state, and the country in general.

The Deputy Chief Minister said this on Tuesday (Oct 18), where he witnessed the signing of a Memorandum of Understanding (MoU) for Pak Mund Laksa franchise, between EO Triton Success Sdn Bhd and Food BV Sdn Bhd here.

"As the backbone of the Malaysian economy, SMEs make up 98.5% of the total businesses or approximately 907,065.

"SMEs provide 66% of employment, contribute 37.1% of Malaysia’s GDP and 17.3% of total exports.

"Undoubtedly SMEs are contributing significantly to the wealth of the nation.

"Therefore recognising this segment as a key economic contributor, the state government and its agencies have been implementing various initiatives such as soft loans, matching grants, training, e-commerce assistance and technology acquisition funds," he said in a statement released on Tuesday.

Gunsalam said they also offer various assistance to SMEs to grow and develop their businesses not only limited to financial matters but non-financial ones like marketing, networking, distribution, research and development initiatives.

Meanwhile at the event, he was happy to note that Pak Mund Laksa which started in Sabah has targeted to open 150 stores in five years not only within the country, but also expanding into the Asean region.

The industry of local franchises, said Gunsalam, has reportedly been growing rapidly with 1,149 franchisers registered under the Franchise Act 1998 to date.

"Last year, the number of franchise outlets that had opened in the country rose by 47% year-on-year to 13,779, creating around 49,000 jobs.

"The government is also making efforts to assist in developing micro franchises to help the B40 income group," he added.