SMEs need strong human resource management system, says Subramaniam
Posted on February 10, 2012, Friday
KUALA LUMPUR: The human resource management system in small and medium enterprises (SMEs) in Malaysia must be changed and strengthened to improve the performance and productivity of SMEs.
Human Resources Minister Datuk Seri Dr S. Subramaniam said the performance and productivity of SMEs in the country were relatively low or made up only one third of the productivity of a large-scale companies.
He said according to the SME Annual Report 2010/2011, SMEs made up 99.2 per cent of companies registered in Malaysia, which contributed to 59 per cent of the country’s employment rate.
However, he said the SMEs’ contribution to the Gross National Product (GNP) was only 32 per cent.
“Although the number of SMEs is big and their employment rate is high, their productivity is just one third of the productivity of a large company,” he told reporters after opening the National Human Resources Centre here yesterday.
NHRC, which had been fully operational since August last year, was established with the aim of providing strategic human resources management supports to the SMEs.
So far, 384 SME operators had sought advice and guidance from the NHRC. — Bernama
