Datuk Seri Mustapa Mohamed
KUALA LUMPUR: Malaysia needs to create more small and medium enterprises (SMEs) that are competitive and resilient, as they are the vital ingredients for sustainable economic growth.
Minister of International Trade and Industry, Datuk Seri Mustapa Mohamed said the SMEs are also critical to nation-building, which gives the country more reason to move the SME agenda forward.
“Having a critical mass of a good pool of reliable SMEs or suppliers is the key to the success of large companies and multinational companies (MNCs), as together they provide the nation’s pulse,” he added.
Mustapa highlighted this at the recent Enterprise 50 (E50) 2012 Award event.
He said large companies and MNCs are very much dependent on SMEs as they all make up one big supply chain and without any one of them, the country would not have a robust and thriving economy that provides its endogenous growth.
Mustapa said SMEs constitute about 97 per cent of the business establishments in the country and contribute 32.5 per cent to gross domestic product (GDP).
SMEs also employed 59 per cent of the Malaysian workforce and are expected to increase this to 62 per cent by 2020.
The minister urged SMEs to focus on strengthening their products and services in order to penetrate overseas markets.
“We will continue to facilitate your entry, through the various free trade agreements (FTAs) which Malaysia is involved in at the bilateral and regional levels,” he said. — Bernama