Malaysia SMEs get government support
By AvantiKumar
03 Nov 2008
Economists and business leaders in Malaysia say that the country is already showing signs of fallout from worsening macro-economic conditions.
However, many large tech companies are as active as ever in Malaysia, judging by the rising number of invitations I receive. It seems there are several forums and new announcements every day.
Things are a little different in the small and medium-sized enterprise (SME) end of things.
At a forum held recently in Kuala Lumpur, leaders from a range of companies as well as a government agency and industry association admitted the global slowdown has finally affected their plans. Some leaders of SMEs told me that they have postponed planned IT spending and wondered whether they would still be operating in 12 months.
Unused government support
Questions about what is currently available from the Malaysian government, both in the form of money and technology, took precedence.
A senior representative, Razali Hashim, from the government agency tasked with supporting SMEs —Small and Medium Industries Development Corporation (SMIDEC) —pointed out that substantial grants were available to assist in the modernisation of processes and that the application could be made online, with a turnaround time of just 14 days.
Many of the SME owners in the audience expressed surprise that incentives in the form of grants and soft loans were not only on offer but that the large majority of potentially qualifying firms in the country had not applied.
In addition, the Malaysian government announced in August 2008 a RM1.2 billion (US$341 million) special support package for the country’s SMEs, available through commercial banks.
Hashim also recommended that Malaysian companies check out the application criteria for grants at www.smidec.gov.my. From January 2009, the department will also be operating six one-stop support centres across the country.
He added: “It is vital that SMEs in the country check out and use the grants available to modernise their processes and become more efficient. The country’s economy would also benefit.”
AvantiKumar is the Malaysia correspondent for Fairfax tech brands and deputy editor of Computerworld Malaysia.
