| < Prev | Next > |
|---|
SPEECH BY YANG BERHORMAT DATUK LIEW VUI KEONG, DEPUTY MINISTER IN THE PRIME MINISTER’S DEPARTMENT, MALAYSIA ON THE OCCASION OF THE SMIAM MEMBERS’ NETWORKING NITE ON 9TH OCTOBER 2009
Salutations:
Mr Chua Tiam Wee
National President, SMI Association of Malaysia
Dato Dato,
Distinguish Guests
Members of the Press
Ladies and Gentlemen,
Good evening and thank you for inviting me to say a few words on this SMIAM Members’ Networking Nite 09.
Ladies and Gentlemen
I am pleased to see so many distinguished SME entrepreneurs gathered here this evening at this wonderful KL Tower venue where you can see the whole of Kuala Lumpur skyline.
While enjoying the magnificent view from the top of KL Tower, you can also make use of this occasion to enlarge your business circle and enhance your business opportunities by networking with the participants of this evening’s event.
You will be surprised how many new friends and business contacts you can make, if you just move around and introduce yourself to someone you have not met before. You will be amazed of the business opportunities that networking brings.
Yes, ladies and gentlemen. I am a strong believer and advocate of business networking, as networking opens up opportunities for people to: firstly get to know other like-minded people, secondly, to share their interests and the products they create or manufacture, and last but not least, to explore opportunities to do business together.
This is more so if such events are being organised by bodies that has been involved in the promotion and development of SMEs businesses for many years. The SMI Association is one such body which I feel is most appropriate to promote networking activities and I commend the Association for doing so this evening.
Ladies and Gentlemen
The Government indeed strongly supports activities that contribute positively to the development of SMEs, as it considers SMEs to be the engines of growth in the Malaysian economy.
The Government believes that a strong and healthy SME sector can and will contribute towards the attainment of various economic development goals that the government has set in its various 5-Year Malaysian Plans.
This is because SMEs embody the spirit of entrepreneurship, perseverance, creativity and innovation – values that are vital for the development and growth of a vibrant and robust economy.
As such, you can rest assured that the authorities will do its level best to ensure the SME industry is not unduly affected by the various economic and financial crises that is affecting the global economy.
As most of you are probably aware, the government, in the past two decades, has introduced various measures and incentives to promote the growth of SMEs. It has, through the financial system, provided many loan schemes to help finance the development of SMEs, including the set-up of Credit Guarantee Corporation and SME Bank, and through the Ministry of Trade and Industry (via Matrade), it has provided many trade incentives and marketing grants, and open many inroads such as organizing trade missions and trade exhibitions, for SMEs to introduce their products in the global market.
Our Bank Negara and Ministry of Finance constantly monitor the development of SMEs and has played an important role in ensuring SMEs received the financial support in the form of special loans and low interest rates.
However, the advent of the internet, globalization and free trade liberation throughout the world are bringing winds of economic change that threatened to destroy the traditional ways and practices of doing business.
The traditional SME way of doing business, using “Guan Xi” or friendship type of business relationship, can no longer applies to modern business. Intense competition brought about by low-cost producing countries has also hit the Malaysian business community, causing many businesses to fold or go under.
There is a need for the Malaysian economy to undergo a transformational change. And unless we change, we will see our SMEs being elbowed out of the world markets and our economy stagnating or even registering negative growth..
Ladies and Gentlemen
Our government is fully aware of the need to change our current middle-cost economy to one that is high value-added and high tech. Our Prime Minister Dato’ Seri Mohamad Najib bin Tun Abdul Razak has indicated recently that the Government will be announcing plans to transform the current middle cost economy to one that embraces the technology of tomorrow to enable us to move to a higher plane.
The country and SMEs need to focus on our core competencies and develop products and services that we are traditionally strong in, for example in palm oil, rubber gloves and halal goods, and we need to move into non-traditional markets such as the Middle East, Central Asia countries and even South American and African countries.
The government can do so much, but SMEs themselves must change their mindset and adopt new technologies, be innovative and be bold in making themselves known in the international markets by branding their products.
SMEs need to “think out of the box” if they are to compete effectively in the highly competitive global market and take back our share of the economic pie.
Ladies and Gentlemen.
You have just heard from SMI Association of Malaysia, National President, Mr Chua Tiam Wee that SMEs account for 99% of total businesses registered employs some 56% of the workforce, and contributes some 32% of the Gross Domestic Product of the country.
Although these are quick remarkable figures achieved by Malaysian SMEs, I sincerely believe that our SMEs can achieve even more in terms of the employment level and GDP growth, given the necessary incentives and government support.
I assure you that the Government will continue to listen to the problems faced by SMEs and will strive to find solutions that can contribute to the further development and growth of SMEs.
The 1Malaysia concept mooted by our Prime Minister is one such programme that seeks to bring equal opportunities for all Malaysian and should have the effect of encouraging SME growth. The abolition of the Foreign Investment Committee and liberalization of 27 financial restrictions are also moves to improve the business environment for SMEs and foreign investors.
Non-government organizations like SMI Association of Malaysia are most welcome to work with the government by providing feedback and introducing proposals that contribute to the success of SMEs in the country.
Ladies and Gentlemen.
The future for Malaysian SMEs is great, if we know how to seize the many opportunities that accompanies a crisis like the current global economic recession. As old and antiquated industries fade, new and more technologically advanced industries spring up to take their place.
One must be ever vigilant and alert to pick up such opportunities.
With that, I would like to end my speech and say thank you once again to the organizers for inviting me to this SMIAM Members Networking Nite.
Thank you.
