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The Small and Medium Industries Development Corporation (SMIDEC) was established on 2nd May 1996. The establishment of SMIDEC was in recognition of the need for a specialised agency to further promote the development of Small and Medium Industries (SMIs) in the manufacturing sector through the provision of advisory services, fiscal and financial assistance, infrastructure facilities, market access and other support programmes.
SMIDEC strives to create resilient and efficient Small and Medium Enterprises (SMEs), able to compete in a liberalised market environment. The Corporation will promote SMEs to be an integral part of the country's industrial development, capable of producing high value-added parts, components and finished products. SMIDEC will serve as the national focal point for the overall development of SMEs in the country.
Vision
To be the leading organisation in developing SMEs that contribute to the economic growth and enhancement of Malaysia’s competitiveness.
Mission
To transform SMEs to be vibrant, competitive and resilient and to be fully integrated into the manufacturing and services sectors.
Functions
1) To promote and coordinate the development of SMEs in Malaysia through:
• Promotional activities
• Establishment of regional offices
• Related studies
• Collation of information into a comprehensive database
2) To provide technical and advisory support services in collaboration with other related agencies involved in SMEs development through:
• SME Development Programmes
• SME Information and Advisory Centre
• SME Expert Advisory Panel (SEAP)
3) To forge industrial linkages between SMEs and large companies/ Multinational Corporations (MNCs) through the:
• Industrial Linkage Programme
• Global Supplier Programme
4) To implement, coordinate and monitor financial assistance schemes provided to SMEs through:
• Soft loans
• Grants
• Other financial assistance such as venture capital and equity financing
5) To collaborate with other local and international SME related agencies to develop SMEs through programmes such as:
• Participation in international and regional cooperation meetings and fora
• Skill enhancement programmes for employees of SMEs
• Attachment programmes for employees of SMEs
• Placement of foreign experts in selected SMEs
As the specialised agency on SME development, SMIDEC has various programmes aimed at developing Malaysian SMEs:
1) Industrial Linkage Programme (ILP)
2) Global Supplier Programme (GSP)
3) SME Expert Advisory Panel (SEAP)
4) Skills Upgrading Programme
5) Enterprise 50 Award Programme
Financial Assistance
SMIDEC also offers finance assistance to SMEs in the form of grants and loans. Some of the grants and loans offered by SMIDEC are:
1. Matching Grant for Business Start-Ups
Provides assistance to SMEs to start-up their businesses. The maximum grant allocated per company is RM100,000. Assistance is given in the form of a matching grant where 50% of the project cost is borne by the Government and the remainder is borne by the applicant. For enterprises in the manufacturing sector*, incorporated under the Registration of Business Ordinance 1956, assistance is given up to 80% of the approved cost.
2. Matching Grant for Product and Process Improvement
Provides assistance to SMEs to improve and upgrade existing product, product design and processes. The maximum grant allocated per company is RM500,000. Assistance is given in the form of a matching grant where 50% of the approved project cost is borne by the Government and the remainder is borne by the applicant.
3. Matching Grant for Certification and Quality Management Systems
Provides assistance to SMEs to obtain certification and quality management systems. The maximum grant allocated per company is RM250,000. Assistance is given in the form of a matching grant where 50% of the approved project cost is borne by the Government and the remainder is borne by the applicant.
4. Matching Grant for Enhancing Product Packaging
The Scheme provides assistance to SMEs to acquire and improve product packaging, design and labelling. Assistance is given in the form of a matching grant where 50% of the approved project cost is borne by the Government and the remainder by the applicant. For enterprises in the manufacturing sector*, incorporated under the Registration of Business Ordinance 1956, assistance is given up to 80% of the approved cost. The maximum grant allocated per company is RM200,000.
5. Matching Grant for Development and Promotion of Halal Products
This Scheme is introduced to encourage SMEs in the development of halal products (food and non-food). Assistance is given in the form of a matching grant where 50% of the approved project cost is borne by the Government and the remainder by the applicant. For enterprises in the manufacturing sector*, incorporated under the Registration of Business Ordinance 1956, assistance is given up to 80% of the approved cost. The maximum grant allocated per company is RM150,000.
6. Grant for RosettaNet
Provides assistance to implement the RosettaNet Standard in the form of a grant for local manufacturing, manufacturing related services as well as companies in the services sector. The implementation of the RosettaNet Standard will enable Malaysian companies to adopt efficient business processes with large companies as well as preparing them to embrace global Supply Chain Management (SCM) System. With the adoption of the RosettaNet standard, local companies would be able to conduct business electronically through common codes for sourcing of parts and components with their partners, suppliers and buyers apart from enjoying the benefits of reduced inventory costs, time to market and lower transaction costs.
The two available models in implementing the RosettaNet Standard are the RosettaNet Direct Model and the RosettaNet Application Service Provider (ASP) Model. Under the RosettaNet Direct Model, the assistance is given in the form of a partial grant, where 50% of the approved project cost is borne by the Government and the remainder by the applicant. The maximum grant allocated per company is RM100,000. Under the RosettaNet ASP Model, for SMEs, the assistance is given in the form of a partial grant, where 70% of the approved project cost is borne by the Government and the remainder by the applicant. The maximum grant allocated per company is RM30,000.
7. Grant – Loan Facility
This Facility is intended to provide assistance for SMEs in the form of grant (SMIDEC) and loan (SME Bank) for specific costs for business start-up, product and process improvements, certification and quality management systems, product packaging enhancements and the development and promotion of Halal products. This Facility is a joint facility between SMIDEC and SME Bank. Assistance is given in the form of grant (SMIDEC) and loan (SME Bank). SMIDEC will cover up to 50% of the approved project cost and 45% will be financed by SME Bank. SMEs are required to contribute the remaining 5%.
8. Grant for Enhancing Marketing Skills of SMEs
This scheme provides assistance for SMEs to improve their marketing strategies in both the domestic as well as export markets. Assistance is given in the form of a matching grant where 50% of the cost of training is borne by the Government and the remainder by the applicant. For enterprises in the manufacturing sector*, incorporated under the Registration of Business Ordinance 1956, assistance is given up to 80% of the approved cost.
9. Financial Assistance Scheme for SMEs in the Services Sectors
This scheme provides assistance to SMEs which facilitate them in starting up a business, in obtaining certification/s and quality management systems; in advertising and promotion; and in improving and upgrading of existing services and/or processes.
10. Soft Loan Scheme for Factory Relocation
Provides assistance for SMEs to open, relocate or expand their businesses through acquisition of factory/business premises. The minimum loan is RM50,000 while the total loan shall not exceed RM3 million per company. Interest rates are at 2% per annum on yearly rest.
11. Soft Loan for SMEs
The fund is aimed at promoting the development of SMEs in Malaysia. This soft loan scheme is to assist existing as well as new start-up companies in project, fixed assets and working capital financing. Minimum loan of RM50,000 and maximum of RM3 million. Interest rates are at 2% on yearly rest.
12. Soft Loan for ICT Adoption
This Scheme provides assistance in the form of soft loans for SMEs to use Information and Communication Technology (ICT) to improve competitiveness, efficiency and productivity. The eligible expenses include upgrading of engineering design capabilities and purchase of ERP and other similar software. The minimum loan is RM20,000 and the maximum loan is RM500,000.
* Assistance to the enterprise in the manufacturing sector will only be given until 31 May 2009.
SMIDEC TO ACT AS SME CENTRAL COORDINATING AGENCY
On 2 June 2008, the National SME Development Council (NSDC) announced the formation of the SME Central Coordinating Agency to further build on the successes that have been achieved and to take the SME sector to the next stage of development. This dedicated SME Agency represents a major structural enhancement in the SME development agenda and marks another milestone for SME development in Malaysia. SMIDEC will be transformed and repositioned to undertake this role. This new entity, that will be known as the SME Corporation Malaysia or SME Corp, will be a one-stop agency that undertakes the overall coordination of SME policy formulation and assessment of the SME development programmes across all sectors, covering 18 ministries and 60 agencies. The SME Corp will serve as the central point of information, reference and advisory services for SMEs for all sectors and will assume the role of Secretariat to the Council, a role which was previously undertaken by Bank Negara Malaysia. SME Corp will begin its operations on 2 January 2009 and will also establish state-level branches for more effective delivery of services.
For further information, please contact:
Small and Medium Industries Development Corporation (SMIDEC)
Level 20, West Wing, Menara MATRADE
Jalan Khidmat Usaha, Off Jalan Duta
50480 Kuala Lumpur, Malaysia
Tel: 603-6207 6000
Fax: 603-6201 6564
Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it
Website: www.smidec.gov.my
