SMEs to benefit from SCORE
Speaking recently at an event in Bintulu, Sarawak’s second Minister of Resource Planning and Environment, Datuk Amar Awang Tengah Ali Hassan said, “Small and Medium Enterprises (SMEs) will always be given priority by the state government as they are the backbone of the economic development of the state and nation.”
The Minister went on to say that in the first 2 months of 2014, Sarawak attracted RM6.8 billion (US$2 billion) in FDI compared to RM1.1 billion (US$400 million) in second placed Selangor.
With much of this investment coming from large, international firms, there will be major opportunities for SMEs working on their own or in clusters of collaborative firms who offer their services together to address any issues faced by these large, international firms.
In view of the fact that most of this investment is in SCORE, the Minister announced that the State government has set aside an initial 481 acres for SMEs and also micro enterprises that come under the SME heading.
Managed effectively, the development of the SME sector, as well as the micro enterprise sector will help in the marketing of SCORE around the world. But equally as important, this sector can help poor communities climb up the income scale.
Recoda is actively encouraging the development of SMEs in SCORE as their role in the development of the economy continues to increase. SMEs in Malaysia contributed 32% to the country’s gross domestic produce in 2012 and this is projected to rise to 41% by 2020.
Since 1994, three key government agencies – Malaysian Industrial Development Finance Malaysia Bhd (MIDF), SME Bank and SME Corp Malaysia – all under the Ministry of International Trade and Industry (Miti), have allocated more than RM23billion (US$7 billion) to help approximately 50,000 SMEs in both Semanunjung and Sarawak build their businesses.
But setting up an SME business in SCORE and working ones way through the myriad of documentation and regulations can be a daunting prospect for many and that is before starting any sales, marketing and other activities. Recoda is ready and able to help Sarawak SMEs, especially those in the maintenance, logistics, transportation, food and beverage, ICT and other sectors, take their first tentative steps to creating their own company.