KUCHING: Small and Medium Enterprises (SMEs) play a very important role in the development of the national economy as well as the state’s economy, said International Trade and Industry, Industrial Terminal and Entrepreneur Development Assistant Minister Datuk Mohd Naroden Majais.
He said SMEs contributed 38.5 per cent to the national economy.
“For Sarawak, I believe the SMEs including the cottage industry contribute at least 30 per cent to the state’s economic development,” he said during the Sahabat Amanah Ikthiar Malaysia (AIM) 2019 programme in Kota Samarahan yesterday.
He said most of the SMEs in Sarawak were involved in the service sectors, mainly the food and beverages sector, transport, construction, manufacturing, processing of food from agricultural and fisheries products, sewing and homestay.
“SMEs also contributes to job opportunities — providing income to the workers, creating tourism opportunities and income of the respective state through co-operative tax and employee income tax,” he pointed out.
Naroden said the government encouraged the establishment of more SMEs besides strengthening their capabilities.
“The government, through a number of agencies, has organised many entrepreneurship programmes, training and financial assistance for start-ups besides providing business space and marketing promotions through expos and exhibitions,” he said.
On financial assistance, Naroden said this year, his ministry had, through various programmes, allocated RM21 million grants to 252 small entrepreneurs.
“Other agencies under the federal government and state government this year had provided RM282 million to 15,630 entrepreneurs from Sarawak,” he said.
Naroden added the world’s e-commerce market was growing at a fast pace, and in Malaysia, it was estimated to grow at 6 per cent yearly.
“In Sarawak, it is expected to grow at 1.1 per cent yearly because our e-commerce platform is new and the internet marketplace is not fully used, yet especially in the rural areas,” he said.
On efforts to increase e-commerce participants, Naroden added his ministry had organised several programmes and engaged 4,276 people.
“Therefore, those in business, be it big or small, must take advantage of the assistance provided by the government,” he advised.
