SMEs expected to make up 37pc of economy next year

By Rupinder SinghPublished: 2009/09/07

SME Corp Malaysia (SME Corp) expects small and medium enterprises (SMEs) to make up 37 per cent of the economy next year, up from 32 per cent now.

It will continue to promote and develop SMEs in the manufacturing sector, but will focus more on those in the services sector, its chief executive officer Datuk Hafsah Hashim said.

"Although the growing momentum of the SMEs is slow due to the economic downturn, we have to train and re-train the SMEs to enhance their skills in their respective sectors," she told pressmen after the launch of Tesco Malaysia SME Hari Raya promotion in Petaling Jaya on Saturday.

In the first quarter of this year, 21.6 per cent of local SMEs had been severely affected by the global recession, she said.

"The data for the second quarter will be released soon," she added.

However, she said sentiment among SMEs, especially in the manufacturing sector, has started to improve in the second quarter.

Meanwhile, Tesco Stores (M) Sdn Bhd is keen to add more local SMEs to serve as its suppliers.

Commercial director Jamie Walker said SMEs formed a very important part of the company's chain, and so far, Tesco Malaysia has 1,272 suppliers, of which about 60 per cent are SMEs.

Last week, Tesco Malaysia launched the SME Brand @ Tesco promotion in conjunction with Ramadan to showcase more than 60 products by 20 local SME suppliers.