IMPACT ANALYSIS FRAMEWORK FOR SME DEVELOPMENT PROGRAMMES (IAFSP) Copyright © 2023 by SME Corporation Malaysia For reference purposes only. Not for reproduction without written permission. Copyright © 2023 by SME Corporation Malaysia All rights reserved. This report or any portion thereof may not be reproduced or used in any manner whatsoever without the expressed written permission of the Publisher except for the use of brief quotations in reviews. Printed in Malaysia. IMPACT ANALYSIS FRAMEWORK FOR SME DEVELOPMENT PROGRAMMES (IAFSP)
SME INTEGRATED PLAN OF ACTION (SMEIPA) 2023 3 CONTENT PAGE 01 03 02 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022 06 Box Article: New Governance Structure on Entrepreneurship and MSME Development Reporting 08 Overview 10 Entrepreneurship and MSME Development Programmes Implemented by Ministries and Agencies in 2022 37 Entrepreneurship and MSME Development Programmes Implemented in 2022 by Focus Area 51 Entrepreneurship and MSME Development Programmes Implemented in 2022 by Sector 57 Entrepreneurship and MSME Development Programmes Implemented in 2022 by Target Group IMPACT ANALYSIS FRAMEWORK FOR SME DEVELOPMENT PROGRAMMES (IAFSP) 60 Enhancing MSME Development through Outcome-based Monitoring 61 Impact Analysis Framework for SME Development Programmes (IASFP) 62 IASFP Evaluation 64 Performance and Achievement of Ministries and Agencies In 2022 114 Trend Analysis 2016-2022 REJUVENATING MSMEs IN 2023 118 Entrepreneurship and MSME Development Initiatives Planned for 2023 - Overview 121 Entrepreneurship and MSME Development Programmes by Focus Area Planned for 2023 127 Entrepreneurship and MSME Development Programmes Planned by Economic Sector and Target Group for 2023 129 Box Article: Gap Analysis on Entrepreneurship and MSME Development Programmes in 2023 CONTACT LIST 140 List of Ministries, Agencies and State Governments Contact Information 04
CHAPTER 1 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022
CHAPTER 1 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022 6 NEW GOVERNANCE STRUCTURE ON ENTREPRENEURSHIP AND MSME DEVELOPMENT REPORTING The National Entrepreneur and SME Development Council (NESDC) was established in 2004 as the primary policy-making body for the development of Micro, Small and Medium Enterprises (MSMEs) in Malaysia. Since its establishment, the NESDC has chartered a number of milestones, among others are policies and strategies implementation that serve as launchpads to boost MSMEs growth, strengthening private sector support in the development of MSMEs and also enhancing cooperation and coordination between Ministries and agencies to ensure effective implementation of action plans. Since its establishment, notable changes were made on the governance structure to further accelerate the National Entrepreneurship Agenda. Chart 1.1: New Governance Structure on Entrepreneurship and MSME Development Reporting National Entrepreneur and SME Development Council (NESDC) Chairman: YAB Prime Minister / YAB Deputy Prime Minister Majlis Pembangunan Keusahawanan Nasional (MPKN) Chairman: YB Minister of Entrepreneur and Cooperatives Development High Level Task Force on Entrepreneur and SME Development (HLTF) Chairman: Chief Secretary to the Government Jawatankuasa Teknikal Pembangunan Keusahawanan Nasional (JTPKN) Chairman: Secretary General of Ministry of Entrepreneur and Cooperatives Development Chart 1.xx: New Governance Structure on Entrepreneurship and MSME Development Reporting BOX ARTICLE ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022
7SME INTEGRATED PLAN OF ACTION (SMEIPA) 2023 The National Entrepreneur and SME Development Council (NESDC) assumes a comprehensive role in fostering the growth of entrepreneurs and MSMEs across all economic sectors, among others: Revitalise the role and function of Ministries and agencies in creating an enabling environment and ecosystem for MSMEs. Approve policies, strategies and action plans for comprehensive growth of MSMEs across all sectors of the economy. Ensure active collaboration and coordination among Ministries, agencies and private sector for effective execution of MSMEs development. Ensure greater private sector participation in supporting the overall development of MSMEs. 01 02 03 04 With the installation of a new governance structure, the membership of NESDC has been enhanced to streamline their responsibilities and maximise their capabilities. 02 03 04 01 Minister of Finance Minister of Rural and Regional Development Minister of Plantation and Commodities Minister of Agriculture and Food Security 06 07 08 05 Minister of Economy Minister of Local Government Development Minister of Investment, Trade and Industry Minister of Higher Education 09 Minister of Science, Technology and Innovation 11 12 13 10 Minister of Domestic Trade and Cost of Living Minister of Entrepreneur and Cooperatives Development Minister of Tourism, Arts and Culture Minister of Communications and Digital 15 16 17 14 Minister of Industrial Development and Entrepreneurship Sabah Minister of International Trade, Industry and Investment Sarawak Chief Secretary to the Government Governor of Bank Negara Malaysia Membership: YAB Prime Minister / YAB Deputy Prime Minister Chairman:
CHAPTER 1 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022 8 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022 ||| Overview The year 2022 continued to pose challenges for entrepreneurs and Micro, Small and Medium Enterprises (MSMEs) in the aftermath of the COVID-19 pandemic. Various business sectors were impacted, leading to further closures and disruptions in its operations due to cash flow constraints, increased cost of raw materials, manpower shortages as well as ongoing supply chain disruptions, further exacerbating the difficulties faced by MSMEs. Nonetheless, the Government remained proactive and committed in supporting our MSMEs. In 2022, a total of RM17.81 billion were spent to carry out 231 entrepreneurship and MSME development programmes, aimed at providing assistance to MSMEs and helping them mitigate the adverse effects of the crisis. A total of 807,556 MSMEs were benefitted from these initiatives. Of the total programmes implemented, 207 were carried out with Government fundings, totalling RM7.64 billion, while 24 programmes were implemented through private fundings, amounting to RM10.16 billion. A total of 771,233 MSMEs had utilised Government fundings, while the remaining 36,323 beneficiaries benefitted from private funds. These initiatives were crucial in supporting MSMEs, helping them withstand the challenges and rebuild their businesses. The Government’s continued drive towards entrepreneurship and MSME development programmes plays a vital role in fostering resilience and growth within the MSMEs ecosystem. ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022
9SME INTEGRATED PLAN OF ACTION (SMEIPA) 2023 Chart 1.2: Programmes by Funding Source and Business Stage in 2022 GOVERNMENT PRIVATE 42Programmes RM197.65 Mil 47,034 MSMEs 207 Programmes RM7,647.84 Mil 771,233 MSMEs START-UP 121 Programmes RM3,223.86 Mil 275,016 MSMEs GROWTH AND EXPANSION 44Programmes RM4,226.33 Mil 449,183 MSMEs START-UP, GROWTH AND EXPANSION TOTAL Program RM0.18 Mil 2,341 MSMEs mes 224Programmes RM10,167.71 Mil 36,323 MSMEs START-UP RM8,891.53 Mil 28,112 MSMEs GROWTH AND EXPANSION Programme 1RM1,276.00 Mil 5,870 MSMEs START-UP, GROWTH AND EXPANSION TOTAL Chart 1.1: Empowering Entrepreneurs and Boosting MSME Growth: Programmes by Funding Source and Business Stage in 2022 LEGEND Number of Programme Financial Expenditure (RM’mil) Number of Beneficiary LEGEND Number of Programme Financial Expenditure (RM’mil) Number of Beneficiary 21Programmes
CHAPTER 1 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022 10 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED BY MINISTRIES AND AGENCIES IN 2022 A total of 15 Ministries, six (6) sole agencies and 52 agencies were involved in implementing entrepreneurship and MSME development programmes in 2022. During the year, the Ministry of Entrepreneur and Cooperatives Development (KUSKOP) implemented the most programmes with 55 programmes and spent the highest amount of funds totalling RM7.68 billion. Meanwhile, Amanah Ikhtiar Malaysia (AIM) recorded the largest number of beneficiaries with 395,336 MSMEs for its sole programme. ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022
11SME INTEGRATED PLAN OF ACTION (SMEIPA) 2023 Table 1.1: Breakdown of Programmes Implemented by Ministries and Agencies in 2022 Table 1.0 Breakdown of programmes implemented by Ministries and Agencies in 2022 Ministry of Entrepreneur and Cooperatives Development (KUSKOP) Ministry of Rural and Regional Development (KKDW) Ministry of Investment, Trade and Industry (MITI) Sabah State Government (Sabah State) Ministry of Science, Technology and Innovation (MOSTI) Ministry of International Trade, Industry and Investment Sarawak (MINTRED) Ministry of Agriculture and Food Security (KPKM) Ministry of Plantation and Commodities (KPK) Ministry of Communications and Digital (KKD) Ministry of Tourism, Arts and Culture (MOTAC) Credit Guarantee Corporation Malaysia Berhad (CGC) Ministry of Youth and Sports (KBS) Perbadanan Usahawan Nasional Berhad (PUNB) Unit Peneraju Agenda Bumiputera (TERAJU) Ministry of Human Resources (MOHR) Federal Land Development Authority (FELDA) Amanah Ikhtiar Malaysia (AIM) Bank Negara Malaysia (BNM) Ministry of Local Government Development (KPKT) Ministry of Women, Family and Community Development (KPWKM) Ministry of Higher Education (MOHE) 55 7,682.85 213,289 37 1,261.52 23,906 33 539.76 37,224 19 21.48 3,513 18 218.51 2,723 18 63.05 25,647 13 209.35 15,959 7 4.85 953 6 6.58 40,750 5 8.39 20,972 4 3,550.00 13,159 3 0.75 3,333 2 203.65 520 2 5.00 250 2 3.20 313 2 0.10 1,756 1 2,742.87 395,336 1 1,276.00 5,870 1 15.83 1,734 1 1.00 336 1 0.80 13 TOTAL 231 17,815.55 807,556 Ministry / Agency Number of Programme Financial Expenditure (RM’ mil) Number of Beneficiary Notes: • Ministry of Rural and Regional Development (KKDW) is known as Ministry of Rural Development (KPLB) before. • Ministry of Agriculture and Food Security (KPKM) is known as Ministry of Agriculture and Food Industry (MAFI) before. • Ministry of Communications and Digital (KKD) is known as Ministry of Communications and Multimedia (K-KOMM) before. • Ministry of Entrepreneur and Cooperatives Development (KUSKOP) is known as Ministry of Entrepreneur Development and Cooperatives (KUSKOP) before. • Ministry of Investment, Trade and Industry (MITI) is known as Ministry of International Trade and ndustry (MITI) before. • Ministry of Plantation and Commodities (KPK) is known as Ministry of Plantation Industries and Commodities (MPIC) before. • Ministry of Local Government Development (KPKT) is known as Ministry of Housing and Local Government (KPKT) before.
CHAPTER 1 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022 12 ||| Ministry of Entrepreneur and Cooperatives Development (KUSKOP) KUSKOP is the key driver of entrepreneurship development in the country, dedicated to creating a supportive and comprehensive entrepreneurial ecosystem. In 2022, KUSKOP implemented 55 programmes amounting to RM7.68 billion, benefitting a total of 213,289 MSMEs through its various agencies and internal divisions as indicated in Table 1.2. Table 1.2: Programmes Implemented by KUSKOP and Agencies in 2022 Implementer / Agency Number of Programme Financial Expenditure (RM’ million) Number of Beneficiary Institut Keusahawanan Negara (INSKEN) 9 9.20 14,221 UDA Holdings Berhad (UDA) 9 7.11 990 Bahagian Pembangunan Ekosistem Keusahawanan (BPES), KUSKOP 8 2.76 7,715 SME Corporation Malaysia (SME Corp.) 7 127.19 4,562 Bahagian Pembangunan Francais & Vendor (BPFV), KUSKOP 7 19.53 536 Small Medium Enterprise Development Bank Malaysia Berhad (SME Bank) 5 4,599.00 2,029 Professional Training and Education for Growing Entrepreneurs (PROTÉGÉ) 5 4.97 10,472 TEKUN Nasional (TEKUN) 2 1,110.00 73,298 Bank Kerjasama Rakyat Malaysia Berhad (Bank Rakyat) 1 1,753.00 5,783 Perbadanan Nasional Berhad (PERNAS) 1 49.62 276 Business Licensing Electronic Support System (BLESS) 1 0.48 93,407 TOTAL 55 7,682.85 213,289 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022
13SME INTEGRATED PLAN OF ACTION (SMEIPA) 2023 During the year, INSKEN and UDA Holdings Berhad implemented the most programmes, with nine (9) programmes each. Programmes by INSKEN had assisted 14,221 MSMEs, while UDA helped 990 beneficiaries. Furthermore, SME Bank received the highest funding of RM4.59 billion for its five (5) programmes, which benefitted a total of 2,029 MSMEs. Chart 1.3: Top Five (5) Programmes for KUSKOP by Expenditure in 2022 SME Bank TEKUN Bank Rakyat SME Corp. PERNAS SME financing of RM4.55 billion Financing to SMEs totalling RM1.75 billion TEKUN Financing amounting to RM1.10 billion SME Revitalisation Financing (SMERF) totalling RM50.00 million PERNAS Financing Scheme with a total of RM49.62 million
CHAPTER 1 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022 14 ||| Ministry of Rural and Regional Development (KKDW) KKDW is responsible in overseeing and improving the rural and regional development through the implementation of 37 programmes in 2022 with total expenditure of RM1.26 billion which supported 23,906 MSMEs, as shown in Table 1.3 below. Table 1.3: Programmes Implemented by KKDW and Agencies in 2022 Implementer / Agency Number of Programme Financial Expenditure (RM’ million) Number of Beneficiary Majlis Amanah Rakyat (MARA) 7 113.86 10,119 Lembaga Kemajuan Wilayah Kedah (KEDA) 6 11.80 391 Bahagian Pembangunan Usahawan Desa (BPUD), KKDW 6 10.56 2,166 Lembaga Kemajuan Terengganu Tengah (KETENGAH) 4 1.74 50 Lembaga Kemajuan Wilayah Pulau Pinang (PERDA) 3 1.53 700 Jabatan Kemajuan Masyarakat (KEMAS) 2 1,080.42 3,034 Bahagian Pembangunan Ekonomi Komuniti (BPEK), KKDW 2 13.00 4,285 Lembaga Kemajuan Kelantan Selatan (KESEDAR) 2 1.46 55 Jabatan Kemajuan Orang Asli (JAKOA) 2 0.74 394 Rubber Industry Smallholders Development Authority (RISDA) 1 24.32 2,630 Federal Land Consolidation and Rehabilitation Authority (FELCRA Berhad) 1 2.00 70 Lembaga Kemajuan Johor Tenggara (KEJORA) 1 0.10 12 TOTAL 37 1,261.52 23,906 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022
15SME INTEGRATED PLAN OF ACTION (SMEIPA) 2023 MARA conducted seven (7) programmes, the most amongst KKDW’s agencies, while KEMAS recorded the highest spending amounting to RM1.08 billion for its two (2) programmes, assisting a total of 3,034 beneficiaries. Chart 1.4: Top Five (5) Programmes for KKDW by Expenditure in 2022 Chart 1.3: Top five (5) programmes for KKDW by expenditure in 2022 KEMAS MARA RISDA MARA BPEK, KKDW Program Pembangunan Usahawan amounting to RM1.08 billion MARA Business Financing programme amounting to RM68.55 million Aktiviti Ekonomi Tambahan (AET) with an expenditure of RM24.32 million MARA Young Entrepreneur Programme with RM14.56 million Program Desa Lestari totalling RM10.00 million
CHAPTER 1 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022 16 ||| Ministry of Investment, Trade and Industry (MITI) MITI, which is responsible for planning, formulating and implementing policies related to industrial development, international trade and investment has implemented 33 programmes across its seven (7) agencies in 2022. These programmes have incurred total expenditures amounting to RM539.76 million. As a result, a significant number of 37,224 MSMEs have directly benefitted from these initiatives. Table 1.4: Programmes Implemented by MITI and Agencies in 2022 Implementer / Agency Number of Programme Financial Expenditure (RM’ million) Number of Beneficiary Malaysian Industrial Development Finance Berhad (MIDF) 7 457.14 177 Malaysia External Trade Development Corporation (MATRADE) 7 14.98 12,584 Halal Development Corporation Berhad (HDC) 5 8.00 1,101 Malaysia Productivity Corporation (MPC) 5 6.02 18,668 Malaysian Investment Development Authority (MIDA) 3 34.26 2,845 SIRIM Berhad (SIRIM) 3 18.07 1,149 Malaysia Automotive, Robotics and loT Institute (MARii) 3 1.30 700 TOTAL 33 539.76 37,224 In 2022, both MIDF and MATRADE carried out seven (7) programmes each, the most for all MITI’s agencies. Furthermore, MIDF recorded the highest expenditure of RM457.14 million, with 177 MSMEs benefiting from the initiative. While MPC had the most beneficiaries with 18,668. ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022
17SME INTEGRATED PLAN OF ACTION (SMEIPA) 2023 Chart 1.5: Top Five (5) Programmes for MITI by Expenditure in 2022 Chart 1.4: Top five (5) programmes for MITI by Expenditure in 2022 MIDF MIDF MIDF MIDA SIRIM Soft Loan Scheme for Automation and Modernisation (SLSAM) amounting to RM274.40 million Soft Loan Scheme for SME (SLSME) totalling RM98.50 million Soft Loan Scheme for Bumiputera Automotive Entrepreneur (SLBAE) with RM42.10 million Industry 4WRD Intervention Fund amounting to RM33.75 million Calibration and Measurement Services with RM15.05 million
CHAPTER 1 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022 18 ||| Sabah State Government (Sabah State) Sabah State Government is actively involved in planning, developing, and implementing various strategies to foster entrepreneurship and empower entrepreneurs in the state. In the year 2022, a total of 19 programmes were executed, with an amount of RM21.48 million, allowing it to aid 3,513 MSMEs within the state. Table 1.5: Programmes Implemented by Sabah State Government and Agencies in 2022 Implementer / Agency Number of Programme Financial Expenditure (RM’ million) Number of Beneficiary Perbadanan Pembangunan Ekonomi Sabah (SEDCO) 9 7.79 854 Ministry of Rural Development Sabah (KPLBS) 5 2.09 487 Jabatan Pembangunan Perindustrian & Penyelidikan (JPPP) 2 11.10 1,344 Ministry of Industrial Development & Entrepreneurship (MIDE) 2 - 350 Jabatan Hal Ehwal Wanita Sabah (JHEWA) 1 0.50 478 TOTAL 19 21.48 3,513 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022
19SME INTEGRATED PLAN OF ACTION (SMEIPA) 2023 Amongst the agencies, SEDCO had the highest number of programmes implemented throughout the year with nine (9) programmes. Meanwhile, JPPP had the highest expenditure and most beneficiaries, utilising an amount of RM11.10 million across two (2) of its programmes, which benefitted 1,344 recipients. Chart 1.6: Top Five (5) Programmes Implemented by Sabah State by Expenditure in 2022 Chart 1.5: Top five (5) programmes implemented by Sabah State Government by Expenditure in 2022 JPPP SEDCO SEDCO KPLBS SEDCO Bantuan IKS (BAIKS), with RM10.95 million Development of Business Premises in Taman Industri Kecil dan Sederhana SEDCO, totalling RM1.67 million Development of Business Premises in Kg Paris, Kinabatangan with an amount of RM1.38 million Pembangunan Usahawan Desa (PUD) at RM1.00 million Development of Business Premises in Kedai Sook Fasa V with RM1.00 million
CHAPTER 1 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022 20 ||| Ministry of Science, Technology and Innovation (MOSTI) MOSTI is the ministry that drives a high-tech nation through Science, Technology, Innovation and Economy (STIE), for societal well-being and sustainable development. For the year under review, MOSTI conducted 18 programmes, utiilsing a total allocation of RM218.51 million, of which 2,723 MSMEs have benefitted from it. Table 1.6: Programmes Implemented by MOSTI and Agencies in 2022 Implementer / Agency Number of Programme Financial Expenditure (RM’ million) Number of Beneficiary Malaysian Research Accelerator for Technology & Innovation (MRANTI) 5 2.19 2,586 NanoMalaysia Berhad (NMB) 4 17.00 10 Malaysia Debt Ventures Berhad (MDV) 3 33.80 12 Cradle Fund Sdn Bhd (CRADLE) 3 12.50 55 Fund Division, MOSTI 1 144.39 54 Malaysian Technology Development Corporation (MTDC) 1 8.63 3 Kumpulan Modal Perdana Sdn Bhd (KMP) 1 - 3 TOTAL 18 218.51 2,723 MRANTI, which is a convergence of Technology Park Malaysia (TPM) Corporation Sdn. Bhd. and the Malaysian Global Innovation and Creativity Centre (MaGIC), is Malaysia’s central research commercialisation agency that fast-tracks the development of technology innovations from ideas to impact. MRANTI conducted five (5) programmes, the most for agencies under MOSTI as well as benefitting the most MSMEs, totalling at 2,586. Meanwhile, Fund Division, an internal division of MOSTI recorded the highest expenditure of RM144.39 million for its sole programme. ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022
SME INTEGRATED PLAN OF ACTION (SMEIPA) 2023 Chart 1.7: Top Five (5) Programmes implemented by MOSTI by Expenditure in 2022 FUND DIVISION, MOSTI MDV CRADLE NMB MDV Research and Development fund at RM144.39 million Technology Venture Financing Microfund Guarantee Scheme (MDV-TECHVFMG) amounting to RM20.00 million RM9.00 million for CIP SPRINT Programme Liquidity Financing for Technology Startups (LIFTS) with RM8.80 million Program Pengkomersialan Nanoteknologi REVOLUTIoNT, National Graphene Action Plan (Graphenovation) and iNanovation totalling RM9.00 million 21
CHAPTER 1 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022 22 ||| Ministry of International Trade, Industry and Investment Sarawak (MINTRED) MINTRED is committed to drive industrial and entrepreneurial growth throughout the state, by coordinating, facilitating and supporting various initiatives. Through its concerted efforts, MINTRED implemented 18 programmes alongside its sole agency, whereby 25,647 MSMEs in the state had benefitted. A total of RM63.05 million was spent for this purpose. Table 1.7: Programmes Implemented by MINTRED and its Sole Agency in 2022 Implementer / Agency Number of Programme Financial Expenditure (RM’ million) Number of Beneficiary Ministry of International Trade, Industry and Investment Sarawak (MINTRED) 17 59.05 25,632 Sarawak Economic Development Corporation (SEDC) 1 4.00 15 TOTAL 18 63.05 25,647 For the year under review, MINTRED itself ran 17 programmes, which provided assistance to 25,632 beneficiaries in the state, with an expenditure of RM59.05 million. While its sole agency, SEDC implemented its single programme and incurred an expenditure of RM4.00 million, which benefitted 15 MSMEs. ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022
23SME INTEGRATED PLAN OF ACTION (SMEIPA) 2023 Chart 1.8: Top Five (5) Programmes Implemented by MINTRED Sarawak by Expenditure in 2022 Chart 1.7: Top five (5) programmes implemented by MINTRED Sarawak by Expenditure in 2022 MINTRED MINTRED MINTRED MINTRED SEDC Sarawak Micro Credit Scheme (SMCS) totalling RM15.00 million Sibu Industrial Park with a total of RM8.50 million Samalaju SME Cluster Phase 1 & 2 at RM7.53 million Sematan Industrial Park which amounted to RM5.12 million Small and Medium Scale Industry Financing Scheme (SPIKS) with RM4.00 million
CHAPTER 1 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022 24 ||| Ministry of Agriculture and Food Security (KPKM) KPKM formulates, plans, and executes policies and strategies for the agriculture and agro-based industries. During the year, KPKM conducted 13 programmes with an expenditure of RM209.35 million, which aided 15,959 beneficiaries. Table 1.8: Programmes Implemented by KPKM and Agencies in 2022 Implementer / Agency Number of Programme Financial Expenditure (RM’ million) Number of Beneficiary Bahagian Industri Makanan dan Asas Tani (BIMAT), KPKM 4 30.50 7,226 Lembaga Kemajuan Ikan Malaysia (LKIM) 3 6.25 255 Lembaga Pertubuhan Peladang (LPP) 2 8.00 286 Bank Pertanian Malaysia Berhad (Agrobank) 1 156.30 357 Malaysian Bioeconomy Development Corporation Sdn Bhd (Bioeconomy Corp.) 1 5.22 3 Federal Agricultural Marketing Authority (FAMA) 1 2.40 55 Malaysian Agricultural Research and Development Institute (MARDI) 1 0.68 7,777 TOTAL 13 209.35 15,959 BIMAT, an internal division of KPKM implemented four (4) programmes in 2022, the most of the seven (7) participating agencies. Meanwhile, Agrobank recorded the highest spending for its sole programme at RM156.30 million. ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022
25SME INTEGRATED PLAN OF ACTION (SMEIPA) 2023 Chart 1.9: Top Five (5) Programmes Implemented by KPKM by Expenditure in 2022 Agrobank BIMAT, KPKM BIMAT, KPKM BIOECONOMY CORP. LKIM Dana Pembiayaan Agromakanan (DPA) amounting to RM156.30 million Program Agropreneur Muda 2.0 with RM14.00 million Program Pembangunan Usahawan totalling RM10.50 million Agro-Based Venture Fund (AGVF) with an expenditure of RM5.22 million Program Pemerkasaan Usahawan Peladang (RISE UP) at RM5.00 million BIOECONOMY CORP.
CHAPTER 1 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022 26 ||| Ministry of Plantation and Commodities (KPK) KPK which formulates policies and strategies for the overall development of the plantation commodity sector has conducted seven (7) programmes in 2022, amounting to RM4.85 million that benefitted 953 MSME recipients. Table 1.9: Programmes Implemented by KPK and Agencies in 2022 Implementer / Agency Number of Programme Financial Expenditure (RM’ million) Number of Beneficiary Malaysian Timber Industry Board (MTIB) 2 2.63 113 National Kenaf and Tobacco Board (LKTN) 2 0.63 60 Malaysian Pepper Board (MPB) 2 0.42 414 Malaysian Cocoa Board (MCB) 1 1.17 366 TOTAL 7 4.85 953 MTIB, LKTN and MPB implemented the same amount of programme with two (2) each. While MTIB utilised the largest expenditure of RM2.63 million, followed by MCB at RM1.17 million. MPB also recorded the highest number of beneficiaries totalling 414 MSMEs. ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022
27SME INTEGRATED PLAN OF ACTION (SMEIPA) 2023 Chart 1.10: Top Three (3) Programmes Implemented by KPK by Expenditure in 2022 Chart 1.9: Top three (3) programmes implemented by MPIC by Expenditure in 2022 MTIB MCB LKTN Program Promosi Pasaran Tempatan dan Antarabangsa amounting to RM2.45 million Pembangunan Usahawan Coklat with RM1.17 million Program Tanaman Baru Kenaf totalling RM0.50 million
CHAPTER 1 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022 28 ||| Ministry of Communications and Digital (KKD) KKD is mandated to enhance telecommunications and communication networks and infrastructure, as well as promote the growth of the digital economy. The ministry has implemented six (6) programmes in 2022, alongside its two (2) agencies. The total expenditure for these programmes totalled at RM6.58 million and has benefitted 40,750 MSMEs. Table 1.10: Programmes Implemented by KKD and Agencies in 2022 Implementer / Agency Number of Programme Financial Expenditure (RM’ million) Number of Beneficiary Malaysia Digital Economy Corporation (MDEC) Sdn Bhd 4 6.40 32,502 MYNIC Berhad (MYNIC) 2 0.18 8,248 TOTAL 6 6.58 40,750 For 2022, MDEC ran four (4) programmes and recorded the highest expenditure of RM6.40 million, while MYNIC implemented two (2) programmes with a total expenditure of RM0.18 million. ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022
29SME INTEGRATED PLAN OF ACTION (SMEIPA) 2023 Chart 1.11: Top three (3) programmes implemented by KKD by Expenditure in 2022 Chart 1.10: Top three (3) programmes implemented by KKD by Expenditure in 2022 MDEC MDEC MDEC Program Transformasi Pendigitalan PMKS totalling RM2.00 million Dana Teknologi Inovasi Untuk Globalisasi (TIG) with RM2.00 million Program Penerimagunaan e-Dagang at RM1.90 million
CHAPTER 1 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022 30 TRAVEL BACKGROUND ||| Ministry of Tourism, Arts and Culture (MOTAC) MOTAC which leads the tourism industry ecosystem as well as promotes cultural inclusiveness, undertook a total of five (5) programmes. A total expenditure of RM8.39 million was utilised, empowering 20,972 MSMEs in the tourism and culture industries. ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022
31SME INTEGRATED PLAN OF ACTION (SMEIPA) 2023 Table 1.11: Programmes Implemented by MOTAC and Agency in 2022 Implementer / Agency Number of Programme Financial Expenditure (RM’ million) Number of Beneficiary Malaysian Handicraft Development Corporation (Malaysian Handicraft) 4 8.29 20,692 Ministry of Tourism, Arts and Culture (MOTAC) 1 0.10 280 TOTAL 5 8.39 20,972 The most programmes were implemented by Malaysian Handicraft with four (4) programmes. A total of 20,692 MSMEs benefitted from this initiative, with a total expenditure of RM8.29 million. Meanwhile, MOTAC’s only programme namely Homestay Entrepreneur Training and Skills Enhancement, assisted 280 beneficiaries. Chart 1.12: Top Three (3) Programmes Implemented by MOTAC by Expenditure in 2022 Chart 1.11: Top three (3) programmes implemented by MOTAC by Expenditure in 2022 Program Pengkomersialan Kraf - Pemasaran Kraf Secara Fizikal amounting to RM5.36 million Program Pengkomersialan Kraf - Pemasaran Kraf Secara Digital with RM1.24 million Program Pembangunan Kemahiran Komuniti Kraf which totalled RM1.00 million MALAYSIAN HANDICRAFT MALAYSIAN HANDICRAFT MALAYSIAN HANDICRAFT
CHAPTER 1 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022 32 ||| Credit Guarantee Corporation Malaysia Berhad (CGC) CGC assists MSMEs facing challenges in obtaining credit facilities due to insufficient collateral or track record by providing guarantee cover on these facilities, enabling MSMEs to obtain the necessary financing from financial institutions. In 2022, CGC implemented four (4) programmes, providing support to 13,159 beneficiaries, with a total spend of RM3.55 billion. Chart 1.13: Top Three (3) Programmes Implemented by CGC by Expenditure in 2022 Financing Schemes including BizMula-i, BizWanita-i, BizBina-i, BizMikro with an expenditure of RM94.00 million Guarantee Schemes including Portfolio Guarantee / Wholesale Guarantee, BizJamin, BizJamin Bumi, BizMaju, BizSME, Flexi Guarantee Scheme and Franchise Financing Scheme totalling RM2.42 billion BNM Fund for SMEs including Targeted Relief & Recovery Facility (TRRF) at RM946.00 million ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022
33SME INTEGRATED PLAN OF ACTION (SMEIPA) 2023 ||| Ministry of Youth and Sports (KBS) The Ministry of Youth and Sports which aims at forming a more prosperous and united country through youth development and sports culture also conducted various MSME development programmes. A total of three (3) programmes were implemented in 2022 by the National Youth and Sports Department (JBSN) and has assisted 3,333 MSMEs with an expenditure of RM0.75 million. Social Entrepreneurship for Rural Youth (SERY) had the highest expenditure among the three programmes implemented with RM0.40 million. While myPRENEUR@APBMBG had the highest number of beneficiaries totalling 3,115 MSMEs. ||| Perbadanan Usahawan Nasional Berhad (PUNB) PUNB is entrusted to empower Bumiputera entrepreneurs with opportunities to grow their businesses through the provision of financial and business support. For the year in review, two (2) programmes were carried out by PUNB itself. A total of RM203.65 million was spent for these programmes which assisted 520 beneficiaries. Among the two (2) programmes by PUNB, Program Pembiayaan Keusahawan PUNB utilised the biggest expenditure amounting to RM201.41 million. The programme also had the highest number of beneficiaries at 396 MSMEs. ||| Unit Peneraju Agenda Bumiputra (TERAJU) TERAJU, an agency tasked in coordinating and advancing the Bumiputera economic development agenda implemented two (2) programmes in 2022, fostering growth for 250 MSMEs through RM5.00 million in funding.
CHAPTER 1 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022 34 Both Dana Pembangunan Usahawan Bumiputra Sarawak – SMART Community and Dana Pembangunan Usahawan Bumiputera Sabah - Global Processing Entrepreneur Programme Centre (GLOPEC) spent RM2.50 million each. A total of 233 beneficiaries were reported under Dana Pembangunan Usahawan Bumiputra Sarawak – SMART Community. ||| Ministry of Human Resources (MOHR) The Ministry of Human Resources, known as MOHR is mandated to oversee the well-being of the Malaysian workforce, ensure a conducive and secure working environment, labour affairs, skill development of the workforce, occupational safety and health matters, trade unions, industrial relations, industrial court, disseminating labour market information and analysis as well as social security. A total of 313 MSMEs benefitted from two (2) entrepreneurship and MSME development programmes that MOHR implemented through HRD Corp., its sole agency, with an expenditure of RM3.20 million. SME Skills Programme by HRD Corp. recorded the highest expenditure for 2022 amounting to RM2.43 million while RiSE4WRD Programme spent RM0.77 million. ||| Federal Land Development Authority (FELDA) FELDA conducts land development projects and implements economic, social, agricultural, settlement, industrial, and commercial developments within its authorised territories. It focuses on modernising the agricultural sector and supports agricultural production, processing, and marketing activities. FELDA also assists, guides, advises, manages, and coordinates social, settlement, industrial, and commercial activities within its territories to foster holistic development and improve the overall well-being of the communities it serves. For 2022, FELDA ran two (2) programmes with a total spending of RM0.10 million which benefitted 1,756 MSMEs within its industry. ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022
35SME INTEGRATED PLAN OF ACTION (SMEIPA) 2023 Latihan Memperkasa Usahawan assisted 1,738 beneficiaries through the utilisation of RM0.10 million allocation. ||| Amanah Ikhtiar Malaysia (AIM) Amanah Ikhtiar Malaysia (AIM) is an agency set up with the aim of reducing poverty among low-income households in Malaysia, by offering financial facilities, guidance and continuous training to entrepreneurs from disadvantaged families. AIM spent RM2.74 billion to assist 395,336 low-income households, through the implementation of its sole programme namely Ikhtiar Financing Scheme. ||| Bank Negara Malaysia (BNM) Among the roles of Bank Negara Malaysia (BNM) is to creates a conducive entrepreneurial environment for sustainable economic growth. A total of RM1.27 billion was spent on BNM’s Fund for SMEs. This sole programme under BNM has assisted a total of 5,870 beneficiaries in 2022. ||| Ministry of Local Government Development (KPKT) KPKT that oversees matters related to local government, housing, as well as the well-being of urban dwellers has implemented Program Pemerkasaan Ekonomi Komuniti Bandar through its internal division namely Bahagian Kesejahteraan Komuniti in 2022. A total of RM15.83 million was spent in providing assistance to 1,734 MSMEs.
CHAPTER 1 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022 36 ||| Ministry of Women, Family and Community Development (KPWKM) KPWKM is entrusted to increase the participation and enhance the role of women, family and society as contributors and beneficiaries of development. In 2022, the Ministry conducted 2 Years Exit Programme (2YEP) through the efforts of the Department of Social Welfare (JKM) whereby it positively impacted 336 MSMEs with a total expenditure of RM1.00 million. ||| Ministry of Higher Education (MOHE) MOHE was mandated to sustain a quality higher education ecosystem through the development of potential individuals. The Public-Private Research Network (PPRN) Programmes was the only programme implemented in 2022 with total expenditure of RM0.80 million, assisting 13 beneficiaries. ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022
37SME INTEGRATED PLAN OF ACTION (SMEIPA) 2023 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022 BY FOCUS AREA In 2022, the entrepreneurship and MSME development programmes remained focused on critical areas of Access to Financing, Human Capital Development, Market Access, Innovation and Technology Adoption as well as Infrastructure. Of the five (5) focus area, Human Capital Development had the most number of programmes, amounting to 95 programmes, followed by Access to Financing and Market Access with 90 programmes and 57 programmes, respectively. Access to Financing also recorded the highest expenditure totalling RM16.49 billion as well as the highest number of beneficiaries at 540,248 while Human Capital Development utilised RM3.88 billion to run its programmes, supporting 213,539 MSMEs in their endeavours. Table 1.12: Entrepreneurship and MSME Development Programmes in 2022 by Focus Area Focus Area Number of Programme Financial Expenditure (RM’ million) Number of Beneficiary Human Capital Development 95 3,882.10 213,539 Access to Financing 90 16,493.58 540,248 Market Access 57 116.36 72,685 Innovation and Technology Adoption 45 575.18 63,935 Infrastructure 41 100.81 107,920 Note: Similar programmes may cater for multiple focus area
CHAPTER 1 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022 38 ||| Human Capital Development Human Capital Development programmes aims to enhance MSMEs’ knowledge, skills and abilities through training, education and professional development initiatives, enabling the acquisition of new competencies, expanding capabilities and adapting to the evolving demands in the workforce. It not only improves employability and career prospects but fosters the nation’s economic growth, drives productivity and innovation, entrepreneurship as well as sustainable development. For 2022, a total of 95 programmes were implemented across 14 Ministries and four (4) agencies, utilising an expenditure of RM3.88 billion, higher than the previous year of RM2.48 billion. In addition, a total of 213,539 MSMEs benefitted from these programmes. Under this focus area, KUSKOP had the most programmes with 26, followed by KKDW and MITI with 17 and 14 programmes, respectively. BNM recorded the highest spending of RM1.27 billion for its sole programme, followed by KUSKOP with RM1.13 billion. Meanwhile, the most significant number of beneficiaries totalling 102,917 was also recorded under KUSKOP. ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022
39SME INTEGRATED PLAN OF ACTION (SMEIPA) 2023 Table 1.13: Human Capital Development Programmes Implemented by Ministries and Agencies in 2022 HUMAN CAPITAL DEVELOPMENT Ministry / Agency Number of Programme Financial Expenditure (RM’ million) Number of Beneficiary Ministry of Entrepreneur and Cooperatives Development (KUSKOP) 26 1,137.85 102,917 Ministry of Rural and Regional Development (KKDW) 17 1,116.10 17,410 Ministry of Investment, Trade and Industry (MITI) 14 67.26 32,157 Sabah State Government (Sabah State) 8 12.14 2,824 Ministry of Agriculture and Food Security (KPKM) 6 37.18 15,092 Ministry of Plantation and Commodities (KPK) 4 1.77 788 Ministry of Science, Technology and Innovation (MOSTI) 3 2.19 71 Ministry of Youth and Sports (KBS) 3 0.75 3,333 Perbadanan Usahawan Nasional Berhad (PUNB) 2 203.65 520 Unit Peneraju Agenda Bumiputera (TERAJU) 2 5.00 250 Ministry of Human Resources (MOHR) 2 3.20 313 Ministry of Tourism, Arts and Culture (MOTAC) 2 1.10 17,020 Bank Negara Malaysia (BNM) 1 1,276.00 5,870 Ministry of Local Government Development (KPKT) 1 15.83 1,734 Ministry of Women, Family and Community Development (KPWKM) 1 1.00 336 Ministry of International Trade, Industry and Investment Sarawak (MINTRED) 1 0.99 5,038 Federal Land Development Authority (FELDA) 1 0.10 1,738 Ministry of Communications and Digital (KKD) 1 - 6,128 TOTAL 95 3,882.10 213,539
CHAPTER 1 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022 40 The Government’s aspiration in creating a nation that possesses and enculturates entrepreneurship was reflected in the number of entrepreneurship development programmes implemented in the year. Most of the allocated funding for Human Capital Development programmes were utilised on entrepreneurship development with 68 programmes totalling RM3.81 billion. Chart 1.14: Total Expenditure by Type of Human Capital Development Programmes in 2022 HUMAN CAPITAL DEVELOPMENT Entrepreneurship Development Skills Upgrading Acculturation of Entrepreneurship Workforce Development Sub-Focus Area TOTAL 68 3,815.05 149,261 15 58.97 12,706 8 5.92 28,630 4 2.16 22,942 95 3,882.10 213,539 Financial Expenditure (RM' million) Number of Beneficiary Number of Programme ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022
41SME INTEGRATED PLAN OF ACTION (SMEIPA) 2023 ||| Access to Financing Time and again, a major challenge for MSMEs have always been Access to Financing, further aggravated by the ongoing economic uncertainty in the light of market recovery from the COVID-19 pandemic. Therefore, the Government remains committed in enabling MSMEs to continue to have access to diversified sources of financing to address their needs at various stages of development. In 2022, a total of nine (9) Ministries and five (5) agencies were involved in implementing 90 programmes under this focus area, slightly lower than the previous year’s count of 91 programmes. However, there was a significant increase in the number of beneficiaries, rising to 540,248 compared to 384,472 in the previous year. The total expenditure for these programmes recorded an increase totalling RM16.49 billion from RM11.53 billion in 2021. KUSKOP had the highest number of programmes under Access to Financing with 25 programmes in 2022, followed by KKDW and MITI, with 14 and 11 programmes, respectively. As for expenditure, KUSKOP also demonstrated the highest spending, amounting to RM7.66 billion, followed by CGC with RM3.55 billion and AIM at RM2.74 billion. As per previous trends, AIM had the most beneficiaries consisting of 395,336 MSMEs, followed by KUSKOP with 91,556 MSMEs and KPKM with 15,694 MSMEs.
CHAPTER 1 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022 42 Table 1.14: Access to Financing Programmes Implemented by Ministries and Agencies in 2022 ACCESS TO FINANCING Ministry / Agency Number of Programme Financial Expenditure (RM’ million) Number of Beneficiary Ministry of Entrepreneur and Cooperatives Development (KUSKOP) 25 7,662.89 91,556 Ministry of Rural and Regional Development (KKDW) 14 138.41 9,031 Ministry of Investment, Trade and Industry (MITI) 11 471.62 7,028 Ministry of Science, Technology and Innovation (MOSTI) 10 208.32 130 Ministry of Agriculture and Food Security (KPKM) 10 204.94 15,694 Credit Guarantee Corporation Malaysia Berhad (CGC) 4 3,550.00 13,159 Ministry of International Trade, Industry and Investment Sarawak (MINTRED) 4 25.00 930 Ministry of Plantation and Commodities (KPK) 3 1.39 406 Perbadanan Usahawan Nasional Berhad (PUNB) 2 203.65 520 Unit Peneraju Agenda Bumiputera (TERAJU) 2 5.00 250 Ministry of Communications and Digital (KKD) 2 2.50 2 Amanah Ikhtiar Malaysia (AIM) 1 2,742.87 395,336 Bank Negara Malaysia (BNM) 1 1,276.00 5,870 Ministry of Women, Family and Community Development (KPWKM) 1 1.00 336 TOTAL 90 16,493.58 540,248 Bulk of the resources were spent soft loan schemes which includes micro financing scheme, amounting to RM12.51 billion, followed by guarantee schemes (RM3.55 billion) and grant scheme (RM339.82 million). ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022
43SME INTEGRATED PLAN OF ACTION (SMEIPA) 2023 Chart 1.15: Total Expenditure by Type of Access to Financing in 2022 ACCESS TO FINANCING Sub-Focus Area TOTAL Grant Scheme Soft Loan Scheme (including Micro Financing) Subsidy Guarantee Scheme Venture Capital Tax Incentive Hybrid Fund Equity and Debt Financing 41 339.82 31,112 26 12,511.60 489,973 11 44.05 3,804 4 3,550.00 13,159 4 33.80 15 2 0.46 2,179 1 8.63 3 1 5.22 3 90 16,493.58 540,248 Number of Programme Financial Expenditure (RM' million) Number of Beneficiary ||| Market Access Market Access is vital for MSMEs’ growth and sustainability. Being the backbone of the economy, MSMEs often face challenges when it comes to accessing markets. For 2022, ten (10) Ministries and one (1) agency implemented 57 Market Access programmes for 72,685 MSMEs with financial expenditures of RM116.36 million. These recorded a significant rise from 49 programmes that were implemented in 2021.
CHAPTER 1 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022 44 KUSKOP conducted 18 programmes, the most for this focus area. This is followed by MITI with 14 programmes. Meanwhile, MINTRED Sarawak recorded the highest number of beneficiaries with 24,717 MSMEs. Table 1.15: Market Access Programmes Implemented by Ministries and Agencies in 2022 MARKET ACCESS Ministry / Agency Number of Programme Financial Expenditure (RM’ million) Number of Beneficiary Ministry of Entrepreneur and Cooperatives Development (KUSKOP) 18 20.37 7,460 Ministry of Investment, Trade and Industry (MITI) 14 39.80 10,372 Ministry of Rural and Regional Development (KKDW) 7 11.32 3,492 Ministry of Plantation and Commodities (KPK) 4 4.21 511 Ministry of Communications and Digital (KKD) 3 2.08 20,748 Ministry of International Trade, Industry and Investment Sarawak (MINTRED) 3 1.93 24,717 Sabah State Government (Sabah State) 2 11.00 901 Ministry of Tourism, Arts and Culture (MOTAC) 2 6.60 2,659 Ministry of Agriculture and Food Security (KPKM) 2 3.21 73 Ministry of Local Government Development (KPKT) 1 15.83 1,734 Federal Land Development Authority (FELDA) 1 - 18 TOTAL 57 116.36 72,685 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022
45SME INTEGRATED PLAN OF ACTION (SMEIPA) 2023 The facilitation to market access allows the Government to further empower MSMEs to leverage their entrepreneurial spirit and innovation as well as drive job creation and income generation. Most of the programmes implemented under the Market Access focus area were for market promotion programmes. These programmes encourage activities for better access into new domestic or international markets. A total of RM65.45 million were utilised for 58,188 MSMEs. Chart 1.16: Total Expenditure by Type of Market Access Programmes in 2022 MARKET ACCESS Promotion - Domestic Linkages Promotion - Domestic & International Branding Initiatives Promotion - International Certification Online Platform Sub-Focus Area TOTAL 16 41.79 18,137 12 14.23 7,822 9 7.94 34,040 7 21.00 2,097 7 15.72 6,011 5 15.50 2,458 1 0.18 2,120 57 116.36 72,685 Financial Expenditure (RM' million) Number of Beneficiary Number of Programme
CHAPTER 1 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022 46 ||| Innovation and Technology Adoption In 2022, a range of support programmes were introduced to empower MSMEs to meet consumers’ evolving demands through Innovation and Technology Adoption. These initiatives played a vital role in enhancing entrepreneurs’ competitiveness and innovation-driven mindset. Under the Innovation and Technology Adoption focus area, a total of 45 programmes were implemented by ten (10) Ministries and one (1) agency which benefitted a total of 63,935 MSMEs trough total expenditure of RM575.18 million. The highest number of programmes were implemented by KUSKOP with ten (10) programmes, while KKD empowered the most beneficiaries totalling 22,122 MSMEs. ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022
47SME INTEGRATED PLAN OF ACTION (SMEIPA) 2023 Table 1.16: Innovation and Technology Adoption Programmes Implemented by Ministries and Agencies in 2022 INNOVATION & TECHNOLOGY ADOPTION Ministry / Agency Number of Programme Financial Expenditure (RM’ million) Number of Beneficiary Ministry of Entrepreneur and Cooperatives Development (KUSKOP) 10 78.87 8,044 Ministry of Investment, Trade and Industry (MITI) 9 293.69 20,238 Ministry of Science, Technology and Innovation (MOSTI) 8 166.39 2,581 Ministry of Communications and Digital (KKD) 4 4.68 22,122 Ministry of Plantation and Commodities (KPK) 4 1.57 414 Ministry of Rural and Regional Development (KKDW) 3 6.63 336 Ministry of Agriculture and Food Security (KPKM) 2 5.91 7,780 Unit Peneraju Agenda Bumiputera (TERAJU) 2 5.00 250 Sabah State Government (Sabah State) 1 10.95 864 Ministry of Higher Education (MOHE) 1 0.80 13 Ministry of Tourism, Arts and Culture (MOTAC) 1 0.69 1,293 TOTAL 45 575.18 63,935 Bulk of the resources were for productivity improvement with RM314.56 million or 54.7% of total expenditure that was spent through 20 programmes and assisted 29,322 beneficiaries. The second largest expenditure was incurred through product development projects with RM206.59 million which enabled them to diversify what they offer and cater to evolving consumer demands.
CHAPTER 1 ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022 48 Chart 1.17: Total Expenditure by Type of Innovation and Technology Adoption Programmes in 2022 \ INNOVATION & TECHNOLOGY ADOPTION Productivity Improvement Commercialisation Product Development Innovation & Technology Adoption / Digitalisation Technical Advisory Incubator Sub-Focus Area TOTAL 20 314.56 29,322 12 36.76 22,741 7 206.59 1,949 4 13.81 3,921 1 3.45 5,781 1 - 221 45 575.17 63,935 Financial Expenditure (RM' million) Number of Beneficiary Number of Programme ||| Infrastructure In 2022, a total of 41 Infrastructure programmes were implemented by six (6) Ministries with total expenditure amounting to RM100.81 million. These programmes are primarily for the provision of business premises with the aim to ensure that MSMEs are provided with adequate and business-friendly facilities to conduct business. Both MINTRED and KKDW implemented 11 programmes each, the most amongst implementing Ministries, followed by Sabah State with ten (10) ENTREPRENEURSHIP AND MSME DEVELOPMENT PROGRAMMES IMPLEMENTED IN 2022