SMECorp Malaysia Business Strategic Plan 2022-2030

PELAN STRATEGIK PERNIAGAAN 2022 - 2030
SME CORP. MALAYSIA

The new structure will require a total of 121 new posts to be created in two (2) service groups, namely
85 executive posts and 36 non-executive posts. The recruitment for these new posts will be carried out
over two (2) phases upon approval:
¢ Phase 1 (2022): 61 posts
¢ Phase 2 (2024): 60 posts
The creation of new posts is necessary in order to support SME Corp. Malaysia’s growing requirements to
meettheneedsanddemandsoftheever-increasingnumberofMSMEsinthecountry.In2021(thefirstyearof
RMKe-12), 97.4% or 1,226,494 of the total business establishments in Malaysia were MSMEs compared
to 1,086,157 in 2016 (the first year of the RMKe-11). The number of MSMEs increased over 140,000
between 2016 and 2021, at an annual average growth rate of 5.2%, during the six-year period. Despite
the impact of the COVID-19 pandemic on MSMEs, MSME contribution to the economy grew in 2021 with
37.4% share to GDP, 11.7% to exports and 47.8% to employment.
Overall within the RMKe-9 to RMKe-11 periods, SME Corp. Malaysia had assisted 47,943 MSMEs
with total funding of RM7.2 billion. The outcome evaluation of SME Corp. Malaysia programmes from
2016 - 2020 under the RMKe-11, which was conducted in August 2021, indicated that recipients of
SME Corp. Malaysia programmes had benefited more than non-recipients in terms of greater
increase in both sales and employment.
In 2021, a total of 644,905 MSMEs had benefited from various programmes and initiatives implemented
by SME Corp. Malaysia, which included 19,901 MSMEs that received assistance from development funds
amounting to RM163.8 million. The role of SME Corp. Malaysia has become increasingly significant
in helping MSMEs recover and rebuild from the adverse impact of the COVID-19 pandemic and the
containment measures imposed by the Government.
The proposed new organisational structure is shown in Chart 3.4.

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Chart 3.4: SME Corp. Malaysia’s Proposed New Organisational Structure

New Chief Executive Officer Integrity Unit
Redeployed Chief Executive Officer’s Office Legal Unit
Rebranded
Unchanged Internal Audit Unit

Division Unit
• Public Relations & Media
Corporate • Publications & New Media
Communications • Events

Deputy Chief Executive Officer Deputy Chief Executive Officer Chief Operating Officer
(Strategic Development) (Business Development) (Corporate Development & Leadership)

Division Unit Division Unit Division Unit
• Business Counselors • H uman Resources Management
Business Advisory • S ME Hub & Facilitation Bumiputera • B umiputera SME Strategy Human Capital • R emuneration & Benefits
• Rating & Accreditation Business • C apacity Building Programme Development • T raining & Policy
Economics, Strategy • Digital Platform Development • P rocessing • Finance
& Coordination • Economics & Strategy • C laims Finance & Accounts • Accounts
• P rogramme Coordination Financing • A lternative Financing • Infrastructure & Network
Inclusive • International Relations Information • I nformation Technology &
Development Market Access & • S upply Chain Technology &
Coordination Internationalisation • E xports Support Data Management Communication Security, Risk &
Business • Microenterprises • B randing & E-Market Development Compliance
Registration • W omen & Youth Entrepreneurship • A pplication Development &
& Licensing Sectoral • C luster / Sectoral Administrative Planning
Integration Development Development & • T echnology & Innovation Services • A ssets & Store
• Strategic Entrepreneurship Technology Adoption • D igitalisation & Industrial • P rocurement
• Project Management Organisational • A dministration, Building &
• B usiness Registration State Office Liaison Revolution 4.0 Planning Logistics
• Change Management & Coordination • S tate Offices • S trategic Planning
• B usiness Licensing • P erlis State Office • I ncome Generation Coordination
• Content & Access Control • C orporation Secretariat
• Portal Development & Integration
• I mplementation & Operations
• Infrastructure & Security

PELAN STRATEGIK PERNIAGAAN 2022 - 2030
SME CORP. MALAYSIA

STAKEHOLDERS

The stakeholders of SME Corp. Malaysia are organisations, groups or individuals:

¢ Whose interests are affected by its policies, programmes and activities
¢ Whose activities strongly affect its operations
¢ Who possess information, resources and expertise needed for strategy formulation and

implementation

The stakeholders of SME Corp. Malaysia include, among others:

¢ Micro, small and medium enterprises (MSMEs)
¢ Prime Minister of Malaysia
¢ Minister of Entrepreneur and Cooperatives Development (MECD)
¢ Cabinet Members
¢ Members of the NESDC
¢ Members of the Corporation
¢ Implementing Ministries & agencies
¢ Financial institutions
¢ Trade associations & chambers of commerce
¢ International organisations (e.g. World Bank, WTO, ASEAN, APEC, OIC)

The key expectation of these stakeholders is the effective implementation of MSME policies, strategies
and initiatives in order to develop highly competitive, innovative and resilient MSMEs to enhance their
contribution to the economy.

SME Corp. Malaysia provides information and services to four (4) distinct categories of stakeholders:

Stakeholders Information and Services Provided
Micro, Small and Information on MSME development programmes, advisory
Medium Enterprises on MSME matters, outreach, financial assistance, MSME
information and statistics
(MSMEs) Coordination and assessment of MSME development
programmes, MSME information and statistics
Implementing Information on MSME development programmes, financing
Ministries and Agencies services, capacity and capability development programmes,
MSME information and statistics
MSME Associations Information on policy and MSME development programmes,
and NGOs financing services, capacity and capability development
programmes, MSME information and statistics
International
Organisations and Fora

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CORE PROCESSES

There are six (6) high level core processes conducted by SME Corp. Malaysia:

Economics and Trend Coordination Programme
Analysis Implementation

Business Development Business Advisory Monitoring and
Services Assessment

The interaction of these core processes together with the support processes is shown in Chart 3.5.

Chart 3.5: SME Corp. Malaysia’s High Level Core Processes Map

CORE PROCESSES DESIRED OUTCOMES

INFORMATION & ADVISORY SUPPORT (ECONOMIC, GLOBAL) Competitive,
Innovative & Resilient
ECONOMICS & COORDINATION MONITORING &
TREND ANALYSIS ASSESSMENT MSMEs
PROGRAMME
IMPLEMENTATION Economic Growth &
Shared Prosperity

BUSINESS BUSINESS
DEVELOPMENT ADVISORY
SERVICES

SUPPORT PROCESSES

CORPORATE INFORMATION HUMAN FINANCE & STRATEGIC
MANAGEMENT TECHNOLOGY CAPITAL ACCOUNTS COMMUNICATIONS
DEVELOPMENT

INTEGRITY LEGAL & INTERNAL
CORPORATION AUDIT

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Data and information on the economy, industry and MSME trend analyses are based on the current
strategies implemented. If need be, SME Corp. Malaysia can review the current strategies and
propose new ones to in order to achieve the MSME development targets. The strategies serve as the
guiding principles for SME Corp. Malaysia in coordinating the implementation of MSME development
programmes across the implementing Ministries and agencies in developing dynamic, innovative and
resilient MSMEs.

These core processes are strongly supported by the various support processes, namely Corporate
Management, Information Technology, Human Capital Development, Finance and Accounts, Strategic
Communications, Integrity, Legal and Corporation, and Internal Audit.

The timely and efficient coordination between the core and support processes will ensure cohesive and
comprehensive management of the organisation.

SCENARIO ANALYSIS

Scenario analysis depicts the internal views and external forces that affect the operations of SME
Corp. Malaysia. The Strengths, Weaknesses, Opportunities and Threats (SWOT) analytical tool is
used to identify and analyse the strengths and weaknesses of SME Corp. Malaysia from the internal
perspective, whilst analysing the opportunities and threats it faces from an external perspective.

Strengths, Weaknesses, Opportunities and Threats (SWOT)

SME Corp. Malaysia has its unique strengths, but it also has to address some areas which need
improvements, as depicted in Chart 3.6.

Chart 3.6: SME Corp. Malaysia’s Strengths, Weaknesses, Opportunities and Threats (SWOT)

STRENGTHS WEAKNESSES
¢ Being recognised as a central point for MSME ¢ Limitation of resources - shortage of human

development (CCA role) resources and operational budget
¢ Good baseline monitoring of agencies in MSME ¢ Lack of expertise / skilled talent (e.g. income /

development investment initiatives and business advisory)
¢ Strong participation in APEC, bilateral ¢ Lack of funding for development programmes

arrangements (international recognition) (extreme demand, less fund)
¢ Provide linkage and facilitate market access for ¢ No follow through on identified capability gap
¢ Difficulties in the implementation of programmes
MSMEs
¢ Provide assistance for various target groups, at state level due to shortage of human capital
¢ Lack of prioritisation on specific target groups
including microenterprises, inclusive groups, ¢ No automated system / database for all grant
Bumiputera, youths and high growth companies
¢ Good at enhancing business processes for applications, hence manual data entry and
MSMEs reporting
¢ Strong Top Management support, have dedicated
people and teamwork
¢ Clear mandate from the Government and
stakeholders
¢ Established processes for developing MSMEs
(e.g. SME Status, SCORE, National Mark of
Malaysian Brand)
¢ Provide end-to-end assistance through MyAssist
MSME Portal

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OPPORTUNITIES THREATS

¢ Do more with less through more collaborations ¢ Insufficient Government funding (DE & OE)
with other MSME agencies, partnerships and ¢ Policies that are irrelevant and impacting MSME
prioritisation of key initiatives development
¢ Potential to leverage on technology to assist ¢ Too many stakeholders to address
MSMEs ¢ Undue political influence including
¢ Emerging industries (e.g. inclusive business and reprioritisation of funding by the Ministry
social entrepreneurship) ¢ Duplication with other Ministries and agencies
¢ Modernisation of operations, systems especially on MSME outreach activities by other
development for processing and data collection parties
under SME Rating and Accreditation Programme

Among the strengths of SME Corp. Malaysia is the visible Top Management support for it to spearhead
the coordination of MSME development initiatives among implementing Ministries and agencies. Apart
from having high standing among international networks of MSME development agencies, SME Corp.
Malaysia is comprised of a strong mix of highly dedicated team of experienced management and young
professionals, which provides a compelling foundation for the delivery of its goals and objectives.
With more than 25 years of experience in MSME development, SME Corp. Malaysia has established
effective key programmes, such as Business Accelerator Programme (BAP), Tunas Usahawan Belia
Bumiputera (TUBE) and SME Competitiveness Rating for Enhancement (SCORE).
On the other hand, SME Corp. Malaysia will need to focus on areas of improvements in order to propel
the organisation to higher levels of achievements, including:
¢ Strengthening competency excellence
¢ Providing greater exposure to its manpower in dealing with MSME requirements
¢ Enhancing the service-oriented culture within the organisation
¢ Enhancing the efficiency and effectiveness of resources
¢ Retaining experienced and knowledgeable human capital
¢ Providing its human capital with necessary tools and skills to perform effectively
There are also several opportunities, as presented in Chart 3.6, for SME Corp. Malaysia to benefit
from, which include undertaking more collaborations and partnerships, advent of emerging industries
and automated processes, all of which could assist SME Corp. Malaysia in further promoting the
development of MSMEs. However, equally important, SME Corp. Malaysia must also address prevalent
threats, including the reprioritisation of Government funding and the effectiveness of its delivery
system to MSMEs.

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04

STRATEGIC FOUNDATION

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A strategic foundation is the framework that determines the policy direction, roles and direction of an
organisation that will have major impacts on financial and non-financial performance. The strategic
foundation of SME Corp. Malaysia is proposed to comprise of nine (9) components, as below:

VISION MISSION VALUES

What we aspire to be in Why we exist What principles we
the future believe in

GOALS FOCUS AREAS KEY SUCCESS
FACTORS
Measures of success Specialisation to
achieve goals Prerequisites to support
STRATEGIES efficient implementation
INITIATIVES
Plans to achieve goals INSTITUTIONAL
Specific projects to SUPPORT
support strategies
Internal capacity to enable
successful service delivery

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STRATEGIC FRAMEWORK FOR SME CORPORATION
MALAYSIA (SME CORP. MALAYSIA)

The strategic framework for SME Corp. Malaysia provides the strategic directions and performance
outcomes. This strategic framework supports its strategic foundation to ensure that SME Corp.
Malaysia remains aligned in achieving its vision and mission. Chart 4.1 describes the overall Strategic
Framework for SME Corp. Malaysia (2022 - 2030).

Chart 4.1: Strategic Framework for SME Corp. Malaysia

Vision

The Premier Organisation for the Development of Progressive MSMEs
to Enhance Wealth Creation and Social Well-Being of the Nation

Mission Promote the Development of Competitive, Innovative & Resilient MSMEs through Effective Coordination &
Provision of Business Support

7 PREMIER Proactive Respect Esprit Motivated Innovative Excellence Resilient
Values de Corp

2 Goals Increase Formation of High Growth & Innovative Create Viable Microenterprises for Greater
Firms for Quantum Leap in GDP Contribution to the Economy

5 Focus Value Chain in High Internationalisation Microenterprises & Digitalisation & Recalibrating CCA
Areas Impact Industries of SMEs Inclusive Groups Automation of Role of SME Corp.
ESG Compliance
5 Key Success Technological MSME Access to MSMEs Malaysia
Factors Adoption & Financing Triple Helix Government Service
Collaboration
Modernisation Delivery

13 Strategies

35 Initiatives

Institutional Support

Efficient & Digitised Skilled, Knowledgeable & Credible Information & Adequate Resources for
Operations Committed Workforce Data Analytics on MSME Sustainable & Continuous

Development Operations

VISION

The premier organisation for the development of progressive MSMEs to enhance wealth creation
and social well-being of the nation

SME Corp. Malaysia aspires to be:
¢ An exemplary model and the preferred organisation in MSME development
¢ Highly recognised for its capability to deliver quality and effective MSME development programmes
¢ Highly regarded by the international MSME fraternity

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MISSION

Promote the development of competitive, innovative and resilient SMEs through effective coordination
and provision of business support

SME Corp. Malaysia is committed to promoting the development of competitive, innovative and resilient
MSMEs through local and international collaborations, and providing quality and high value-added
services and business support to the MSMEs.

CORE VALUES

¢ Core values are upheld by SME Corp. Malaysia as the essence that makes SME Corp. Malaysia
a preferred organisation. They shape the corporate culture that establishes the foundation on
which employees of SME Corp. Malaysia build their success to ensure effective, efficient and timely
delivery of services.

¢ Core values serve as guiding principles to the employees of SME Corp. Malaysia and instil
commitment towards realisation of the shared vision. Represented by the acronym PREMIER as
described in Chart 4.2, of which it aspires to be, the core values of SME Corp. Malaysia.

Chart 4.2: Core Values of SME Corp. Malaysia

P PROACTIVE
Taking action by causing change and not only reacting
to change when it happens

R RESPECT
Feeling of deep admiration for someone or something
elicited by their abilities, qualities or achievements

E ESPRIT DE CORP
Feeling of pride and mutual loyalty shared by members

M MOTIVATED
Very enthusiastic or determined

I INNOVATIVE
Introducing new ideas, original and creative in thinking

E EXCELLENCE
R Quality of being outstanding or extremely good

RESILIENT
Able to withstand or recover quickly from difficult
conditions

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GOALS

¢ Apart from pursuing technological advancements to boost growth, as well as to enhance productivity
and innovation, it is also important to focus on robust balanced growth. Therefore, SME Corp.
Malaysia will continue to develop Malaysian MSMEs through a two-goal approach as illustrated in
Chart 4.3.

Chart 4.3: Goals of SME Corp. Malaysia

1Increase formation of 2Create viable

HIGH GROWTH & MICROENTERPRISES
INNOVATIVE FIRMS
for greater contribution
for quantum leap in GDP to the economy

Creation of more global SMEs through Scale-up of microenterprises
through targeted support
targeted assistance in automation,
digitalisation & sustainability

¢ First Goal: Increase formation of high growth and innovative firms for a quantum leap in Gross
Domestic Product (GDP) with the creation of more global MSMEs through the provision of targeted
assistance in automation, digitalisation and sustainability

¢ S econd Goal: Create viable microenterprises for greater contribution to the economy by scaling
them up into small firms through targeted support

FOCUS AREAS
¢ Focus areas are key elements within the industry that must be emphasised for the future of MSME

development, taking into account areas that SME Corp. Malaysia has an active and direct role. There
are five (5) strategies as the key focus areas that outline SME Corp. Malaysia’s strategic priorities
for the period of 2022 - 2030, as shown in Chart 4.4.

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Focus Chart 4.4: Focus Areas of SME Corp. Malaysia's Strategic Framework
Area Value Chains in High Impact Industries: Looks into identifying and developing value chains in key
high impact sectors of interest for MSME development. Eight (8) potential high impact industries
1 have been identified namely, smart agriculture, aerospace, electrical & electronics, medical
devices, halal industry, tourism, oil & gas and biomass / biotech

Focus Internationalisation of SMEs: Identifies the need for SMEs to become more involved in regional
Area trade and business cooperation, aiming to enable more SMEs to gradually shift from domestic to
global focus
2

Focus Microenterprises & Inclusive Groups: Identifies the need for business inclusivity and how
Area microenterprise development can be made more impactful for the inclusive groups in Malaysia

3

Focus Digitalisation & Automation of MSMEs: Looks into accelerating the uptake of digital technologies
Area and automation among MSMEs to improve productivity and efficiency

4

Focus Recalibrating the Central Coordinating Agency (CCA) Role of SME Corp. Malaysia: Focuses
Area on realigning the objectives of SME Corp. Malaysia with various Ministries and agencies on the
development of MSMEs in Malaysia
5

KEY SUCCESS FACTORS

Key success factors are aspects that should be considered to support the focus areas. They also include
initiatives that are identified as important, but not necessarily to be led by SME Corp. Malaysia. Five
(5) key success factors, have been identified to support the overall strategies that cut across the focus
areas, as illustrated in Chart 4.5 below:

Chart 4.5: Key Success Factors

Technological MSME Access ESG Triple Helix Government
Adoption & to Financing Compliance Collaboration Service
Delivery
Modernisation

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STRATEGIES

The 13 strategies, developed within the purview of the focus areas, consider each of the five (5) focus
areas, depending on their relevance, as illustrated in Chart 4.6.

Chart 4.6: 5 Focus Areas and the 13 Strategies

5 FOCUS AREAS 13 STRATEGIES

1 Value Chains in High 1. Industry Linkages Programme
Impact Industries 2. Intensifying Market Linkages through Enhanced Matching Platform
3. Synergising MSME Development with ‘Buy-Local’ Policies

2 Internationalisation 4. Developing a Targeted Market-based Focus for SMEs to Engage in International Trade
of SMEs 5. Facilitating Exports Assistance & Trade Advisory Services for SMEs
6. Facilitating Strategic Alliances to Involve SMEs into the Global Value Chains (GVCs)

3 Microenterprises & 7. Adopting a More Targeted Approach in Addressing the Microenterprise Segment
Inclusive Groups 8. Inclusive Business (IB) to Support Microenterprises in the Value Chain
9. Promoting Specialisation via Higher Education Institutions (HEIs)

4 Digitalisation & 10. Developing MSME Digital Compass and IoT Toolkit Platform
Automation of MSMEs 11. Collaboration with HEIs to Provide Digital Talent Training & Linkages for MSMEs

Recalibrating the Central 12. R ealigning of SME Integrated Plan of Action (SMEIPA) to Enhance MSME Coordination
Initiatives
5 Coordinating Agency (CCA)
Role of SME Corp. Malaysia 13. Enhancing Business Registration Process & Database Centralisation

The development of the strategies is guided by four (4) key principles which are intended to form a
holistic baseline in the crafting of strategies moving forward, as shown in Chart 4.7.

Chart 4.7: Key Principles

TARGETED INTEGRATED MONITORING & HOLISTIC

APPROACH ASSISTANCE GRADUATION DEVELOPMENT

Emphasis on high Integrated Structured APPROACH
impact industries assistance monitoring,
and deliberation including access to reporting and goal Development
financing, training setting to facilitate of MSMEs as a
from volume to / upskilling and growth towards national agenda
growth-centric linkages to business 'graduation' from the by taking a whole-
opportunities programme of-government
approach
approach

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INITIATIVES

Initiatives refer to how the strategies are being implemented under the focus areas, and 35 initiatives
have been identified that can be implemented. The overall Strategic Plan Matrix of SME Corp. Malaysia
with focus areas, strategies and initiatives are illustrated in Appendix A.

INSTITUTIONAL SUPPORT

Institutional support is a crucial factor for the successful implementation of programmes and the
development of the organisation. Four (4) areas of institutional support have been identified for
SME Corp. Malaysia, as follows:

¢ E fficient and digitised operations
¢ S killed, knowledgeable and committed workforce
¢ Credible information and data analytics on MSME development
¢ A dequate resources for sustainable and continuous operations

STRATEGIC PROGRAMMES

The approach on the development of proposed strategies and initiatives is based on a prioritisation
exercise using the Impact-Implementation Prioritisation Matrix to determine the levels of priority of the
13 strategies formulated. The prioritisation exercise is conducted using a quantitative method which
involves assigning scores based on key parameters segmented by impact and ease of implementation.
Details on the impact and ease of implementation are described in Table 4.1.

Table 4.1: Consideration on Level of Impact and Ease of Implementation

IMPACT

Directly Contributing to Aligned to Other Alignment with High Type of MSME Catered
MSME Targets National Policies Impact Sectors

MSME targets were set Review of selected Alignment is carried Strategies that may
for the following areas: policies in DKN 2030 & out along with the high assist the development
• MSME GDP RMKe-12 suggests that impact sectors identified of a wider range of
• MSME Exports the 5 focus areas were MSMEs are given
• MSME Productivity addressed with different prioritisation
emphases

EASE OF IMPLEMENTATION

Timeline No. of Stakeholders Existing Capability of Availability of Budget /
There are three (3) Involved SME Corp. Malaysia Funding
timelines to focus
on for the ease of The lesser the number Based on the existing Whether SME Corp.
implementation of these of stakeholders capability of SME Corp. Malaysia has the
strategies: involved, the easier Malaysia which could available budget for
• S hort-term these strategies can be include, among others, the strategy to be
implemented human capital, technical implemented, or does
(3 - 6 months) knowledge and network it require a new budget
• Mid-term linkages request to EPU / MOF,
or to leverage on other
(6 - 12 months) funding sources
• L ong-term

(> 12 months)

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The Impact-Implementation Prioritisation Matrix used to establish a high level prioritisation of the
13 strategies and recommendations is set out into four (4) categories, namely:

¢ F our (4) Quick Wins Strategies: high impact and easy to implement
¢ Five (5) Big Bets Strategies: high impact and difficult to implement
¢ O ne (1) Continuous Improvements Strategy: low impact and easy to implement
¢ Three (3) Low Priority Strategies: low impact and difficult to implement

The prioritisation is based on current analysis of impact and ease of implementation. It may change
over time corresponding to the changes in the parameters set. The illustration is shown in Chart 4.8.

Chart 4.8: Impact-Implementation Prioritisation Matrix Based on Strategy Recommendations

HIGH MPACT

5 Realigning of SME Integrated Plan
of Action (SMEIPA) to Enhance
12 MSME Coordination Initiatives 9 Promoting Specialisation via Higher
Education Institutions (HEIs)
Industry Linkages
3 Synergising 1 Programme 2 Intensifying Market Linkages through
MSME Enhanced Matching Platform
4 Development
with ‘Buy- Adopting a More Targeted
Local’ Policies 4 Developing a Targeted 7 Approach in Addressing the
Market-based Focus
for SMEs to Engage in Microenterprise Segment
International Trade
10 Developing MSME 5 Facilitating Exports Assistance
Digital Compass and & Trade Advisory Services for
IoT Toolkit Platform
SMEs
3
Quick Wins
Big Bets
High Impact, Easy to Implement
High Impact, Difficult to Implement
Continuous Improvements
Low Priority
Low Impact, Easy to Implement
Low Impact, Difficult to Implement

2 Facilitating Strategic 11 Collaboration with HEIs to Provide Digital
Alliances to Involve Talent Training & Linkages for MSMEs
6 Inclusive Business
(IB) to Support
SMEs Into the Global 8

Value Chains (GVCs) Microenterprises in the
Value Chain

1 13 Enhancing Business
Registration Process &
Database Centralisation

01 2 3 4 5

EASE OF IMPLEMENTATION

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An exercise was undertaken to realign the existing programmes to the strategies proposed. Based on
this, the programmes that can be aligned were identified and requirements for new programmes were
ascertained, as illustrated in Table 4.2.

Table 4.2: Realignment of Existing Programmes and Creating Potential New Programmes

Strategy Realigning Existing Programmes Creating Potential New Programmes
Realignment of PRESTIGE
S1: Industry Linkages Programme programme & integration with Potentially considering new
Business Counsellors (BCs) programmes in collaboration with
S2: Intensifying Market Linkages Enhancement of 'MeetMe' Module on Ministry of Finance (MOF) to uplift
through Enhanced Matching MyAssist MSME & GLOSMEP MSMEs
Platform
Enhancement of GLOSMEP, National New initiative to identify strong
S3: Synergising MSME Development Mark of Malaysian Brand & GEB with alliances for exports market
with ‘Buy-Local’ Policies market intelligence insights for SMEs
Empowering BCs & MyAssist MSME There is a need to identify
S4: Developing a Targeted Market- Portal, as well as linkages with other specialisation within HEIs to be
based Focus for SMEs to Engage agencies (e.g. MATRADE) aligned to the eight (8) high impact
in International Trade Realignment of Micro Connector, industries and microenterprises
GrowBiz & Bumiputera programmes New initiative to collaborate with
S5: Facilitating Exports Assistance & towards growth and scale-up different agencies (e.g. MDEC, MPC)
Trade Advisory Services for SMEs Realignment of IB as feeder to scale to establish digital / technology
up microenterprises platform assessment tool
S6: Facilitating Strategic Alliances New initiative to collaborate with
to Involve SMEs Into the Global Stronger synergy between Ministries HEIs for training programmes & with
Value Chains (GVCs) & agencies, potentially including agencies for digital talent linkages
public representatives / public access
S7: Adopting a More Targeted Enhancement of existing MalaysiaBiz
Approach in Addressing the & MyAssist MSME, including
Microenterprise Segment MalaysiaBiz as functional integrated
one-stop starting business platform
S8: Inclusive Business (IB) to Support & MyAssist MSME for all grant
Microenterprises in the Value application centralisation
Chain

S9: Promoting Specialisation via
Higher Education Institutions
(HEIs)

S10: D eveloping MSME Digital
Compass & IoT Toolkit Platform

S11: C ollaboration to Provide Digital
Talent Training & Linkages for
MSMEs

S12: R ealigning of SME Integrated
Plan of Action (SMEIPA) to
Enhance MSME Coordination
Initiatives

S13: E nhancing Business
Registration Process & Database
Centralisation

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MOVING FORWARD

Recalibrations are undertaken to align current programmes offered by SME Corp. Malaysia with
the agenda moving forward through a top level review of and identifying potential synergies in the
implementation. Finally, four (4) groupings were identified as core tasks of SME Corp. Malaysia and six
(6) existing programmes are proposed to be reviewed for continuation or elimination.

CORE TASK 1
An SME Financing Fund needs to be established as consolidation of financing programmes stated below
to cater for development of MSMEs in Focus Area 1: Value Chains in High Impact Industries, Focus Area 2:
Internationalisation of SMEs and Focus Area 4: Digitalisation and Automation of MSMEs:
¢ Business Accelerator Programme (BAP)
¢ SME Revitalisation Financing (SMERF) Programme
¢ SME Investment Partner (SIP) Programme
¢ Soft Financing for SMEs (SFSME) Programme

CORE TASK 2
A Scale-up Programme needs to be established to focus on the transformation (development) of
microenterprises into small for scale-up purposes. Consolidate all components under BizME (Micro Connector,
GrowBIZ, Women Netpreneur, Inclusive Business [IB], etc.) for this purpose.

CORE TASK 3
A Bumiputera Business Development Programme needs to be established to assist Bumiputera businesses
in four (4) stages, namely:
¢ Turning ideas around
¢ Business startups
¢ Business kickoff
¢ Business enhancement
Consolidate Bumiputera Enterprise Enhancement Programme (BEEP) and Tunas Usahawan Belia Bumiputera
(TUBE) Programme for this purpose.

CORE TASK 4
The CCA role of SME Corp. Malaysia to comprise functions below:
¢ MSME Accreditation (SME Status, SCORE)
¢ Coordination (SMEIPA, SSIS, Economic Analysis)
¢ Information and Advisory (Business Counsellors, SME Hub, MyAssist MSME, MalaysiaBiz, SMEinfo

Portal, Publications)
¢ Signature Events (E50, SME Week, SMIDEX)
¢ MSME Sustainability Agenda
¢ SME Emergency Fund (SMEEF)

REVIEW EXERCISE
Programmes and activities that need to be reviewed objectively based on mandate and goals of the organisation,
as well as the priority and outcome are:
¢ Bankable, Investable Gameplan (BIG) Programme
¢ Inclusive SME Ecosystem (i-SEE) Programme
¢ 1-InnoCERT Programme
¢ SME Digitalisation Programme
¢ Halal Development Programme
¢ Technology Need Pitching (TNP)
¢ Programme Coordination Working Committee (PCWC) Meeting

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BAB 4:
ASAS STRATEGIK

SME Corp. Malaysia must strive to make the implementation of programmes, especially funding-
related, simpler for internal efficiency, external reporting, as well as for easy understanding of the
MSMEs. This includes merging of small budget Development Expenditure (DE) programmes and
provision of a masterform with standardised supporting documents and client charter. The transition
towards this improvement can be done in phases and fully implemented in Rancangan Malaysia Ke-13
(RMKe-13) (refer to Chart 4.9).

Chart 4.9: Proposed Programmes Post-Reconciliation

FOCUS AREA 1 Only 3 DE Fund-Related Programmes FOCUS AREA 5 MSMEs
Value Chain in High by SME Corp. Malaysia Recalibrating the CCA Role  
Impact Industries  
1 of SME Corp. Malaysia
FOCUS AREA 2 SME Financing Fund Ministries &
Internationalisation of MSME Accreditation Agencies
Value chain, high growth, exports,  
SMEs sustainability, technology adoption Coordination  
& modernisation, digitalisation and
FOCUS AREA 4 others Information & Advisory Private Sector,
Digitalisation & Associations,
Automation of MSMEs 2 SME Sustainability Agenda
NGOs
FOCUS AREA 3 Scale-up Programme Signature Events  
Microenterprises & SME Emergency Fund  
3 Bumiputera Business
Inclusive Groups (SMEEF) International
Development Organisations
Programme
and Fora

The general implementation phases will include the implementation of the programmes, monitoring
of the programmes and conducting a review, as well as refinement of the programmes. The
overall implementation phases of SME Corp. Malaysia’s programmes are outlined below, although
implementation may be delayed for initiatives that requires national policy decisions.

Formulation & Review & Sustainability
Foundation Stewardship & Evaluation

2022 - 2025 2026 - 2028 2029 - 2030

Various Targeted Programmes & Initiatives in Nine (9) Years
Supported by Strategic Plan Matrix with KPIs

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265

PBARBT5I:II:
CKOESNICMLPUUSLIOAN AND APPENDICES

PART III

CONCLUSION AND
APPENDICES

RMKe-13 CCA Partnerships
innovative

Future-proof Moving forward

sustainability

inclusive

reselient Globally
recover Compettitive
& Rebuild
Ministries
Agencies
collaborations

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05

CONCLUSION

267

BAB 5:
KESIMPULAN

CONCLUSION

BACKGROUND

The role of SME Corp. Malaysia in MSME development has become increasingly significant, especially
in assisting MSMEs recover and rebuild from the adverse impact of the COVID-19 pandemic. Guided
by its Business Strategic Plan (BSP) 2022 - 2030, SME Corp. Malaysia will strive in further promoting
the growth of MSMEs, while building the momentum for greater MSME contribution though inclusivity
and sustainability.

This BSP 2022 - 2030 was developed based on the key strategies identified to shape the strategic
planning of the organisation in the Report on Future of MSME Development in Malaysia by SME Corp.
Malaysia. It is imperative to establish a conducive and holistic ecosystem in supporting MSMEs and
enabling them to become local, and eventually, global players. Aligning to the initiatives under RMKe-
12, the future direction for MSME development looks into the whole business stages, from startups to
matured MSMEs, by further boosting their entrepreneurial capabilities and strengthening the business
landscape aimed at creating sustainable and globally competitive players.

SME Corp. Malaysia’s emphases for the next nine (9) years have been identified, factoring in multiple
important aspects, including:

01 Aligning MSME value chains in identified high value sectors
in future MSME development

02 Improving SME linkages with the global market and
encouraging international commercial expansion

03 Targeting inclusive business development to help achieve
socioeconomic objectives

04 Shifting MSMEs towards digitalisation

05 Recalibrating the CCA role of SME Corp. Malaysia and policy
tools to better enable them to achieve MSME goals

The key success factors that will support the overall strategies implementation are technological
adoption and modernisation, MSME access to financing, ESG compliance, triple helix collaboration and
Government service delivery.

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Chart 5.1: Fundamental Aspects of BSP on MSME Development

Focus Areas identified for future Key Success Factors identified to
of MSME development support focus areas

FOCUS AREA 1 Technological Adoption &
Modernisation
Value Chain in High Impact Industries

FOCUS AREA 2 MSME Access to Financing

Internationalisation of SMEs

FOCUS AREA 3 Key Focus Key Success ESG Compliance
Areas Factors
Microenterprises & Triple Helix
Inclusive Groups Moving Forward Collaboration
on Development
FOCUS AREA 4 Government
of MSMEs in Service Delivery
Digitalisation & Malaysia
Automation of MSMEs The prioritisation exercise
using the Impact-
FOCUS AREA 5
Implementation Prioritisation
Recalibrating the Matrix identified 4 Quick Wins,
Central Coordinating 5 Big Bets, 3 Low Priority and
Agency (CCA) Role of
SME Corp. Malaysia 1 Continuous Improvements
Strategies
Guiding Strategies
Principles Supported by
35 Initiatives

Guiding Principles to steer the 4 Quick Wins Strategies
formulation of strategies & initiatives
High Impact, Easy to Implement
Targeted Integrated
Approach Assistance 5 Big Bets Strategies

Monitoring & Holistic Development High Impact, Difficult to Implement
Graduation Approach
3 Low Priority Strategies

Low Impact, Difficult to Implement

1 Continuous Improvements Strategy

Low Impact, Easy to Implement

A top level review on major programmes and initiatives offered by SME Corp. Malaysia showed that
there is a need to realign, reconcile or even eliminate certain programmes to ensure bigger outcomes
can be achieved with equal or smaller budget and with existing size of workforce. Programmes
that have, to a lesser extent, minimal outcomes due to inability of programme owners to track past
recipients, as well as constant implementation issues, such as insufficient budget, backlog and slow
disbursements, need a serious consideration for elimination or revamp.

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BAB 5:
KESIMPULAN

Consolidating small budget programmes will not only ease implementation, but will also be easier for
MSMEs to navigate the assistances by SME Corp. Malaysia. It is proposed for SME Corp. Malaysia to
have only three (3) major funding-related programmes, namely:

01 02 03

MAJOR SME Financing Fund to Scale-up Bumiputera
FUNDING- cater for development Programme for Business
RELATED of SME value chains,
PROGRAMMES internationalisation of scaling up of Development
SMEs and digitalisation & microenterprises Programme to
automation of MSMEs assist Bumiputera
businesses across
business stages

The transition towards this improvement can be done in phases and fully implemented in
RMKe-13.
In order to develop better programmes in the future, SME Corp. Malaysia needs to adopt a more dynamic
programme evaluation process as to better assess the effectiveness of programmes, as well as to
perform corrective measures. The approval process and disbursement speed of financial assistances
must also be improved since adequate cash flow in daily business operations is crucial for MSMEs.
Equally important, SME Corp. Malaysia must harness its strengths and capitalise on prevailing
opportunities, while addressing its weaknesses and imposing threats in order to propel the
organisation to higher levels of achievements. Needless to say, strong and undivided support from the
Government and MECD, particularly in terms of allocation of sufficient funding, is essential to ensure
the effectiveness of the organisation’s delivery system to MSMEs.
Realigning and enhancing existing MSME programme infrastructure along the strategies identified,
combined with deeper cooperation, collaboration and partnership with MSME agencies and industry
groups, would allow SME Corp. Malaysia to be in a better position as a main point of reference for
MSMEs in Malaysia amid a post-pandemic economy. The implementation of SME Corp. Malaysia’s
proposed new organisational structure will significantly strengthen the workforce in ensuring quality
deliverables and the provision of enhanced services and support that will reach the growing number
of MSMEs.
Through SME Corp. Malaysia Business Strategic Plan 2022 - 2030, it is the ultimate goal of SME Corp.
Malaysia to become a leading agency that is strategically focused, highly dedicated and fully motivated
in providing comprehensive and integrated assistance and support to MSMEs, in their recovery and
rebuilding efforts, in an evolving and challenging economic landscape arising from the COVID-19
pandemic.

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APPENDICES

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APPENDIX A
STRATEGIC PLAN MATRIX

272
(I) INITIATIVES FOR IMPLEMENTATION BY FOCUS AREA AND STRATEGY
Please refer to the Report on Future of MSME Development in Malaysia for detailed implementation proposals.

FOCUS AREA 1: VALUE CHAIN IN HIGH IMPACT INDUSTRIES

STRATEGY KEY PERFORMANCE WHO INITIATIVE TIME FRAME
S1: Industry INDICATOR (KPI) Core Support Short- Medium- Long-
Linkages Term Term Term
Programme • N umber of SMEs linked to BD PC, BS, a. I dentify suitable large companies within
large companies SC, IC, the high impact industries ü
S2: Intensify EP, BBD b. MSME assessment and filtration üü
Market Linkages • Sales value (RM) üü
through üü
Enhanced c. M SME capability and capacity building
Matching module üü
Platform
S3: Synergising • N umber of SMEs linked to IC PC, BS, a. O nboarding and diagnostic tool for üü
SME large companies EP, BBD profiling of MSMEs
Development b. S tructured growth and development ü
with 'Buy-Local' • N umber of growth and plans
Policies development plans c. I ntensify collaboration with relevant üü
agencies for database and promotion
• Sales value (RM) üü
• N umber of advisory üüü

and outreach initiatives
conducted

• Number of advisory EP PC, BS, a. A dvisory support to MSMEs in complying
and outreach initiatives BBD with new definition of 'Barangan
conducted Malaysia'

• C ommission for late payment b. P roductivity improvements for goods /
established services above margin of preference
threshold

c. C apability development to firms under
central contract / central panel contract

d. S etting up a Commission for late
payment

FOCUS AREA 2: INTERNATIONALISATION OF SMEs APPENDIX A
STRATEGIC PLAN MATRIX
STRATEGY KEY PERFORMANCE WHO INITIATIVE TIME FRAME
INDICATOR (KPI) Core Support Short- Medium- Long-
Term Term Term
S4: Developing a • N ew exports markets IC PC, EP, a. I dentifying and targeting specific
Targeted Market- identified SC markets based on SME trade outcomes ü
based Focus for and agreements
SMEs to Engage • Number of advisory b. E stablishing a dedicated representative üü
in International and outreach initiatives for SME interests in targeted G2G
Trade conducted collaboration üüü
c. L everaging links with SME groups to
S5: Facilitating • N umber of SMEs assisted to facilitate information sharing ü
Export Assistance exports
and Trade IC BS, a. F acilitating SME advisory in international ü
Advisory Services • E xports value (RM) BBD, EP quality accreditation and certification
for SMEs requirements üüü
b. E nhancing the advisory role of SME üüü
S6: Facilitating • N umber of partnerships Corp. Malaysia on trade facilitation and üüü
Strategic established procedural guidance for SMEs
Alliances to c. D eveloping an SME-friendly framework
Involve MSMEs • Number of SMEs using for ESG compliance
into the GVCs trading houses
IC BD a. F acilitating private sector partnerships
between MNCs and SMEs

b. F acilitating the usage of trading houses
to promote and develop SMEs

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APPENDIX A
STRATEGIC PLAN MATRIX

274
FOCUS AREA 3: MICROENTERPRISES AND INCLUSIVE GROUPS

KEY PERFORMANCE WHO TIME FRAME
INDICATOR (KPI) Core Support
STRATEGY INITIATIVE Short- Medium- Long-

Term Term Term

S7: Adopt a • N umber of microenterprises ID, BS, SC a. A dopt a more targeted approach in ü
More Targeted graduated / scaled-up (by BBD BS addressing the microenterprise segment
Approach in revenue)
Addressing the ID EP, PC, b. I mplement structured programmes with
Microenterprise ID, BD BBD graduation pathway (from micro to small üü
Segment enterprises)

c. C onduct promotional initiatives for target üüü
market
S8: Inclusive • Number of microenterprises üü
Business (IB) to immersed into the value a. D evelop a pool of viable microentreprises
Support Micro- chain for greater participation in the value üü
enterprises in the chain ü
Value Chain • Value of business linkages üü
(RM) b. P romote incentive for venture capitalists
/ alternative financing to support the
• New financing for IBs growth of IB

S9: Promote • Number of specialised HEIs a. I dentify list of specialised HEIs for
Specialisation via identified and promoted selected high impact industries
Higher Education
Institutions • Specialised training b. S pecialised training programmes
(HEIs) programmes established according to industry demand

FOCUS AREA 4: DIGITALISATION AND AUTOMATION OF MSMEs

KEY PERFORMANCE WHO TIME FRAME
INDICATOR (KPI) Core Support
STRATEGY INITIATIVE Short- Medium- Long-

Term Term Term

S10: Developing • D efinition of MSME BD EP, PC a. R efining the definition of MSME
MSME Digital digitalisation refined digitalisation based on economic sub-
ü

Compass and IoT • A n integrated digital health- sector, revenue and firm size
Toolkit Platform check diagnostic tool for
MSME developed b. D eveloping an integrated digital health-
• Provision of integrated check diagnostic tool based on MSME üü
assistance to eligible MSMEs sector and size üüü
üü
c. I ntegrated assistance to eligible MSMEs

S11: • S tructured training modules BD PC a. I dentify the digital needs of MSMEs and
Collaboration based on digital needs of HEI expertise to develop structured
with HEIs to MSMEs developed training modules üü
Provide Digital
Talent Training • A networking platform for b. D evelop a networking platform for
and Linkages for MSMEs to source for skilled MSMEs to source for skilled digital
MSMEs digital talents developed talents

FOCUS AREA 5: RECALIBRATING THE CENTRAL COORDINATING AGENCY (CCA) ROLE OF SME CORP. MALAYSIA APPENDIX A
STRATEGIC PLAN MATRIX
STRATEGY KEY PERFORMANCE WHO INITIATIVE TIME FRAME
INDICATOR (KPI) Core Support Short- Medium- Long-
Term Term Term
S12: Realigning • SMEIPA as a mandatory PC IT, SC a. R ealigning the roles and functions of
of SME Integrated reporting to oversee all SMEIPA and SSIS üü
Plan of Action MSME programmes by the
(SMEIPA) to Government b. E nhancing the features of SMEIPA and üüü
Enhance MSME SSIS
Coordination • SMEIPA published as a
Initiatives public document or findings
disseminated through public
consultation

S13: Enhance • A masterform on business PC IT a. D evelop a masterform to integrate ü
Business registration developed business registration process
Registration • M alaysiaBiz operating as
Process and the one-stop business b. E nhance the existing MalaysiaBiz Portal ü ü
Database registration platform to operate as a functional integrated
Centralisation one-stop business registration platform
• G rant application centralised
at MyAssist MSME Portal
c. F urther enhancements on MyAssist
MSME Portal to include grant application
ü ü ü

centralisation

Notes: PELAN STRATEGIK PERNIAGAAN 2022 - 2030
1. Three (3) timelines to focus on for the ease of implementation of these strategies: SME CORP. MALAYSIA
Short-term (3 - 6 months) │ Medium-term (6 - 12 months) │ Long-term (> 12 months)
2. Division Acronyms:
PC: Programme Coordination │ EP: Economics & Policy │ IC: International Cooperation │ ID: Policy Monitoring & Inclusive Development │

BS: Business Advisory & Support │ BD: Business Development & Entrepreneurship │ BBD: Bumiputera Business Development │
IT: Information Technology | SC: Strategic Communications

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APPENDIX A
STRATEGIC PLAN MATRIX

276
(II) RECONCILIATION AND MAPPING OF EXISTING PROGRAMMES TO STRATEGIES

NO. PROGRAMME STRATEGY
1. SME Financing Fund
S1 S2 S3 S4 S5 S6 S7 S8 S9 S10 S11 S12 S13

üüüüü üü

i. Business Accelerator Programme (BAP)

ii. Programme for Enhancement of Strategic Industry
and High Growth Enterprise (PRESTIGE)

iii. Global Linkages SME Programme (GLOSMEP)

iv. Galakan Eksport Bumiputera (GEB) Programme

v. National Mark of Malaysian Brand Programme

vi. SME Revitalisation Financing (SMERF)

vii. SME Investment Partner (SIP) Programme

2. Scale-up Programme üüü

i. BizME: GrowBIZ Programme

ii. Inclusive Business (IB) Programme

3. Bumiputera Business Development ü ü üüü

i. Tunas Usahawan Belia Bumiputera (TUBE)
Programme

ii. Bumiputera Enterprise Enhancement Programme
(BEEP)

CCA Related Programmes

4. SME Accreditation (MSME Status / SME ü ü ü ü ü ü ü ü ü
Competitiveness Rating for Enhancement, SCORE) üü

5. Coordination (SMEIPA / SSIS)

6. MyAssist MSME Portal üü üüüü ü üüü

7. MalaysiaBiz Portal ü

8. Action Centre for Sustainable SMEs (ACCESS) üü ü

9. Signature Events (E50 / SMIDEX / MSME Week) ü ü

10. SME Emergency Fund (SMEEF) ü

11. Information and Advisory üüüüüüüüüüüüü

NO. PROGRAMME STRATEGY APPENDIX A
S1 S2 S3 S4 S5 S6 S7 S8 S9 S10 S11 S12 S13 STRATEGIC PLAN MATRIX

1. 1-InnoCERT Programme

2. Bankable, Investable Gameplan (BIG) Programme

3. SME Digitalisation Programme

4. Inclusive SME Ecosystem (i-SEE) Programme To be reviewed or subsumed in the
5. BizME: Micro Connector Programme main programmes (1 - 4) above
6. SE Basic Scale-up Programme

7. Women Netpreneur Programme

8. Technology Need Pitching (TNP)

9. Halal Development Programme

10. Programme Coordination Working Committee
(PCWC)

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LAMPIRAN

APPENDIX B
STRATEGY ON INCOME GENERATION AND
COMMERCIAL OPPORTUNITIES

INTRODUCTION

SME Corp. Malaysia is required to generate income and use commercial opportunities to supplement
operating and developmental expenditures received from the Government. It is recognised that the
situation now faced by the organisation requires a fundamental shift in the way in which income
generating activities are identified, coordinated, implemented and monitored.

INCOME POLICY PRINCIPLES

The basic concept of SME Corp. Malaysia’s income generating activities will take several approaches,
as follows:

Core services to Increased revenue Products and SME Corp. A long-term
remain subsidised by charging should services offered Malaysia should approach should

to achieve the be supported by must be in not compete be taken for a
vision and mission improved quality accordance with directly with continuous income

of SME Corp. of delivery the needs of MSMEs stream
Malaysia as a paying customers
developmental

agency

SCOPE

Types of income generation activities include fees, charges and investments:

FEES CHARGES

Refer to payment for services Refer to payment for the price of goods and services offered by
performed or to be performed, SME Corp. Malaysia. It includes charges on:
such as, but not limited to ¢ Administrative services i.e. 10% of project costs or
registration, processing and
membership commitment funds for collaboration with external agencies
¢ All types of publications
¢ Data acquisition
¢ Promotional and advertising packages on any official SME

Corp. Malaysia’s platform including portals and programmes

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INVESTMENTS

Refer to holdings in equities and / or financial instruments based on Piawaian Perakaunan Kerajaan (PPK
6) (Disemak 2012). Types of investments consist of:
¢ Foreign Government Securities
Holdings in foreign countries’ government-issued securities
¢ Malaysian Government Securities
Holdings in securities issued by the Government of Malaysia
¢ Stocks
Holdings in shares of listed companies on Bursa Malaysia, Government-linked companies and other

companies in accordance with the requirements of Section 8 (3), Financial Procedure Act 1957 [Act 61],
as well regulations in force
¢ Overseas Deposits
Holdings in deposits or fixed deposits in various foreign currencies in overseas financial institutions
¢ Domestic Deposits
Holdings in deposits or fixed deposits in local financial institutions for a period of more than three (3)
months. Fixed deposits for a period of three (3) months or less are categorised under cash
¢ Other Investments
Investments in the form of other assets, such as land and gold

LEGISLATIVE FRAMEWORK AND GOVERNANCE STRUCTURE

Income generation and commercial opportunities strategy of SME Corp. Malaysia will be undertaken
in accordance with the stipulated provisions under the Small and Medium Industries Development
Corporation Act 1995 (Act 539).
The governance structure of the activities to be carried out under the income generation and commercial
opportunities strategy is as follows:
(i) All investment activities must be endorsed by the Investment Committee of SME Corp. Malaysia.

This committee, chaired by a Member of the Corporation, acts as an advisory body to recommend,
evaluate and endorse investment activities undertaken by SME Corp. Malaysia to ensure that it is in
line with the goals and roles of the agency. The committee also ensures the objectives, accountability
and control mechanisms for any investment activities by SME Corp. Malaysia. Upon endorsement
by the committee, necessary approval processes need to be undertaken by the programme or
initiative owner. This process is also applicable to non-investment activities that have monetary and
commercial impact on SME Corp. Malaysia (refer to Chart B1).

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LAMPIRAN

Chart B1: Steps in Securing Approval for Investment Initiatives

LEVEL 1 Preparation of concept Presentation Endorsement Approval of initiative
Approval of concept & mechanism of & deliberation of initiative at at Members of the
& implementation of concept & Investment Corporation Meeting
investment initiative Committee Meeting
mechanism of including market study mechanism
investment initiatives at Investment
& ROI to SME Corp. Committee Meeting
LEVEL 2 Malaysia & MSMEs
Approval of Minister
Approval of initiative Approval of initiative
in-charge of SME by Minister of by Minister in-
Corp. Malaysia & Finance
Minister of Finance charge of SME Corp.
Malaysia

LEVEL 3 Receive & record Implementation of
Implementation of of initiative results initiative including
investment initiatives including income process of approval

generated at project level

LEVEL 4 Regular presentation on Presentation by Investment
Monitoring, investment implementation Committee on status of
evaluation & implementation of all
reporting status at Investment investment initiatives
Committee Meeting at Members of the
Corporation Meeting

Programme Owner Investment Committee

(ii) Any changes to the fees and charges structure including amount and deferment at programme
level are subject to the approval from SME Corp. Malaysia (refer to Chart B2).

Chart B2: Steps in Securing Approval for Changes in Fees and Charges Structure

Proposed Changes Approval at
to Fees and Charges Management
Meeting of SME
Structure Corp. Malaysia

Approval / Notification
Endorsement at SME to Investment
Committee of SME
Policy Committee Corp. Malaysia
Meeting of SME
Corp. Malaysia

The income generation and commercial opportunities strategy has been designed to support the
execution by bringing clarity and consistency of approach, as well as facilitating the direction of
the organisation going forward. Big ticket opportunities, such as implementation of debt financing,
provision of business insurance and more direct investments, will be explored as future commercial
opportunities.

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