“If you don’t drive your business, you will be driven out of business.”
— B.C. Forbes.
THERE are easily more than 100,000 small and medium-sized enterprises (SMEs), both registered and non-registered, engaged in the different sectors of the economy throughout Sarawak.
They, especially the 89,000 that have had their businesses officially registered so far, play a crucial role in driving the economic growth and development in the state.
The state government acknowledged their importance and as such has made a concerted effort to support their growth by providing them with various incentives, resources, and support services.
All these to create a conducive business environment and as a result, SMEs in Sarawak thrive and contribute significantly to the state’s economic prosperity.
Specific policies and programmes to encourage entrepreneurship and help SMEs to access funding, technical assistance, and other resources have also been implemented. This has increased the number of SMEs in the state, as well as their ability to compete in the global market.
About 14 years ago, there were only 40,000 registered SMEs state-wide.
The state government has established several funding schemes that are specifically designed to support the growth and development of SMEs.
These include the Sarawak Micro Credit Scheme, the Sarawak Entrepreneurship Fund and the Sarawak SME Assistance Scheme, all of which have made it easier for SMEs to access the capital they need to invest in their businesses and expand their operations.
Additionally, SMEs in Sarawak also have access to a range of support services. The state government has set up several agencies and organisations that provide SMEs with technical assistance, training, and mentorship.
These include the Sarawak Centre of Performance Excellence (Centexs), the SME Corp Sarawak and the Sarawak Bumiputera Chamber of Commerce. These organisations help SMEs develop the skills and knowledge they need to succeed in the competitive business environment.
In addition, the state government has also taken steps to promote SMEs in Sarawak through various initiatives. For example, the government has launched the Sarawak Buy Local Campaign, which encourages businesses and consumers to buy local products and services.
This initiative has helped to boost the sales of SMEs in the state and create more job opportunities for the local community.
Overall, SMEs in Sarawak are well taken care of by the state government, which has implemented a range of policies, programmes and initiatives to support their growth and development.
The availability of funding, support services and incentives has created a proper business environment, which has enabled SMEs to thrive and contribute significantly to the state’s economic prosperity.
However, the Sarawak government is not content with what has been implemented thus far and intends to continue supporting it to ensure the continued growth of SMEs.
This is evident with the recent announcement by Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg that the Sarawak government will establish an institution that would provide facilities and financial funds to assist SMEs.
He said the proposed institution would not only benefit SMEs but also expand Sarawak’s economy.
“I will announce the institution within these two months. It (the institution) will provide loan facilities and funds to help the small and medium enterprises (SMEs),” he was quoted as saying after attending a Hari Raya Aidilfitri open house of Deputy Minister for Education, Innovation and Talent Development Datuk Dr Annuar Rapaee.
The move is seen as yet another significant development to propel further the SMEs in Sarawak.
The financial assistance and support made available by the state government to local SMEs are in addition to those provided by the federal government.
Some of the financial support initiatives for SMEs provided by the federal government are Special Relief Facility (SRF); All Economic Sectors (AES) facility; Micro Credit Scheme; BizMula-i and BizWanita-i schemes; Government Guarantee Schemes by SJPP; Employer Advisory Services (EAS) programme; and Employer Covid-19 Assistance Programme (e-CAP).
Generally, SMEs are divided into four main groups, namely micro-enterprises, which employ between one and nine employees; small enterprises (10 to 49 employees); medium-sized enterprises (50 to 249 employees; and large enterprises (250 employees or more).
In an industrialised and modern economy, SMEs are considered to be the backbone of the local economies.
Aside from contributing to the creation of employment and wealth, poverty alleviation and income generation, SMEs constitute over 90 per cent of businesses, employ over two-thirds of all workers, and contribute approximately half the value of non-agricultural output.
As such, the state government’s continued support for the growth of the SMEs is critical.
On top of what has been implemented, state governments should explore the possibility to collaborate with SMEs to develop public-private partnerships, which can benefit both the government and the businesses involved. For example, an SME might partner with a state government to provide services to a particular community.
Or perhaps, simplify regulations and reduce bureaucratic red tape, to make it easier for SMEs to start and operate a business. Occasionally, we hear of grouses by some SMEs of excessive red tape to start or grow their businesses.
We should also look into offering specially tailored training and education programmes to help SMEs improve their skills, develop new products and stay up-to-date with industry trends.
Overall, the state government, without a doubt, has played a pivotal role in the growth of SMEs in Sarawak.
However, with the rapidly changing geopolitical and business environment, the state government still has a lot to do to help support SMEs, which are often regarded as the backbone of local economies.
Thankfully, under the present leadership, ample efforts have been implemented with more in the pipeline to help these SMEs.
God willing, with all these efforts and assistance, local SMEs will continue to grow and play a critical role in driving Sarawak’s economic growth and development.
