KUCHING: The Ministry of International Trade, Industry and Investment has reaffirmed its commitment to support Small and Medium Enterprises (SMEs) overcome economic challenges through various initiatives.
SMEs, a crucial driver of economic growth, contributed 39.1 per cent to Malaysia’s Gross Domestic Product (GDP) in 2023 and accounted for RM29.7 billion or 17.9 per cent to Sarawak’s economy in 2022.
But Deputy Premier Datuk Amar Awang Tengah Ali Hasan acknowledged the hurdles faced by SMEs and cooperatives.
“High business costs due to rising prices of raw materials, labour, and rental fees are among the main hurdles,” he said.
He said this in his speech read by Datuk Seri Mohd Naroden Majais at the Economic Challenges Seminar: Business Sustainability Opportunities for Cooperatives on Tuesday (Nov 26).
He added that other challenges include limited adoption of sustainability practices in areas such as Environment, Social, and Governance (ESG), insufficient connections with larger firms, and a slow pace of digitalisation in business operations.
To tackle these issues, Awang Tengah said the Ministry is continuing to roll out programmes like the Sarawak Micro Credit Scheme (SKMS), Small and Medium Loan Scheme (SPIKS), Graduates Towards Entrepreneurship (GERAK), Technical and Vocational Entrepreneurs (USTEV), and Digital Entrepreneurship Programmes such as Go Digital.
“We are also collaborating with TikTok Shop for the Sarawak Digital Mall initiative and implementing entrepreneurial training and product promotion programmes,” he added.
He noted that since 2021, the Ministry has approved RM193 million in financial aid, benefiting 8,900 entrepreneurs.
Additionally, more than 30,000 entrepreneurs have received non-financial support through capacity-building and business development efforts.
“These initiatives reflect our commitment to strengthen the SME sector and ensure businesses can sustain and grow despite economic challenges,” he said.
He also acknowledged contributions from federal and state agencies, including SME Bank, Amanah Ikhtiar Malaysia, Malaysian Industrial Development Finance Berhad, Mara, the Malaysian Cooperative Commission, Tegas, SDEC, and STIDC.
“These agencies have collectively assisted over 177,000 Sarawak entrepreneurs with a total aid value of RM2.6 billion,” he said.
