(30 May 2016 – 3 June 2016)

Countries / Highlights /

MALAYSIA

Govt target 22% of SME's to penetrate global markets by 2020

/ The Government hopes to see at least 22% of the country's SMEs to penetrate overseas markets for their products by 2020, says Minister in International Trade and Industry, YBhg. Dato’ Sri Mustapa Mohamed. At present, only 17% of the 690,000 SMEs in the country have successfully gained a foothold in the export market. For now, big companies are contributing more to the export trade than smaller ones. For this reason, SMEs must network with multinational companies.
(Source: Astro Awani, 30 May 2016)

MALAYSIA

SC chief sees digital platform for Asean SME financing needs

/ Asean is mulling the idea of a Pan-Asean crowd funding and digital platform for micro and SME’ financing needs, with the aim of more inclusive growth. A pan-Asean crowd funding is a peer to peer framework on how do we use those digital platforms to provide solutions for more inclusive participation and financing for the SMEs. On further deepening the Asean capital market and standardisation of regulations, there was a strong commitment towards to it as well as hasten the integration.
(Source: The Star, 3 June 2016)

MALAYSIA

A fruitful halal trip to China

/ Halal business is becoming big business, and China’s huge resources and market present Malaysian businesses with opportunities that just can’t be ignored. To this end, Malaysia sent an official business delegation there. Halal industries. In Qingdao, after a sumptuous dinner cum heavy drinking in traditional Shandong style, the key decision-maker approved the import of seven Malaysian fruits into the province which has a population of about 100 million. It was an eye-opening experience for SME owners who had participated in one-to-one business-matching sessions organised by the Bank of China. Over 1,000 firms from all corners of Shaanxi and other provinces came to meet potential business partners from Malaysia, Britain, Italy and other European nations.
(Source: The Star, 30 May 2016)
Countries / Highlights /

THAILAND

New security act ‘a boon for some SMEs’

/ TMB Bank expects SMEs in manufacturing and trading will have more demand for working-capital loans after the Business Security Act comes into force on July 2. Eighteen years in the making, the act covers, among other things, businesses; the right of claim; movable property used in a business, such as machinery and inventory; immovable property used in a business; and intellectual property. It also covers additional forms of collateral for accessing a bank loan other than traditional fixed assets such as deposits, land and buildings. TMB is the first Thai bank to launch a new product to take advantage of the act by offering a top-up loan of 20 per cent to the existing credit lines of SME clients, which can use receivables, inventories and right of claims as collateral.
(Source: The Nation, 3 June 2016) /

SINGAPORE

SME Committee unveils plans for third term / The SME Committee (Smec), set up by Singapore Business Federation (SBF), will embark on new initiatives to boost SMEs. Its plan for the coming term ranges from reviewing government assistance schemes to facilitating the formation of partnerships, joint ventures and mergers and acquisitions among SMEs. One project focuses on data collection and information-gathering on companies as they move from value-added to value-creation sectors. Another project will be to enhance the Fair Tenancy Framework, a set of guidelines and negotiation principles for small businesses that rent premises for their operations. Smec, which comprises 60 business leaders and key members from various trade associations and chambers, aims to encourage more businesses to adopt the framework. It will also submit a recommendation to the Committee on the Future Economy to institute a single agency to oversee innovation among SMEs.
(Source: The Straits Times, 31 May 2016) /

INDONESIA

WB appreciates improvement in ease of doing business in Indonesia / The World Bank (WB) has appreciated the serious efforts made by the Indonesian Government to improve the ease of doing business in Indonesia, particularly for SME businesses. The steps have particularly helped SMEs with in-depth discussions on reforms, deregulation and their implementation in the field of SME businesses, particularly when it comes to businesses getting electricity. The Government is planning to build new power plants with a combined capacity of 35 GW, 24 new seaports, 15 new airports, 2,024 new railway tracks, 621 miles of new toll roads, one million hectares of agricultural irrigation system, 49 dams to irrigate the new agricultural fields, and make sea tolls operational in an effort to link the main ports in Indonesia with the major ports of the world.
(Source: Antara News, 30 May 2016) /

“Forged for success”

At 17, he signed up as an apprentice with an ironmonger specialising in residential doors and gates. A year later, he was the owner. Today, Twe Hing Chuan is a manufacturer of security doors.

Twe Hing Chuan, founder of THC Metal Engineering, says it’s always a good idea to first test the depth of the water before starting a new business venture or switching directions, as he did. The 36-year-old, who started his ironmongery business in 1997, only became a specialist in security doors after 13 years in the business when he felt he could make a reasonably good go of it.

From about 15 clients a month in the early years, he came to have about 60 clients a month. Twe became very proficient in his work, but at the same time was acutely aware of the shortcomings of such a business model.

In 2010, he started THC Metal Engineering with an investment of about RM1mil and began to manufacture his own security doors at a 9,000 sq ft factory in Kampung Jawa, Klang. Twe also started to promote his security doors via roadshows and trade fairs. He also opened a showroom in Taman Botanic, Klang. By then, Twe had stopped his ironmongery works altogether.

“Once I was certain, I only focused on manufacturing security doors,” he says. Initially, THC manufactured about 400 security doors a month. They doubled their output to about 800 security doors a month when the company moved to its new 54,000 sq ft factory in Pandamaran, Klang in 2015. Today, THC has 60 workers on its payroll. It also operates four showrooms in the Klang Valley and one in Johor.

Source: www.thestar.com.my

Economics and Policy Planning Division

SME Corp. Malaysia

6 June 2016

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